How do repossessions work on the accounting side of things?

The bank doesn't want to repossess: the legal fees often aren't woth it for 20% of a 20 years ago pricse +interest.

They would rather you find a way to pay. If that doesn't happen, they often sell the debt to a bad debt specialist. They may look for a settlement (you pay an agreed amount, they write off the rest) or a mortgage to rent deal.

In essence the bank appoints a receiver.

The receiver sells the house.

Auctioneers and legal fees come out of the proceeds.

The Receiver gets paid next.

Then the bank get paid but only up to the point of their debts / interest / fees outstanding.

If there is anything left then it's returned to the borrower.

In most cases there won't be anything left.

Also bear in mind that if it's obvious that there is going to be enough to cover the banks debts, then the receiver is probably motivated to price it for a quick sale (to minimise their work) - market value but low enough to ensure it's not hanging around, and they will charge as big a fee as they can reasonably justify.

Generally if its obvious that there is something going to be left over, then the borrower and bank would work together so that the borrower sells the property voluntarily and repays the loan because that's in everyone's interest. The receiver is only appointed if the borrower refuses co-operate.

When you take out a loan, you agree to the terms of it, if you don't pay why would you as the borrower be entitled to anything if you break the loan agreement?

If you feel that way don't enter into the agreement with the people you believe to be "parasites".

When people are getting a mortgage it's made blatantly clear that if you fail to repay that your home will be repossessed.

It is the largest transaction most people will ever enter into in their life, if they're not aware of failure to pay they shouldn't be entering into it.

Good luck purchasing a property without one unless you're minted.

Sure.