Resources > Glossary > Blanket Mortgage

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Blanket Mortgage

Phonetics: blan·ket mort·gage

Function: noun

Definition 1:
A blanket mortgage is a mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project. Blanket loans are popular with builders and developers who buy large tracts of land, and then subdivide them to create many individual parcels to be gradually sold one at a time. Rather than securing a new mortgage each time a portion of the development is sold, the borrower can get a blanket loan to buy them all. Once a parcel is sold, a portion of the mortgage is released, with the rest of the mortgage remaining intact.