OAR 274-045-0120: Transfer of Ownership

(1) The Director shall be notified in writing of any transfer of ownership or the right to possess property that is used as security for a loan with the Oregon Department of Veterans' Affairs (ODVA). (2) The following are conditions that constitute a transfer of an ownership interest or the right to possess the loan security: (a) A borrower takes title to the property with a person other than his or her legal spouse; (b) Contract of sale; (c) Any deed transfer; (d) Any other indenture that purports to convey or transfer any portion of equitable title except for the following: (A) Deed to create a life estate retained by the eligible veteran mortgagor; (B) Deed to a government entity for public use as noted inORS 407.275(2); (C) A purchase option that extends for a period of 12 months and 32 days or more; (D) A purchase option with a consideration of three percent or more of the stated purchase price. (3) If any or all of the above referenced conditions in subsection (2)(a) through (d) occur to the security of an ODVA loan, the entire balance of the loan will be immediately due and payable. [Publications: Publications referenced are available from the agency.]