Blanket loan (original) (raw)
A blanket loan, or blanket mortgage, is a type of loan used to fund the purchase of more than one piece of real property. Blanket loans are popular with builders and developers who buy large tracts of land, 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 uses the 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.
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| dbo:abstract | A blanket loan, or blanket mortgage, is a type of loan used to fund the purchase of more than one piece of real property. Blanket loans are popular with builders and developers who buy large tracts of land, 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 uses the 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. Traditional mortgages typically have a "due-on-sale clause", which stipulates that if property secured by the mortgage is sold, the entire outstanding mortgage debt must be paid in full immediately. With a blanket mortgage, a “release clause” allows the sale of portions of the secured property and corresponding partial repayment of the loan. This is done to facilitate purchases and sales of multiple units of property with the convenience of a single mortgage. A builder, for example, might use a blanket mortgage to pay for construction of several homes in one neighborhood. When a home is sold, the portion of the mortgage that was used to fund that home is paid back to the lender, and then retired. The remaining outstanding balance is adjusted accordingly, and the blanket mortgage continues phase by phase in that manner, until all houses are sold and the entire mortgage is repaid and retired. (en) |
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| dbo:wikiPageLength | 1728 (xsd:nonNegativeInteger) |
| dbo:wikiPageRevisionID | 952619587 (xsd:integer) |
| dbo:wikiPageWikiLink | dbr:Mortgage_loan dbc:Mortgage_industry_of_the_United_States dbc:Mortgage dbr:Loan dbr:Due-on-sale_clause dbr:Real_property dbr:Borrower |
| dbp:wikiPageUsesTemplate | dbt:Globalize dbt:No_footnotes dbt:Wiktionary dbt:Real_estate |
| dcterms:subject | dbc:Mortgage_industry_of_the_United_States dbc:Mortgage |
| gold:hypernym | dbr:Loan |
| rdf:type | yago:WikicatLoans yago:Abstraction100002137 yago:Debt113397174 yago:Liabilities113396054 yago:Loan113398953 yago:Possession100032613 yago:Relation100031921 |
| rdfs:comment | A blanket loan, or blanket mortgage, is a type of loan used to fund the purchase of more than one piece of real property. Blanket loans are popular with builders and developers who buy large tracts of land, 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 uses the 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. (en) |
| rdfs:label | Blanket loan (en) |
| owl:sameAs | freebase:Blanket loan yago-res:Blanket loan wikidata:Blanket loan https://global.dbpedia.org/id/4a2jz |
| prov:wasDerivedFrom | wikipedia-en:Blanket_loan?oldid=952619587&ns=0 |
| foaf:isPrimaryTopicOf | wikipedia-en:Blanket_loan |
| is dbo:wikiPageDisambiguates of | dbr:Blanket_(disambiguation) |
| is dbo:wikiPageRedirects of | dbr:Blanket_mortgage |
| is dbo:wikiPageWikiLink of | dbr:Mortgage_loan dbr:Index_of_real_estate_articles dbr:Blanket_(disambiguation) dbr:Responses_to_the_COVID-19_pandemic_in_July_2020 dbr:Blanket_mortgage |
| is foaf:primaryTopic of | wikipedia-en:Blanket_loan |