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Repossession
The term "repossession" refers to an instance in which some object is either seized or surrendered voluntarily as a consequence of an individual's inability or failure to follow a scheduled series of payments. Normally some financial institution will instigate the repossession on an item that has either been used as collateral to secure a loan or has been leased or rented. Although a grace period of some thirty days for late payments generally applies in such circumstances, statistics show that loans or accounts that go ninety days without payments will never be up to date again.
Financial institutions and other entities are reluctant to undertake a repossession as the process leaves them with a "used" item that can usually only be disposed of at a wholesale auction for a greatly reduced price. Repossessions usually include others fees to cover both the cost of the seizure and the depreciation in the value of the object.
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