The first step is to fill out an FTC Fraud Affidavit, from the Federal Trade Commission website. Repossession occurs when your lender seizes this asset because you defaulted on what you owe.Cars are the most commonly repossessed assets. In California, a vehicle can be repossessed if the borrower fails to meet their loan obligations or fails to make insurance payments. Second Chance Auto Loans Available from Victory Honda of Morgan Hill in the San Jose, Sunnyvale, or San Francisco Bay area. No Prior Written Notice Required. When you obtain a loan to purchase a vehicle the vehicle can be repossessed if you miss payments. I certify that I, or the firm, company, or corporation I am authorized to represent, am the legal owner within the meaning of California Vehicle Code. Our Nissan dealership in Santa Clara, CA offers Special credit financing assistance so you can take home that sleek Nissan model that has caught your eye. In this situation, a borrower takes out an auto loan and grants a lien to his lender.