Blanket Loan is a loan that uses more than one piece
of land to secure a debt. A “release clause” allows some of
the land to be released upon partial payment of the debt. The
beneficiary of a blanket loan signs a “request for partial
reconveyance” when part of the debt is paid. The trustee signs
and records a “partial reconveyance deed”.
When a builder pays to have several lots released from
a blanket loan, his equity in the remaining lines increases.
For example: As an investor you will buy a number of
houses on one street right next to each other. Rather than pay
points and fees for each property seperately, blanket loan may save
you money.
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