A typical example of a good repossession scenario can be pursue: Alice borrows $ten,000 from Bob and you can guarantees their own car since the equity. It indication a safety contract you to definitely states one Alice have a tendency to repay Bob from inside the monthly payments out of $500, and therefore Bob has the straight to repossess the automobile in the event that Alice misses one or two consecutive repayments. Alice fails to shell out Bob for three days. Bob hires an excellent repo representative to repossess Alice’s vehicle. The repo agent locates Alice’s vehicle parked to the a community highway and you may hooks it up so you can a pull truck. Alice observes so it and run off of their house, yelling and you may cursing from the Bob as well as the repo agent. She tries to go into their particular car preventing them from getting it away. The brand new repo representative phone calls law enforcement and you can pushes aside that have Alice’s automobile.

Contained in this example, Alice has actually defaulted on her behalf financing and Bob has resolved his to repossess their unique auto. [Read more…]