Escrow & Title
In Michigan, a 'blanket mortgage' covering multiple parcels benefits the lender because:
AIt provides multiple properties as collateral for a single loan✓ Correct
BIt reduces the loan amount
CIt eliminates the need for individual property appraisals
DIt prevents any one parcel from being sold
Explanation
A blanket mortgage uses multiple properties as collateral for a single loan, giving the lender a broader security interest. This is common in Michigan development financing where a developer needs funds against an entire project with individual lots released as they are sold.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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