A blanket loan is a loan in which 2 pieces of real estate are secured under one note.

A blanket loan, or blanket mortgage, is a mortgage client securing several parcels of property, frequently used by developers who have purchased a single tract of land intending to subdivide into individual parcels. The developer normally requires a "partial release" clause so that individual parcels can be released from the blanket mortgage as they are sold.

Most blanket loans are provisioned for partial release (partial payoff) of the loan as the various different properties blanketed by the loan are sold.

Blanket loans are popular with developers who have bought one single unit of land with the intention of subdividing it into individual parcels. The developer will usually require a "partial release" clause so the individual parcels (of land) can be released from the blanket mortgage as each one of the parcels is sold.

 

 ++