Wednesday, January 24, 2007

Blanket Mortgages

Many people who are interested in buying a property with very little money forget about something called a blanket mortgage. The old way of financing a home or piece of property used to find people running to their local bankers to finance their home or property using a blanket mortgage. Now, with so many other options, often a blanket mortgage is forgotten.

Blanket mortgages can be very beneficial. The banks will think so because they are going to be using the mortgage to cover to properties. The one the buyer is buying and needs to secure the financing for and another existing property the buyer already owns. Banks and lending institutions will love the concept of blanket mortgages and will love the opportunity to hold two properties for collateral for one home or other real estate.

The blanket mortgage is really a poor idea if you are tight against money issues because if you are a risk for the investment then the banks will indeed foreclose if they get the suspicion you can’t afford the payments such as multiple late payments or failure to pay. Then you will lose the property you were buying and the property you already owned so do not use a blanket if you have any doubt you can’t make your payments.

Blanket mortgages are a great idea if you need financing and are very secure in the fact that you can meet your payments in a timely manner. You can use blanket mortgages for securing the financing on properties when you plan on owning the property for a short term or if you know that you are going to pay off the property quickly, then blanket mortgages may be for you too. If you are in doubt about a blanket mortgage, then look at other options first. However, your bank may make an interest rate savings to you in order to secure one property with two securities. If you know this isn’t a problem and you can easily make the payment, then by all means, use the blanket mortgage.

Farm credit and local southern banks were always fond of the blanket mortgages in the past. However, with the popularity of mortgage companies and non-conforming loans, the blanket mortgages just kind of lost their appeal. While the blanket mortgages were delightful in their glory day to the local banks around the country, many farmers and miners lost their homes and land because of them which is why so many people are apprehensive about using them now and they should be apprehensive about using them now days.

Often, farmers and miners in desperation would blanket a property with two secure real estate holdings in order to obtain funds which they desperately needed. Later, when they felt like they could handle larger payments, they would return to the bank and ask for only one property to be held accountable for the note and find out that wasn’t possible. In the days of old, this would then send up a red flag to the lender who would then call the note due and of course, foreclosures were possible if the farmer or whoever couldn’t get the financing for the property.

Those days are gone in most areas of the country because the lending is fairer and laws are upheld to protect a person borrowing money from a lending institution. Locally owned banks could probably still pull off some unscrupulous dealings but it would be hard to get by with now days which is why blanket mortgages are back in the saddle again so to speak. Now days the blanket mortgages are easier to obtain and easier to refinance when the loan amount is small enough to warrant only one property securing the note. It makes things much nicer for the borrower.

Blanket mortgages can be used for another reason too. Parents who want to help their children finance their first home but don’t really have the money to help them do that can use a blanket mortgage on their home to secure their children’s new home purchase. This is done with some level of frequency now especially young people are finding it harder and harder to secure their own home loans.

If you are interested in home blanket mortgages, check out the internet with the keyword blanket mortgage or visit online bookstores for titles about real estate investments which normally cover blanket mortgages. It is a great way to finance if you meet the requirements banks are looking for and if you know you will not default on the payment. It’s also perfect for parents to use to help their children and it is perfect for short term loans.

When you are ready to secure a note, ask your lender about blanket mortgages. If you are thinking about a new home or building a new home, ask about a blanket mortgage and if you are buying an investment home, again, a blanket mortgage can be effective in meeting your short-term loan goals.






http://www.1st-in-loan.net/loan_pf/Blanket-Mortgages.html