What is the difference between bank repossessions and default?

Question

In news they say:

bank repossessions rose by X%

defaults rose by Y%

and auctions rose by Z%

what is the difference between these three? I thought once default

occurs house is then repossessed by bank and then sold at an auction. No?

thank you.

Answer 1

I was a real estate agent and have been in the mortgage business for the last 12 years.

The difference is semantics.  People use terms incorrectly all the time, which confuses people, especially those who use them correctly.

Repossession refers to loans on personal property, like a loan on a car or furniture.  A house is foreclosed, not repossessed, although many people use the terms interchangeable.  They use the word title to refer to the warranty deed on their home, when in actuality a title exists on personal property, not real property.

Default means people have stopped paying their mortgages.  Property in default is property whose owners stopped paying.

Auctions mean that a lender or tax agency has foreclosed on property for non-payment and the property has been sold via bidding.

Answer 2

While not a real estate agent, my guess would be that repossession is the actual physical taking of a house (as in not letting you live there any longer); default is not paying the loans you have taken out to buy or fix or whatever back; and auctions are literally that: selling a house at whatever price the bank or realtor can get via auctions--"Sold for $90,000!"

Answer 3

Repossession affects personal property loans.  Your car loan is a good example of something that can be repossessed.  

Default means you stopped paying you mortgage. Property in default is property whose owners stopped paying.