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#2222103 - 09/23/19 04:15 PM SCRA search after REPO?
CindyS Offline
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Oh, the frustration when you keep telling them and they keep forgetting!!!

I've been searching but can't find confirmation.

Loan officer did not do a DMDC SCRA search before Repossessing vehicles securing a loan. I know it would be a big problem if the customer was military, however I know him and know he isn't. My question is, to have something in file, is there anything prohibiting you from doing an SCRA search after the fact, like there is the rule against doing an MLA search after you close a loan?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2223005 - 10/03/19 09:40 PM Re: SCRA search after REPO? CindyS
Andy_Z Offline
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There is no SCRA prohibition. At this point it's too late to avoid the violation if one occurred, but you might be able to initiate damage control.
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#2223006 - 10/03/19 09:41 PM Re: SCRA search after REPO? CindyS
Andy_Z Offline
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I really have to add, there should be a required procedure on this so that the SCRA HAS to be checked prior to the repossession or a foreclosure.
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#2224120 - 10/22/19 02:26 PM Re: SCRA search after REPO? Andy_Z
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Similar situation, we have a property that was voluntarily surrendered to bank by borrower via an agreement for deed-in-lieu of foreclosure. An SCRA search was ran, but it was done after the deed-in-lieu agreement was executed and after bank moved the property into OREO. Borrower was not active duty (based on search), but would this be a violation of SCRA - since the search was done late?

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#2224285 - 10/23/19 08:23 PM Re: SCRA search after REPO? CindyS
Andy_Z Offline
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No harm - no foul, if the borrower wasn't protected. But you may have dodged a bullet because if the borrower was protected and later claimed they were not aware of their rights and were pressured to do this by the bank, it could be messy.

You should ensure procedures correctly put the status verification before taking the property.

I believe a title surrender is possible, but I'd want an iron clad, counsel reviewed statement from the borrower that they are aware of their rights under the SCRA and it is at their request that the bank take the property...
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