Finance

In Louisiana, a 'blanket mortgage' is used when:

AA mortgage covers a property in all weather conditions

BA single mortgage encumbers two or more parcels of real property simultaneously, often used by developers to finance multiple lots✓ Correct

CA government program covers mortgage defaults

DA co-signer provides additional collateral

Explanation

A blanket mortgage is a single mortgage that covers two or more parcels simultaneously — commonly used by developers to finance a subdivision of multiple lots. Individual lots may be released from the mortgage (partial release) as they are sold.

People Also Study

Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Amortization

The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Loan-to-Value Ratio (LTV)

The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.