|
Blanket Loan
Also known as a blanket mortgage, this type of loan covers
more than one parcel of property. Usually, individual parcels
are released or partially released from the blanket loan
/ mortgage as the debt is paid off.
Example:
Might use a blanket mortgage to pay for construction of several homes in one neighborhood. When a home is sold, the portion of the mortgage that was used to fund that home is paid back to the lender, and then retired. The remaining outstanding balance is adjusted accordingly, and the blanket mortgage continues phase by phase in that manner, until all houses are sold and the entire mortgage is repaid and retired.
|
