Blanket loans are one of the many types of mortgage loans offered by lending institutions. Unlike many of the more traditional forms of mortgages, a blanket loan is designed to cover the costs of purchasing several pieces of real estate property. These types of loans are most popular with land developers who purchase large plots of real estate and then divide them into subplots which are sold individually.
How Blanket Loans Work
Blanket loans are most valuable to people purchasing large tracts of land which will be sold back in smaller plots. Traditional mortgage loans typically have a clause that requires the remaining balance of the loan to be paid back immediately.
However, this would be difficult for property developers, who are constantly selling pieces of land to be developed. In blanket loans, the borrower can pay back proportionate amounts of the mortgage as he or she sells plots of the land.
If you or someone you love is struggling to live with heavy levels of debt and is interested in learning if a bankruptcy filing could discharge the loans you are facing, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, may be able to help. Contact us today by calling 414-377-0518.