What is a blanket lien?

A blanket lien is a financial claim that attaches to multiple pieces of property owned by a borrower. This type of lien is commonly used in real estate transactions where a borrower pledges several properties as security for a single loan. By covering multiple properties, a blanket lien provides the lender with a broader range of collateral, increasing their security in the event of default. This means that if the borrower fails to make payments, the lender has the right to pursue multiple properties to recover the debt.

Understanding the distinction between different types of liens is crucial in real estate and lending contexts. A lien that exists only on a single property is fundamentally different because it does not give the lender claims against additional properties. Additionally, blanket liens are enforceable in court, contrary to the notion of being unenforceable, and they may not always be subordinate to other liens, as they can have various priority levels depending on the specific terms and conditions of the mortgage or loan agreement.