Repossession is generally used to refer to a bank or other financial institution taking back a property where the owner has been unable to pay the mortgage.

Repossession in Spain
Note that repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property back from the party having right of possession without invoking court proceedings.

Banks in Spain - repossessions
Several banks have taken over apartments, villas and even complete developments. So it is actually possible to find a new repossessed apartment or villa for sale at a reduced price.

Repossess rights for the buyer
In general there is no difference for the buyer regarding the sale of a repossessed villa or apartment compared to finding a normal property for sale in Spain. In any case you should always get proper legal advice before buying.

See distress sale