Repossessed

The act of a lender or creditor taking back property, such as a car or a home, from a borrower who has failed to meet the agreed-upon payment schedule, loan terms, or other financial obligations. This typically occurs after a legal process, involving notices and a period of default. The asset then becomes the property of the lender, who may sell it to recover the outstanding debt. It is a legal remedy employed by creditors to mitigate financial losses when debtors fail to uphold their end of the contract.

Repossessed meaning with examples

• After months of missed mortgage payments, the bank finally repossessed the family's house. The family was forced to vacate the premises, losing their home due to the inability to keep up with the financial burden. They had to find a new place to live, the process being emotionally and logistically draining.
• The car dealership quickly repossessed the sports car when the buyer defaulted on their loan. The lender had to retrieve the vehicle to resell it and recoup their investment, including the outstanding loan balance and any associated legal expenses. This outcome resulted in severe penalties for the buyer.
• Due to the company's plummeting sales and failure to make payments, the equipment was repossessed by the leasing company. The leasing company took back the machinery, leaving the business unable to continue its operations. The company eventually filed for bankruptcy because of a chain of debt defaults.
• The art collector, unable to maintain the luxury payments, had his valuable paintings repossessed by the bank. The artwork was auctioned off, but the funds did not cover the collector's initial loan. The loss had a profound impact on the collector's personal and social standing.
• Because of the economic downturn, the furniture store had to **repossess** the bedroom set from the customer. The store was saddled with uncollected debt, leading to its overall financial difficulty. The furniture will likely be offered for sale again at a reduced price to recover their loss.