What characterizes a blanket mortgage?

A blanket mortgage is characterized by its ability to secure a single loan with multiple properties under one mortgage agreement. This type of mortgage is particularly beneficial for developers or investors who own several properties, as it allows them to use the combined value of those properties as collateral for a larger loan. This can simplify the financing process, as it reduces the need for separate loans for each property, streamlining management and reducing transactional costs.

The other options describe different types of financial arrangements. A mortgage that covers only a single property focuses on individual property financing, which doesn't capture the essence of a blanket mortgage. A mortgage secured by another mortgage refers to a scenario involving second liens or similar structures but does not address the key characteristic of covering multiple properties. Lastly, a short-term loan for property renovations pertains specifically to financing improvements rather than the overarching concept of a blanket mortgage, which is fundamentally about managing multiple properties with a single financial instrument.