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When and How to Use a Blanket Real Estate Mortgage

By James Kimmons, About.com

In certain situations, blanket real estate mortgages can be a viable financing tool. When the right conditions are present, and the buyers and sellers all understand their options, lenders can make beneficial blanket mortgage loans. Learn the criteria and the pros and cons.

Purposes for Blanket Real Estate Mortgages

The reasons for choosing a blanket mortgage are very specific. Lenders can be enticed to offer better terms and interest rates, and sellers can move properties while holding paper with more security. Learn the specific criteria that would make a blanket real estate mortgage a good choice.

Buyer Advantages in Using a Blanket Mortgage

There are some very good business and investment reasons for using a blanket real estate mortgage in a purchase situation. A buyer can get better loan terms, free up cash and more. Learn the buyer advantages for a blanket mortgage.

Disadvantages of Blanket Mortgages for Buyers

As with most financial decisions, there are pros and cons to using a blanket real estate mortgage. Learn why a buyer might not want to do so.
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