OAR 274-045-0140
Temporary Reduction of Payments


(1)

In the event a veteran is unable to make required loan payments due to loss of income because of illness, injury, death, involuntary job loss, or economic stress due to factors beyond the veteran’s control, the veteran may apply for a temporary reduction of payments provided that:

(a)

The veteran is the original borrower or one who assumed the loan pursuant to ORS 407.305 (Assumption of previous loan by eligible veteran);

(b)

The veteran is residing in the property used as security for the loan at the time he or she requests the payment reduction;

(c)

The veteran must request the loan reduction by writing to the Director of Veterans’ Affairs, c/o Collection Unit, 700 Summer Street, NE, Salem, Oregon 97301-1285. The written request must contain a statement describing the reason for the request, current income, source of income, and must be accompanied by a copy of the veteran’s previous two years’ federal income tax returns;

(d)

The veteran must furnish any other documentation requested by the Director relating to the reason for request.

(2)

In determining the amount and term for reducing loan payments, the Director shall consider the value of the security, the balance owing on the loan, the total assets of the borrower, past payment record of the borrower, and any other matters related to financial hardship to the borrower and the financial position of the loan program:

(a)

Monthly loan payments may not be reduced to an amount less than the monthly loan cancellation life insurance premiums and the escrow portion of the monthly payment, if applicable;

(b)

The Director may recapture the reduced portion of the monthly payment and any other accrued delinquency by whatever repayment methods are appropriate to individual circumstances;

(c)

The terms and conditions of the payment reduction and repayment must be agreed upon, in writing, and approved by both the veteran and the Director;

(d)

The veteran may be required to submit information periodically regarding his income and financial affairs in order to reevaluate the necessity of continuing the reduction in payments. Following such reevaluation, the Director may modify the loan payment reduction; and

(e)

The veteran must continue to reside in the loan security.

(3)

A veteran whose loan is in foreclosure is not eligible under this program.

(4)

Temporary reduction of loan payments is a benefit to be extended only in an extreme emergency and is not to be abused.

(5)

Because of the effect of these reductions on the solvency of the loan program as a whole, on the probable financial position of the program in the future, on the condition of the tax-exempt bond market, and on other borrowers in the program, the Director has determined that the maximum number of borrowers that can be accommodated under this program is approximately one percent of the total outstanding borrowers. Therefore, at any time, the Director will enter into agreements as provided in subsection (2)(c) of this rule with no more than one percent of the total loan portfolio, the number to be specified by the Director.
[Publications: Publications referenced are available from the agency.]

Source: Rule 274-045-0140 — Temporary Reduction of Payments, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=274-045-0140.

274–045–0001
Definitions for OAR 274-045-0001 to 274-045-0481
274–045–0005
Purpose and Objectives
274–045–0010
Eligibility Requirements
274–045–0015
Authority to Protect the Security
274–045–0020
Who May Apply for Loan
274–045–0025
Evidence Required to Establish Eligibility
274–045–0030
Modification of Application
274–045–0035
Cancellation of Application
274–045–0040
Security for the Loan
274–045–0045
Legal Description of Property Offered as Security
274–045–0050
Appraisal of Property
274–045–0060
Terms of Loan
274–045–0070
Interest
274–045–0080
Approval of the Loan
274–045–0085
Loan Funding
274–045–0090
Grounds for Refusing to Make a Loan
274–045–0100
Evidence of Title
274–045–0110
Escrow Closing of Loans
274–045–0120
Transfer of Ownership
274–045–0125
Rental
274–045–0130
Modification of Mortgage
274–045–0140
Temporary Reduction of Payments
274–045–0145
Loan Cancellation Life Insurance
274–045–0150
Property Tax Amortization and Escrow Accounting
274–045–0160
Partial Release of Security
274–045–0170
Confidential Nature of Information Submitted by the Borrower
274–045–0180
Confidential Nature of Information Procured by the Director
274–045–0190
Disclosure of Information and Fees
274–045–0200
Director’s Decisions Control in All Controversies
274–045–0205
Review of Loan Determinations and Other Decisions
274–045–0220
Fees
274–045–0230
Approved Lenders
274–045–0240
Loan Requirements
274–045–0250
Reservation of Funds and Commitments
274–045–0260
Title Insurance
274–045–0270
Hazard Insurance
274–045–0280
Flood Insurance
274–045–0401
Purpose and Objectives
274–045–0411
Definitions
274–045–0421
Interest Rate
274–045–0431
Approval of Veterans’ Home Improvement Loans
274–045–0441
Terms and Requirements of Veterans’ Home Improvement Loans
274–045–0451
Appraisal of Property
274–045–0461
Transfer of Ownership
274–045–0471
Taxes, Hazard Insurance and Flood Insurance
274–045–0481
Title Insurance
Last Updated

Jun. 8, 2021

Rule 274-045-0140’s source at or​.us