Repossession refers to the process of a lender taking possession of a property that has been used as collateral for a loan, when the borrower has defaulted on the loan. This can happen when a borrower has failed to make payments on their mortgage, car loan, or other type of loan, and the lender has the legal right to take possession of the property. Once the property is repossessed, the lender will typically try to sell it in order to recoup their losses.