Best Answer

Read your contract. It will tell you what default is. "Default" in leasing is when a Lessee fails to satisfy the conditions of the lease contract. Thus the lessee materially breaches the lease, and also usually when the lessee passes beyond the point of being able to remedy the breach as specified in the contract. Or, more simply, when the Lessee fails to live up to the lease contract and thus the lessor may take actions. "Repossession" is when a lessor acts to take back whatever property was leased. Terms for repossession are usually spelled out in the lease contract. Many lease contracts provide that when a breach occurs and the lessee is in default, the lessor may act to repossess the leased property. So the default may lead to repossession. But it is essential to study your contract and secure sound legal advice from a competent attorney in your jurisdiction to answer, "Can they take X away if I don't make my payments?"

User Avatar

Wiki User

โˆ™ 2007-12-05 14:41:15
This answer is:
User Avatar
Study guides


26 cards

What is forfeiture

Which of these is the best description of delinquency

Which term is defined as property that is pledged as security on a loan

This is Paula's monthly budget What percent of her expenses is spent on insurance

See all cards
1 Review

Add your answer:

Earn +20 pts
Q: Is default on a lease a repossession?
Write your answer...
Still have questions?
magnify glass
Related questions

What are the consequences of not making car payments?

If you do not make car payments you will default on your loan or lease. It will ruin your credit and end up with a repossession.

How does repo of a leased vehicle differ from repo of a financed vehicle?

NO, a lease is simply a contract like a loan. DEFAULT of either calls for repossession.

What happens if i can pay for my lease?

Er, then you can pay for it? ;) Seriously, though, since this was asked in category Repossession, I'm assuming that a notice of repossession has been sent out and/or the property has already been repossessed pusuant to a default or breach on a lease agreement. If whatever was leased was repossessed according to the terms of the lease or as the law allows, the Lessor would be under no obligation to re-lease or return the property just because you now have the money to satisfy the obligation. A breach for default effectively ends your lease. That said, your lessor may be willing to entertain continuing your lease or initiating a new lease. But that would be utterly at the lessor's discretion. If you have only received notice of repossession, your lease terms may still be active. A call to your lessor would clear up their position quickly. Either way, read your lease and pay close attention to what it says about default or breach of your lease, and especially if there are any time limits between breaching your lease and applying a remedy. It could turn out that your lease says something like you have 30 days following the breach to repair it before any action can be taken towards repossession.

Is a lease repossession the same as a purchase repossession?

About the same. Don't make your payments and they will come get it. Then you still owe the difference as stated on the contract.

What is a default?

A default is when someone does meet the terms on an agreement. When it comes to repossession, it means they missed 1 or more payments on a loan.

What is the concept of repossession about?

Is is common knowledge that the concept of repossession is the taking back of property by a lender or seller from the borrower or buyer, usually due to default.

What is default lease period for DHCP Server?

8 Days

When the borrower agrees to a voluntary repossession but their mother contests the action is that a wrongful act of repossession?

No, if the vehicle is subject to repossession due to a default in the lending agreement, it is irrelevant whether or not the parent agrees to the action.

What happens when your leased vehicle is repossessed?

READ your lease contract. It should specify the results of repossession.

What is the lease repossession law in MD? Contact them, they are very helpful....

What is the default lease duration of a wired subnet type?

Eight days

Can a default payment amount stop repossession?

No, once the loan is in default, the only way to assure that you keep your stuff is to pay off the loan in full.

People also asked