▁leg ally ▁own s ▁the ▁house , ▁but ▁until ▁the ▁mort g age ▁is ▁paid ▁off , ▁the ▁cred itor ▁has ▁the ▁right ▁to ▁take ▁ownership ▁( and ▁possibly ▁also ▁possession ) ▁but ▁only ▁if ▁the ▁deb tor ▁fails ▁to ▁keep ▁up ▁with ▁rep ay ments . ▁If ▁a ▁consumer ▁takes ▁out ▁an ▁additional ▁loan ▁secured ▁against ▁the ▁value ▁of ▁his ▁mort g age ▁( known ▁col lo qu ial ly ▁as ▁a ▁“ second ▁mort g age ”, ▁for ▁up ▁to ▁approximately ▁the ▁current ▁value ▁of ▁the ▁house ▁minus ▁out standing ▁rep ay ments ) ▁ ▁the ▁consumer ▁is ▁then ▁hyp othe c ating ▁the ▁mort g age ▁itself ▁the ▁cred itor ▁can ▁still ▁se ize ▁the ▁house ▁but ▁in ▁this ▁case ▁the ▁cred itor ▁then ▁becomes ▁responsible ▁for ▁the ▁out standing ▁mort g age ▁deb t . ▁Sometimes ▁consumer ▁goods ▁and ▁business ▁equipment ▁can ▁be ▁bought ▁on ▁credit ▁agre ements ▁involving ▁hyp othe cation ▁the ▁goods ▁are ▁leg ally ▁owned ▁by ▁the ▁bor ro wer , ▁but ▁once ▁again ▁the ▁cred itor ▁can ▁se ize ▁them ▁if ▁required . ▁ ▁In ▁the ▁financial ▁industry ▁The ▁most ▁common ▁form ▁of ▁hyp othe cation ▁is ▁a ▁repo ▁transaction : ▁the ▁cred itor ▁gives ▁a ▁loan ▁to ▁the ▁deb tor ▁and ▁receives ▁in ▁return ▁the ▁possession ▁( not ▁the ▁ownership ) ▁of ▁a ▁financial ▁asset ▁until ▁the ▁m atur ity ▁of ▁the ▁loan . ▁A ▁reverse ▁repo ▁is ▁a ▁hyp othe cation ▁' in ▁the ▁reverse ▁direction ': ▁cred itor ▁and ▁deb tor ▁swap