repossession

Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property back from the party having right of possession without invoking court proceedings. The property is then sold on by either the financial institution or 3rd party sellers. The extent to which repossession is authorized, and how it may be executed, greatly varies in different jurisdictions.

If one’s mortgage payments are not being kept up to date then the lender may decide to approach the courts to apply for a repossession order. The threat of repossession is something that a growing number of individuals are facing today. This can be put down to a number of factors that will on the most part, include borrowers who overstretch themselves financially and subsequently struggle to meet their monthly secured commitments. Runaway property prices have too played a part as this has made homes in many areas unaffordable for first-time buyers. Many stretch their finances to get a first foot on the ladder.