We have a loan signed by mom (and only mom) that is now past due and is heading towards a repossession. Title and proof of insurance are both solely in her name. In discussions with mom, we are finding out that this car was purchased for her son who is in the military because while he was stationed overseas his credit was ruined and he had no way to buy a car. In looking at the history, we can see ACH and bill payments have been coming from the sons account at a different institution. Mom has even gone so far as to change all the contact information on the account in online banking to sons email, phone number, etc.. Mom is also saying, it's not my car... he's not being a good adult...

However, learning that he is a servicemember... we are wondering if we have any issues with SCRA (especially since the car would normally be heading toward repossession). Even though mom signed all the loan docs, her intent was for the son to have the car.

Even if it's not a black and white SCRA issue, would you be concerned that it could turn into a reputational risk... or any protections extended to family... or who possessed the vehicle?

They have not mentioned SCRA or asked for rate reduction. We are simply asking based on the information provided within the communication about the debt.

I treat this as a non-covered loan since the borrower is not a servicemember or a dependent of a servicemember.

You can certainly have reputation issues, but it is not a covered loan nor a covered borrower.

Mom all but sold mortgaged property and I dare say the son's credit wasn't ruined because he was overseas, but because he didn't pay his debts. Mom put son in charge of this loan - same result except her credit score is now dropping.

Does mom realize SHE is on the hook for the payments, deficiency and fees?