Repossession is a real estate and financial term that is usually used to refer to a financial institution that takes back property that was pledged as collateral. Rental contracts are also subject to repossession, and when a person gets evicted from their home, their landlord repossesses the property. Repossession most often refers to homeowners who are in foreclosure because their monthly payments are in arrears. For example, you find your dream home and decide to make a purchase. For a long time, everything is going great, and then you lose your job. Because you can no longer afford the monthly mortgage payments, the lender files foreclosure papers, and you have to leave the home. When you leave and the lender takes back the property, this is repossession. The term can also be applied to any property that is used as collateral to secure a loan or financial obligation.