Freehold
Financing term
A single mortgage that covers more than one parcel of real property, often used by developers.
This term belongs to Financing. The questions below are real items from Freehold's bank that use it - each one cites its source.
Every Freehold question shows why the right answer is right — and cites its source.
A developer financing several lots under a single loan secured by all of the parcels would use a:
Blanket mortgage — A blanket mortgage covers more than one parcel of real property under a single loan, commonly used by developers, and typically includes a partial release clause allowing individual lots to be released as sold.
Source: PSI National Real Estate Exam Content Outline §4 Financing
A homeowner who needs short-term financing to cover a down payment on a new home before their current home sells would most likely use a:
Bridge (swing) loan — A bridge or swing loan is short-term financing that lets a homeowner access equity in their current home to fund the purchase of a new one before the existing home is sold.
Source: PSI National Real Estate Exam Content Outline §4 Financing
If a cooperative shareholder stops paying their monthly maintenance assessment, what risk does this create for the other shareholders?
The corporation's blanket mortgage and taxes cover the whole building — Because the cooperative corporation typically holds one blanket mortgage and one tax bill for the entire building, a shareholder's default can affect the whole cooperative's finances unless the shortfall is covered.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
See every term in this area: Financing glossary