What is the term for a mortgage that covers multiple parcels of real estate?

A mortgage that covers multiple parcels of real estate is known as a blanket loan. This type of financing allows a borrower to secure one loan that can cover several pieces of property, typically used in real estate investments or development projects. Blanket loans are particularly advantageous for developers or investors because they can consolidate multiple mortgages into a single loan, making it easier to manage payments and financing while also potentially lowering the overall interest costs.

In the context of real estate, a blanket loan can facilitate the sale of individual properties in the future, as it often comes with a release clause that allows for the individual parcels to be released from the mortgage as they are sold. This flexibility is essential for those engaged in property development or investment, where properties might be sold or subdivided over time.

Other options, while they suggest different types of mortgage arrangements, do not accurately describe the specific scenario of covering multiple parcels. For example, a combined mortgage typically refers to a loan that combines first and second mortgages on a single property, not multiple parcels. An encumbered loan suggests a loan against a property with a lien or liability, which doesn't specifically denote multiple properties. Finally, a group mortgage implies a collective loan, but again, does not inherently refer to the coverage of multiple parcels as