"To repossess the collateral" means to take back or reclaim the possession of an item or asset that was used to secure a loan or debt, typically because the borrower has failed to make required payments. Full definition
In regards to a consumer purchase, if a debtor is unable to provide the proper payments for their purchase, then the creditor can repossess collateral such homes and cars... (westgeest.com)
With secured debt, a creditor can often repossess the collateral if a consumer fails to make payments, and hence the interest rates are lower. (debtmerica.com)
Lenders price money more expensively when they can not easily repossess collateral. (growingfamilybenefits.com)