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#2225180 - 11/06/19 03:16 PM Personal Property Repossessions
It's not easy Offline
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Joined: May 2009
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I'm looking at our commercial process or lack thereof and have a couple of questions that I'm just not finding much discussion on. It's pretty clear that DMDC checks need to be done, but when it comes to foreclosure on commercial property (outside of the primary residence) is there any restrictions to foreclose? What about repossessions on farm equipment or vehicles used for the farm?

Also, how often do you perform checks on an account in default? Checks are performed on our Consumer loans every 30 days when in default, which the OCC liked but seems to be a bi much for our commercial area.

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2225399 - 11/08/19 11:22 PM Re: Personal Property Repossessions It's not easy
Andy_Z Offline
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3953 covers "real or personal property owned by a servicemember that--

(1) originated before the period of the servicemember's military service and for which the servicemember is still obligated; and

(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage."

3952 is similar but refers to real or personal property. One could argue that commercial equipment is not real property nor personal property but I fear the court decision a bank would need to clarify that would be expensive and in the end side with the servicemember based on the laws intended purpose and prior decisions applying commercial debt to the individual obligation of the servicemember personally.

https://www.bankersonline.com/regulations/scra-3953

As to the frequency of verification's, that's a business decision. It must be checked prior to taking action, but if the SM hasn't requested protections, the bank is not under an obligation to check every month, just before you seek certain remedies.
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