Man Repo Loan Car Borrower Buyer Pay Bank

"Repossession" occurs when a buyer "defaults on a loan" (fails to pay back a loan as required) and the bank "takes possession of" (becomes the new owner of) the item for which the loan was made. Most often, this is a "vehicle" (car or truck), where the buyer "obtained" (got) a loan to purchase the car, but did not make "car payments" on time or at all.

The laws "vary" (are different) by state, but typically, the "lender" (the institution that made the loan, often a bank) has to provide written "notice" (information about) of "default" (failure to pay as required). There might be a series of two or three letters "advising" (informing) the borrower about the situation and the "potential consequences" (what might happen as the result of something).

When the bank is ready to repossess the car, it usually "turns to" (relies on; requests the help of) a "repossession company." A "repo man (or woman)" then goes out to the borrower's address and tries to repossess the car. The laws state that this must happen without a "breach" (violation) of the peace, but the borrower rarely "voluntarily" (willingly) gives up possession of the car, so the repo man must be creative.

The repo man cannot use "force" (physical power or violence), but he can take the car while the borrower is at work or sleeping. The repo man might have a "skeleton key" (a key that opens many locks) or a "duplicate key" (a copy of a key), or might just "hotwire the car" (start a car without a key, by connecting the electrical wires). The repo man can even take the car out of a "carport" (a covered area in front of or next to a home where cars are parked) or an open "garage" (building with a wide door where cars are parked).