Blanket Mortgages in Florida
A blanket mortgage encumbers two or more Florida properties under a single loan, providing consolidated financing for developers, investors, and businesses with multiple real property holdings.
Partial Release Provisions
Florida blanket mortgages include partial release clauses allowing individual parcels to be released from the mortgage upon payment of a specified release price. Subdivision developers rely on this mechanism to sell individual lots with clear title while maintaining the blanket loan on remaining inventory. Release prices typically exceed the pro-rata loan allocation to protect the lender's collateral coverage.
Cross-Collateralization Risk
The cross-collateralization inherent in blanket mortgages means that default on any covered property can trigger foreclosure on all properties. Florida borrowers should carefully evaluate whether the consolidation benefits outweigh the risk of losing multiple properties through a single default event.
Related Terms
- Mortgage
- Foreclosure
- Construction Loan
Barnes Walker Real Estate
Barnes Walker structures blanket mortgage transactions for Florida developers and investors. Contact us for financing guidance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC