Legal Definitions - blanket mortgage

A blanket mortgage is a type of mortgage that covers two or more properties that are pledged to support a debt. It is a single mortgage that covers multiple properties. This type of mortgage is often used by real estate investors who own multiple properties and want to use them as collateral for a loan.

For example, let's say an investor owns three rental properties and wants to take out a loan to purchase a fourth property. Instead of taking out a separate mortgage for each property, the investor can take out a blanket mortgage that covers all four properties. If the investor defaults on the loan, the lender can foreclose on all four properties.