Which mortgage enables the release of legal title upon partial payment?

A blanket mortgage is designed to cover multiple properties or lots under one financing arrangement. This type of mortgage allows for the partial release of legal title to specific properties as they are paid off or sold, which is particularly useful for developers or investors who are working with several parcels of land.

When partial payments are made, the lender will release the lien on the specific property or lot being paid off, allowing the borrower to gain clear title to that property. This feature makes blanket mortgages a flexible financing option when dealing with numerous real estate investments or development projects.

In contrast, other options such as a balloon mortgage involve a structure where lower payments are made initially, with a lump sum due at the end, providing no partial title releases. A construction loan is specifically tailored for building projects, and those funds are typically disbursed in stages as construction progresses, but they do not facilitate partial title transfers. A reverse mortgage permits homeowners, typically seniors, to borrow against the equity in their homes, receiving funds instead of making payments, which does not apply to title release upon partial payment in the same sense as a blanket mortgage does.