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 Blanket Mortgage

Blanket Mortgage Creative Real Estate Financing Technique #5

The seller might be willing to sell, no money down and take back a mortgage for the entire equity of a property. 

However, the seller might be afraid that you will walkway from the property before building up a substantial equity, forcing the resale of the property all over again. If this happens, the seller may be fearful of getting the property back in a condition worse than when it was sold to you.

You can overcome the seller's fears by offering additional collateral with a blanket mortgage. A blanket mortgage includes more than one property. You can include equity in your home, other property, or even an automobile under the terms of a blanket mortgage. 

Caution: The blanket mortgage that the seller will be taking back may be for a term as long as five or ten years. Since you do not want to tie up your extra property for that period of time, make certain that the mortgage contains terms that will allow you to release your home or other property from the mortgage after you have made payments on time for a period of 6, 12, or 18 months.

Specific Situations to Apply Technique #5


The Property

Low Interest Assumable Mortgage


The Buyer

Cash for only Part of Down Payment

No Cash at All

Lump Sum Cash Due Soon

Poor Credit

Equity in Real or Personal Property

Dead Equity

Cash Value Life Insurance Policy


The Seller

Will Finance: Wants Added Security

Must Sell Immediately

Moving Out of Area

Blanket Mortgage To Refinance High