Blanket Mortgages
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A mortgage creating a lien against two or more tracts of real property. It is briefly defined as a mortgage that covers more than one parcel of real estate. We recommend a blanket loan for those borrowers who have found the new home they wish to purchase, but have not yet sold their current home. A blanket loan combines the existing mortgage on the existing house with a new mortgage on the new house. This allows the borrowers to access the equity in their current home and put it toward their new purchase. There is a single closing with a temporarily combined loan amount covering both houses. The combined loan is paid down upon the sale of the current residence to a smaller permanent mortgage. For example, if you owned three properties and instead of borrowing separately against each one, you could use a blanket mortgage to create a second mortgage on all three properties. Developers use blanket mortgages to develop large tracts of land into many residential or commercial properties. A single blanket mortgage can be used to finance all of the properties without taking out separate mortgages on each individual property.
