Alabama Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What does a blanket mortgage cover?

A single piece of real estate

Two pieces of real estate

More than one piece of real estate

A blanket mortgage is a type of mortgage that covers multiple properties as collateral for a single loan. This means that if one of the properties included in the blanket mortgage fails to meet loan requirements, the lender can still foreclose on the entire portfolio. Option A is incorrect because a blanket mortgage is not just limited to covering a single property. Option B is incorrect because there can be more than two properties covered by a blanket mortgage. Option D is incorrect because blanket mortgages can cover both residential and commercial properties. Therefore, the correct answer is C, as it accurately reflects the scope of a blanket mortgage.

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Only commercial properties

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