To have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.
What is a blanket mortgage?
- A blanket mortgage is a single mortgage that covers many properties and serves as security for the loan.
- Real estate developers and larger investors frequently purchase multiple properties at once, thus a blanket mortgage allows them to consolidate such deals into a single loan.
- Consider the money you'd save on closing fees, both for the original mortgage and any subsequent refinances.
- Refinancing from numerous loans to a single blanket mortgage may also result in lower monthly payments, which may increase your cash flow.
Therefore, to have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.
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