We have a loan to a servicemember that is not being paid. We went to inspect our collateral and found that a large item is missing. The family says they spoke to a lawyer and were told they did not have to pay us and would not tell us where the item is.
Can we do anything about this right now?

Contact counsel. To repossess/foreclose or pursue any judicial action you need someone who understands what you want and what is possible with SCRA protections in place. The SM is not entitled to not pay at all nor to dispose of collateral.

You have rights, but with SCRA protections you have one arm tied behind your back. You need to get to the bottom of this. Your customer may be unaware of what is happening. So communication is important too.