Current through Register Vol. 63, No. 9, September 1, 2024
(1) When the Department sells a property
acquired under ORS
407.135 and
407.145(1),
the sale will be conducted under the provisions in ORS
407.375 and the following terms:
(a) The Department
must first offer the property by sealed bid.
(b) The Department must advertise and give
notice of the sale of the property in the local newspaper. at least once during
the 15 days prior to the bid opening.
(c) The notice shall advise prospective
buyers of the following:
(A) Of all the
bidders who are veterans for a home loan, the veteran who submits the highest
bid shall be given the opportunity to purchase the property for the amount of a
higher bid submitted by a person who is not a veteran and must submit a
matching bid in writing no later than 5:00 p.m. on the date and at the place
specified in the notification;
(B)
The opportunity to submit a matching bid is only available to a veteran
purchasing the property solely in his or her own name, or with a lawful
spouse;
(C) If the highest bid by a
non-veteran is not matched by an eligible veteran, the highest bid will be
accepted; and
(D) State the minimum
bid that will be accepted.
(2) When the Department sells a property
acquired under ORS
407.135 and
407.145(1),
the sale will be conducted under the provisions of ORS 407.377and under the
following terms:
(a) The person with whom the
Department has entered into a personal services contract to sell the property
must post a "for sale" sign on the property; and
(b) The property must be advertised for sale
at least once in a newspaper of general circulation where the property is
located.
(3) The
Director will determine interest rates for contract sales of ODVA properties
and may apply different rates of interest to different contract sales. The
Director may consider factors when determining contract interest rates,
including, but not limited to:
(a) The
current value of funds;
(b) The
projected value of funds;
(c) The
solvency of the Department's Loan Program;
(d) The rates' effect on veterans and other
purchasers;
(e) Any federal tax law
restrictions;
(f) Actual or
projected conventional mortgage rates;
(g) The availability of lendable
funds;
(h) Actual or projected
demand for ODVA properties;
(i) The
source(s) of funds; and
(j) Whether
or not the purchaser is providing any approved "work equity" as part of the
down payment on the contract.
(4) The Director may change the prescribed
rates of interest from time to time.
(5) The Department will endeavor to record
prescribed interest rates as reasonably as it is practical.
(6) After the original purchase from the
State of Oregon, each time ownership of the property is transferred to anyone
(veteran or nonveteran), other than the surviving spouse, unremarried former
spouse, surviving child, or surviving stepchild of the owner, the interest rate
from the date of such transfer shall be the same as the then-prevailing
interest rate under subsection (3)(a) of this section, or the existing interest
rate on the contract, whichever is higher;
(7) The Director may modify the terms of the
contract if agreeable to all parties.
(8) Each property will be sold on contract
unless the Director finds that in a particular transaction it would be in the
best interest of the Department that the property be sold on a Deed of Trust,
or for cash. The terms of all sales will be as follows:
(a) Length:
(A) The maximum length of the contract will
be established by the purchase price, as follows:
(i) $63,000 and over - 30 years;
(ii) $35,000-$62,999.99 - 25 years;
(iii) $15,000-$34,999.99 - 20
years;
(iv) $10,000-$14,999.99 - 10
years;
(v) Under $10,000 - 0 years
(Cash Out Only).
(B) The
Director may enter into a contract with terms different from the ones
prescribed in this rule if the provisions of ORS
407.375(6)
apply (no satisfactory bid received and sale negotiated).
(b) Down Payment:
(A) The term "purchase price" as used in this
rule shall mean the actual purchase price agreed to by the purchaser and the
Director;
(B) The minimum down
payment required will be established by whether the property will be
owner-occupied, whether the property is classified as farm, residential,
personal property, unique, unusual, or bare land, the asking price and the
purchase price, as follows:
(i) Residential -
Asking price less than $80,000 - Five percent down payment if owner-occupied,
otherwise 15 percent down payment. In cases where the purchase price is
different than the asking price, the percentage (five or 15) will be applied to
the purchase price;
(ii) Farm,
Manufactured Home with Land, Bare Land, Residential - Asking price $80,000 or
more - 10 percent down payment if owner-occupied, otherwise 20 percent down
payment. In cases where the purchase price is different than the asking price,
the percentage (10 or 20) will be applied to the purchase price;
(iii) Personal Property Manufactured- 20
percent down payment if owner-occupied, otherwise 30 percent down
payment;
(iv) Unique or Unusual
Property - The required down payment will be stated on the property description
sheet in an amount or percentage determined by the Director.
(9) A
purchase of property from the Oregon Department of Veterans' Affairs will not
be considered a loan under ORS
407.205.
(10) All purchasers must meet the
department's repayment ability requirements.
(11) If a prospective purchaser submits more
than one bid for the same property, only the highest such bid will be
considered.
(12) The property will
not be sold on contract to anyone who had an interest in the property at the
time foreclosure action was commenced or a deed-in-lieu of foreclosure was
accepted.
(13) A purchaser who
states that he or she will be occupying the property in order to pay a lesser
percentage of down payment or to receive approval of work equity must:
(a) Occupy the property within 60 days after
the sale closes; and
(b)
Continuously occupy the property as his or her principal primary residence for
a period of not less than 365 days from the date of closing or initial
occupancy, whichever is later.
(14) In the event purchaser fails to occupy
the property as stated, the Director may require cash payment of an additional
down payment. The required additional down payment will be the amount the
purchaser would have been required to pay if the property had been purchased as
nonowner-occupied, less any cash down payment received at closing.
Statutory/Other Authority: ORS
406.005 & 407.115
Statutes/Other Implemented: ORS
407.075 to
407.385;
Oregon Constitution Article XI-A, Section
3
