Whats the difference between a foreclosure and a repossession?
Question:
Answer:
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.
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
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
http://www.firstforfinance.net
Even in the UK, nearly the same but legally , they are different in procedures.
First your loan gets foreclosed, then your house gets repossessed.
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