I have had many blanket loans (one loan with many properties in it) over the years. Hopefully this is not a new trend but I wanted to make you aware of this if you have a blanket loan. My bank recently got a new CEO and they are now taking 100% of net proceeds on the sale of a property within the loan. I would not have sold a property knowing this but they did not divulge until the day before closing. Granted I could've spoken with them before listing the house for sale but last year I sold two properties and the payoffs were divided equally and fairly and I received my equity upon the sales. No more. They don't like the terms of my loan 4.5% from 2021. They are doing this across the board to their "good clients." --99.69.xxx.xx

Yes, blanket loans can be problematic. For the ones I've had I have always negotiated an explicit formula to be followed by all parties when a property is removed from the loan regarding how much of the principal must be paid at closing. This arrangement would be made at the same time the other terms of the loan are negotiated. So, to J.R.'s point, if anyone already has a blanket mortgage, and they don't recall discussing this with the lender when they were going into the loan, it might be a good idea to check with the bank as to what is either already in the loan agreement or what their current "policy" is. --184.56.xx.xxx

--72.218.xx.xxx

Thank you DJ, and I get that. I forgot to mention in this chain that I am posting as the author of my best selling book "Build Real Estate Wealth: Enjoy the Journey of Rental Property Investment." I hope you get a chance to check it out on Amazon. --184.56.xx.xxx

Can you elaborate? I am in the process of getting a blanket loan over 3 finished properties, mainly to have some extra breathing room as we finish the duplex (townhouse) and the four family. I don't intend to remove any property from the loan. The main thing I'm concerned with is if the bank is going to require a low deductible on insurance (less than 5% of the loan). I favor high deductibles. --64.246.xxx.xx

--24.101.xxx.xxx

Mapleleaf18, it's interesting that you brought up the possibility of the bank possibly requiring you to have a low deductible on your property insurance. Around here, I have never heard of a lender trying to dictate the amount of the deductible for the insurance on the property on which they are lending. Is this actually a "thing" in your area? If so, what policy does the bank try to apply? --184.56.xx.xxx

--23.28.xx.xx

Joel Miller, it is with Penfed HELOCs. Got a letter saying it has to be no more than 5% of the loan. --64.246.xxx.xx

Interesting. So if you wanted to carry a $2,500 deductible, your loan would have to be at least $50,000, right? --184.56.xx.xxx

My HELOC is 50K. I'm only using 32K and they balked at a $5,000 deductible. --64.246.xxx.xx