Repossession

Definition

• If a borrower stops making payments on a property, the lender has the legal right to take back the property.

Synonyms
repo, recovery, retrieval, recoup

Related Terms and Acronyms

• Bankruptcy (BK) — Acronym, 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 — Definition,
  • When a borrower fails to fulfill the obligations of a loan or lease.
• Delinquent Mortgage — Definition, Important,
  • A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
• Forbearance — Definition,
  • Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
• Foreclosure — Definition,
  • 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.
• Power of Sale — Definition,
  • The right of a mortgagee to force the sale of the property without judicial proceedings should default occur.