What context can I use each word in?
Learn when and how to use these words with these examples!
foreclosure
Example
The bank initiated foreclosure proceedings on the house after the owner failed to make mortgage payments. [foreclosure: noun]
Example
The family lost their home due to foreclosure. [foreclosure: noun]
repossession
Example
The bank repossessed the car after the owner failed to make loan payments. [repossession: noun]
Example
The company had to repossess the equipment due to non-payment. [repossession: verb]
Good things to know
Which word is more common?
Foreclosure is more commonly used than repossession in everyday language, as it is a more well-known term due to its association with the housing market crisis. However, both terms are commonly used in legal and financial contexts.
What’s the difference in the tone of formality between foreclosure and repossession?
Both foreclosure and repossession are formal terms used in legal and financial contexts.
