To take back possession of something, typically a physical asset like a car, house, or equipment, when the buyer or borrower fails to meet the terms of their agreement, such as defaulting on loan payments. The act involves legally reclaiming the item, often through a specific contractual clause that grants the lender the right to seize the asset if the agreed-upon obligations are not fulfilled. Repossession aims to minimize the lender's financial loss resulting from the borrower's breach of contract and to recoup the outstanding debt by selling the item.
Repossesses meaning with examples
- Due to the homeowner's inability to keep up with mortgage payments, the bank had to repossess the property. After multiple missed deadlines and several late charges, the bank initiated the legal process to seize the house, which resulted in the family having to relocate, causing great disruption to their lives and financial uncertainty.
- The car dealership threatened to repossess the luxury car after the buyer failed to make payments for three consecutive months. The dealership had sent several reminders, but the payments were not made. Now the buyer will face not only the loss of the car, but also a hit to their credit score.
- The construction company could no longer make payments on the heavy machinery it had leased, and the leasing company decided to repossess the equipment. The leasing company had made several arrangements for missed payments but it was not sustainable for the company.
- When the retailer encountered payment problems, the equipment supplier was left with no option and had to repossess the printing presses. Several attempts were made by the equipment supplier to negotiate with the retailer, but the terms of the agreement meant the presses were taken back and the store lost vital equipment.