Is a company: no
Is a proper noun: no
Definition of Repossession
- If a borrower stops making payments on a property, the lender has the legal right to take back the property.
Related Terms and Acronyms
- Bankruptcy (BK) — Bank, Important,
- A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
- Default — Bank,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Power of Sale — Bank,
- The right of a mortgagee to force the sale of the property without judicial proceedings should default occur.
- Forbearance — Bank,
- Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
- Foreclosure — Bank,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Delinquent Mortgage — Definition, Important,
- A mortgage loan where the borrower fails to make payments as specified in the loan agreement.