Blanket Mortgages - Posted by Nadine Spiker

Posted by Ed Garcia on June 21, 2000 at 09:45:16:

Good morning Nadine,

Things aren’t always what they seem. There are lenders who lend under the conditions that you have just stated, a Blanket Lien, or Cross Collateralization.

The lenders who would lend in that manner would have to be a “Portfolio Lender”.
Meaning, a lender who not only makes the loan, but keeps it.

The majority of Mortgage Companies that you go to, are either brokering the loan off,
or making the loan, and selling it off. Because of that, they have to keep their loans separate from one another. My suggestion to you is to go to a Small Bank, Savings and Loan, or finance company, who keeps the loans after they are made. It’s not unheard of, to ask the lender who your dealing with, if they are a portfolio lender.

When getting a blanket loan, or a loan consisting of cross collateralization.
Make sure to request (Release Clauses) in your loan. This will allow you flexibility in either selling off one of your properties, or borrowing against it.

Ed Garcia

Blanket Mortgages - Posted by Nadine Spiker

Posted by Nadine Spiker on June 21, 2000 at 08:13:26:

Could anyone answer why lenders frown upon Blanket Mortgages for rentals? This seems to be the only way to do this deal and my lender doesn’t want to do it yet he understands that it is a multi-purchase. What can I do?