What should you do if you recently caught up on your payments to the bank and are ahead now by 1 payment but the bank has not yet called off the repossession?

WHY not? Have you asked them? Were they demanding the balance in full?? Have you beeen repoed before? Have you beeen repeatedly in default? Are you STILL in default? Do you have ins. coverage as required by the contract? Contact the lender ASAP.