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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