If a lender is not paid and the collateral that secured the loan is taken, this is called garnishment bankruptcy foreclosure repossession

foreclosure and repossession

Explanation:

Both foreclosure and repossession are ways that a lender can use to reclaim property that was put as collateral for a loan. Depending on the type of loan and the type of property, the procedures might vary.

For example, if you do not pay your car loan, the lender can simply repossess your car by taking it away without a court order.

But it doesn't work the same for a mortgage. A mortgage loan that hasn't been paid must go through a foreclosure procedure that applies to real property only. Depending on the state, foreclosures can can be judicial or nonjudicial. In a judicial foreclosure, the lender needs a court order, while nonjudicial foreclosures require several legal steps to be carried out.

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