Repossession is when a creditor takes back whatever it is you bought with their loaned money because you didn’t make payments (defaulted) on your loan. If you get a loan to buy a car and don’t make the payments, the financing company can take your car without going to court or even telling you – at least until you pay your bill. And if you default on mortgage payments, the bank can repossess your house!

Tags: loans, repossession