An investor took out a loan and gave three different parcels of land as collateral for the mortgage, this is known as:

• A. A single-property loan
• B. A wraparound mortgage
• C. A blanket mortgage
• D. A reverse mortgage

Answer: (C)

Using more than one property as security for a single loan is called a blanket mortgage. It lets the lender place liens on multiple parcels to back the debt, which is common when an investor owns several lots and wants one loan tied to all of them. Often there’s a release clause so parcels can be sold off individually while the remaining properties continue to secure the loan. The other options describe different loan structures: a wraparound mortgage layers a new loan on top of an existing one, rather than using multiple properties as collateral; a reverse mortgage is a loan for seniors that converts home equity to cash and isn’t about multiple parcels; a single-property loan is secured by just one parcel.