My though was the only difference is that a repossession takes place on something that can be considered a “transportable or mobile” collateral. Your thoughts?
Passive Income
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Repossesion is a vehicle and foreclosure is on a house but they are basically the same thing… they get taken because you dont pay the note
Technically a foreclosure a the same as a repossession - that is, the person who used to hold the property no longer holds it.
However, since residences are treated differently than vehicles, there are more “legal hoops” that a bank has to jump through to process a foreclosure.
Just nomenclature, forclosure usually involves real estate, reposession can involve just about anything. Either way it is confiscation of property due to default of a mortgage or loan.
I think you’re on the right track. I would also offer that foreclosure is a “step” that follows what amounts to repossession of immoveable property, like a house. It’s a legal, formalized, time-limited pronouncement that is part of a repossession process.
also a bit of a cultural difference on this, foreclosure been an american term. repossesion applies to property in the UK.
Rob
Even in the UK, nearly the same but legally , they are different in procedures.
First your loan gets foreclosed, then your house gets repossessed.