Repossessable

Repossessable describes an item or asset that can be legally taken back by a lender or seller if the borrower or buyer fails to meet the agreed-upon terms of a financing agreement, such as missed payments or violations of contract stipulations. This typically applies to tangible goods like cars, houses, or appliances, where the lender retains a security interest in the item until the debt is fully satisfied. The legal framework governing repossessability is critical, outlining procedures for repossession and the rights of both the lender and the borrower.

Repossessable meaning with examples

• The car dealership informed the client that their new vehicle was repossessable if they failed to make their monthly payments. They reminded him of the agreement he had signed at the time of purchase. The terms specifically outlined the conditions under which the car could be reclaimed.
• Due to the homeowner's consistently missed mortgage payments, the bank sent a notice stating that the house was now repossessable. Despite attempting to negotiate with the bank the house would be foreclosed on.
• The appliance store clearly indicated that the refrigerator was repossessable if the customer defaulted on their payment plan. The contract detailed this clause and also the process of repossession to which the client agreed.
• Because of the business's failure to repay the equipment loan, the manufacturing machines were deemed repossessable by the bank. This meant that the bank would take back the equipment to cover the outstanding debt.