Repossession

No, it’s not what happens when an exorcism doesn’t work…repossession is when the seller of something takes it back because the buyer has missed payments on it. It’s a remedy for the seller, to make him, her, or it whole—or at least closer to whole—when the purchaser doesn’t pay.

When is Repossession possible?

Obviously, if you pay in full for something at the time of purchase, the seller has no further rights to it. It’s when something is financed, bought on time, bought on in installment plan, or bought on credit, that repossession becomes a possibility. However, it takes more than the mere act of paying for something over time to give the seller or lender (if a third-party lender, like a bank, is being used to finance a large purchase, like a home or a car) the right to repossess property. Typically, repossession rights arise by contract—there is something in the purchase agreement or note that provides that repossession is an option in the event of a failure to pay on time.

What Can Be Repossessed?

Pretty much anything can be repossessed. The most common example for most people is the repossessed house; if the homeowner misses mortgage payments, the bank can take possession of the home, or foreclose on it. Most people are also fairly familiar with the situation of vehicle repossession: miss payments on a car loan or note, and the repo man may come to take the vehicle. A third common example is collateral repossession: a borrower gave a bank or other lender a security interest in some property in order to get a loan; if the loan isn’t paid, the lender may repossess the property. This may happen if a business gives a bank a security interest in equipment or inventory it’s buying with the use of a loan or line of credit.

Repossession Legal Help

First, of course, you don’t want to give up your property lightly—if there’s any mistake or extenuating circumstances, you want someone in your corner to help you hold onto what’s yours. Second, though, repossession is generally not the end of the story: if the repossessed property is worth less than the amount you owe (as is the case for homeowners “underwater” on their loans), the lender can then sue you for the balance. Since you could end up on the wrong end of a lawsuit, you should get an experienced repossession attorney involved as soon as you’re aware of trouble brewing with a lender.