Blanket Mortgage

Definition:

A mortgage or trust deed that covers more than one lot or parcel of real property, and often an entire subdivision. As individual lots are sold, a partial re-conveyance or release from the blanket mortgage is usually obtained.

Examples:

The developer was able to get a low APR on his blanket mortgage, which was fortunate as it took him several years to sell all of the parcels in the complex.

Although the blanket mortgage for all of the properties uses a 30-year amortization schedule, the individual property owners will be able to negotiate their own contract rates.