seizure of collateral securing a loan in default. Repossession occurs most often when other attempts to persuade the borrower to make payments that are past due fail to cure the loan delinquency. In most jurisdictions, repossession of collateral in which a lender has a security interest is done by obtaining a deficiency judgment or court order authorizing the lien holder to reclaim the property.
act by which a seller takes back property for which payments have not been made according to contract.
seizure by a lender of property that is collateral for a debt when loan payments are not made; retrieval by a lessor or landlord of rented or leased property. Contrast foreclosure, which removes a mortgagor's ownership rights.
Example: The most commonplace example of repossession is of automobiles by the lender who provided the consumer loan, but rented furniture or a rented apartment can be repossessed for nonpayment of rent.
