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#415383 - 08/29/05 02:17 PM deceased servicemember and cosigner
Anonymous
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A servicemember who was receiving the lowered interest on a loan was killed in action. His mother is a coborrower on the loan. Can we attempt to collect from her on the loan? Can the delinquency be reported to the credit bureau?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#415384 - 08/29/05 04:54 PM Re: deceased service member and cosigner
Don_Narup Offline

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As gruesome as this is yes, you can collect from the co-borrower. The service member has a death benefit which I believe was just raised to $100,000.

Yes, you can report it to the credit bureau BUT WHY your borrower is dead , he has no need for credit anymore. Besides it being a moral issue, which you don't want to get me started on, IMO its a waste of time to do so.

Why don't you just write a very sympathetic letter to his mother and gently ask how they intend to settle the sons obligation.

I have no idea what the balance owing is, but if its feasible for the bank to do, why not consider writing it off.
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#415385 - 08/29/05 07:00 PM Re: deceased service member and cosigner
HMS Pippii Offline
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If he was guard/reserve, the death benefit might be as high as $250,000.

That said - tread very, very gently. Headlines on the news or in the paper cost a lot more than a charge off.
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#415386 - 08/29/05 08:27 PM Re: deceased service member and cosigner
Andy_Z Offline
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I believe the SGLI is $250,000 now. And your contract likely calls the death of a borrower a default. This allows you to accelerate the debt, though you may not want to do that with the co borrower. And SCRA protections also end with the death of the servicemember. (I'm not trying to sound cold hearted here, just contractual.)
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#415387 - 08/29/05 10:11 PM Re: deceased service member and cosigner
HMS Pippii Offline
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Quote:

(I'm not trying to sound cold hearted here, just contractual.)



And that's why you're wearing a necktie and I'm just a little kitty cat...
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#415388 - 01/15/06 06:30 PM Re: deceased service member and cosigner
Jennifer R Offline
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Joined: Mar 2005
Posts: 10
Missouri
SGLI was recently increased to $400,000 automatically, unless the service member declined the increase. I believe this went into effect in September.

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