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Home>Glossary>Repossession

Repossession

Legal & insolvency
When a lender takes back an asset after missed payments on a secured loan.

Overview

Repossession can happen with mortgages or car finance when payments fall behind.

It is a serious event with long-term credit impact.

Why it matters

  • It can significantly damage your credit profile.
  • It can lead to legal and financial consequences.
  • It can affect future borrowing and housing.

FAQs

Does repossession show on my credit report?

Yes. It is typically recorded as a major negative event.

Can I prevent repossession?

Contact your lender early to discuss options if you are struggling.

Related terms

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