What does a blanket mortgage cover?

A blanket mortgage is a single loan that covers two or more properties, which is why the answer is correct. This type of mortgage is typically used by developers and builders to finance multiple properties under one loan agreement. It allows for the collateralization of multiple pieces of real estate, making it efficient in terms of both management and financing.

The advantage of a blanket mortgage is that it can facilitate the development or sale of multiple properties without the need for separate loans for each one. As properties are sold, a release clause in the blanket mortgage may allow portions of the loan to be paid off, freeing those specific properties from the mortgage while maintaining the overall financing structure for the remaining properties.

In contrast, options that suggest coverage for only a single property or restrict the coverage to particular types of properties, like only commercial or only vacant land, do not accurately represent the characteristics and purpose of a blanket mortgage. Therefore, the correct answer highlights the encompassing nature of blanket mortgages in financing various properties simultaneously.