Borrower entered military service after car loan was closed. Loan became delinquent, there has been no contact from the borrower, and repo order was issued. During the search for the car, the Bank was informed that the borrower had entered military service. The info came from sources other than the borrower or the military, so we have no documentation of that fact. Can we complete the repo?
Thanks!
They don't have to notify you to be protected under the "stay" provisions of the SCRA. They only have to contact you if they want the rate reduction.
If you have knowledge the borrower "may" now be active military then you are highly advised to verify the information and then review the provisions of the SCRA and follow their requirements.
Posted By: Andy_Z
Re: Car repo - 06/03/11 02:23 PM
Two options to view, 1) SCRA doesn't mean they don't have to pay bills, you can still contact them. See if they want to pay for the car or give it up. 2) If they want to pay, ask for a pay allotment. They can have the funds go straight to you every month.
Especially if your borrower is a Marine, they don't get pay during basic training. It is a lump sum afterward. That could be a cause for the delinquency.