DECLARATION OF DEFAULT AND DEMAND FOR SALE

Please prepare and record a Notice of Default based on the instructions below:

1. Default exists because payment has not been made of = (choose one):

= A. ___ the installment(s) due: (date) __________________________ and subsequent installments; OR

= B. ___ the entire principal balance= which became due: (date) &= nbsp; = , including interest from

= (= date) __________________ with a daily interest rate of $ _______________________;= OR

= C. ___ other: ___________________________________________________________________ &nb= sp; =

2. <= /span>The unpaid principal balance of the loan is: $ ________________________________________= &nb= sp; <= /span>

3. Installments of interest and principal due owing as = of this date are $ &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; , with interest at = ; &n= bsp; % per annum and is currently paid to: (date) = &= nbsp; &nbs= p; .

4. <= /span>Is rate variable? ___ Yes ___ No (If yes, please pr= ovide accrued interest and/or payment schedule)

5. <= /span>Late charges owing: = ; prior to default: $ &nb= sp; = &nb= sp; &= nbsp; after default: $ __________________

6. <= /span>Have you accepted partial payment on any installment due since default occurred? ___Yes ___ No

If yes, amount: $ &= nbsp; &nbs= p; &= nbsp; &nbs= p;

7. Have you advanced monies for any of the following delinquencies? If yes, please indicate the date and amount of the advance(s) and attach receipts evidenci= ng the advance.

Senior Deed of Trust = &nb= sp; Date: &nbs= p; &= nbsp; &nbs= p; Amount: $ &= nbsp; &nbs= p; &= nbsp; &nbs= p;

Property Taxes &n= bsp; = ; = Date: &nbs= p; &= nbsp; &nbs= p; Amount: $ &= nbsp; &nbs= p; &= nbsp; &nbs= p;

Insurance &= nbsp; &nbs= p; &= nbsp; Date: &nbs= p; &= nbsp; &nbs= p; Amount: $ &= nbsp; &nbs= p; &= nbsp; &nbs= p;

Other &nbs= p; &= nbsp; &nbs= p; Date: &= nbsp; &nbs= p; Amount: $ &= nbsp; &nbs= p; &= nbsp; &nbs= p;

The amount required to reinstate/pay off the loan as of the date of this Declaration is: $ &= nbsp; &nbs= p; &= nbsp;

Is the present record owner, to your knowledge, = in the military service? &nbs= p; ___ Yes ___ No<= /p>

Was the loan principally negotiated in Spanish or any other foreign language? &nbs= p; ___ Yes ___ No=

Do you have any knowledge of a bankruptcy being filed? &= nbsp; &nbs= p; &= nbsp; ___ Yes ___ No

Property Address: = = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; =

&= nbsp; &nbs= p; &= nbsp; &nbs= p; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; =

Current or last known addresses of Trustor(s) listed on Deed of Trust: <= /span>

= &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; = &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp;

Which of your contact details as the beneficiary should we put on the Notice of Default (a publicly-recorded doc= ument)?

Company Name: &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = Phone No: <= u> &= nbsp; &nbs= p; &= nbsp;

ATTN: = &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; =

Address: &= nbsp; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; =

= &nb= sp; &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; =

Is the property secur= ed by the deed of trust: ___ commercial, ___ vacant land, ___ non owner-occupied residential,

___ owner-occupied residential, ___ mixed use, = ___ other ____________________________= ____________

IMPORTANT: To assist us in complying with Section 2923.5 of the California Civil Code:=

1) Is the subject prop= erty residential owner-occupied? &nb= sp; = &nb= sp; ___ Yes ___ No<= o:p>

2) Was the loan origin= ated in the years 2003, 2004, 2005, 2006 or 2007? &n= bsp; ___ Yes ___ No<= o:p>

Only if you answered yes to both question= s, this loan might be subject to Section 2923.5, please check one of the following:

___ &= nbsp; I declare that I contacted the borrower and fulfilled the requirements of Sec= tion 2923.5(2) et seq.

___<= span style=3D'mso-tab-count:1'> I declare t= hat I was unable to contact the borrower and instead performed the due diligence required by Section 2923.5(a)(2) et seq.

___ &= nbsp; I declare that I am not required to contact the borrower nor perform due diligence to contact the borrower as this loan is subject to an exemption listed in Section 2923.5(h), namely (select one):

&nbs= p; ___ The borrowe= r has surrendered the property to me;

&nbs= p; ___ The borrowe= r has contracted with a company that seeks to extend the foreclosure process

and avoid their contractual obligations to beneficiaries; or

&nbs= p; ___ The borrowe= r has filed bankruptcy and the proceedings have not been finalized.

The undersigned, as Beneficiary or Beneficiary’s representative, (“Beneficiary”) hereby makes the following representations, eac= h of which is material to and will be relied upon by Foreclosure Resources, Inc., (“FRI”) in performing the services as Trustee:

1) = That a default has occ= urred on the subject loan and that the reason for the default, the specific amoun= ts and terms causing said default, and all other information about the loan ha= ve been accurately relayed to FRI on this form and that, as a result of such default, the undersigned, makes this Declaration of Default and elects to c= ause the trust property to be sold to satisfy the obligations secured by such De= ed of Trust.

2) = That Beneficiary has no knowledge of any bankruptcy proceeding affecting the trustor or successor o= wner of the subject property, and Beneficiary will immediately inform FRI in wri= ting of any knowledge or notice of any such proceeding subsequently received.

3) = That, to the best of Beneficiary’s knowledge and belief, the present owner of the subject property is not entitled to the benefits of the Soldier’s and Sailor’s Civil Relief Act of 1940, as amended.

4) = That Beneficiary will immediately inform FRI in writing of any further advances made.<= /span>

5) = That Beneficiary has provided to FRI all known mailing addresses for current property owners and= /or trustors on this form.

6) = That Beneficiary has complied with all notification provisions as may be applicable to this loan= .

7) = That Beneficiary has possession of all original documents and, if not tendered herewith, will produce them upon demand.

Trustee-= Beneficiary Agreement

In initiating foreclosure against that certain Deed of Trust referenced above,= the undersigned beneficiary agrees to the following:

(1) Not accept any payments from the Trustor either partial or in full and if a= ny such payment is tendered by mail I will immediately return same to the Trus= tor. It is understood that acceptance of any payments after commencement of foreclosure activity can void the pending foreclosure and that if any such payments are accepted, all fees then due FRI will become immediately due and payable.

(2) Notify all collection agencies and loan servicers working on my behalf to refuse further payments on this account.=

(3) I understand that FRI requires an advance deposi= t of fees in the amount of $500.00 and will include said amount with the signed Notice of Default and Substitution of Trustee. I further understand that I = am at all times responsible for all charges and fees incurred, over and above = said initial deposit, in this foreclosure proceeding. I understand that approximately three months after the filing of the Notice of Default and pr= ior to filing a Notice of Sale, I will be asked to advance all estimated foreclosure fees and expenses, minus any prior deposit. If I am unable or unwilling to proceed with the foreclosure at that stage, I agree to tender = all foreclosure fees and costs then due FRI within 15 days of demand for same. = Should I fail to remit payment within 15 days of demand, I agree to pay a collecti= on fee equal to the greater of $100 or 5% of the total trustee’s fees and costs then owing and interest on total trustee’s fees and costs at the rate of 7% per annum.

(4) Should the trustor either file bankruptcy or initiate a lawsuit naming FRI as a party, the beneficiary agrees to tender = all foreclosure fees and costs then due FRI within 15 days of demand for same. I understand that a failure by me to satisfy any outstanding bill will result= in the suspension of the foreclosure proceeding and FRI shall have no obligati= on to in any way proceed with the foreclosure proceeding until such billing is satisfied, or other arrangements are made.

(5) Should the trustor initiate a lawsuit which incl= udes FRI in its capacity as Trustee under the above Deed of Trust, I further agr= ee to defend FRI. This provision= does not apply to lawsuits or actions based upon allegations of FRI’s will= ful or gross negligence.

(6) I agree to hold FRI harmless from any damages wh= ich may be suffered by my acceptance of a Deed in Lieu of Foreclosure. I understand that if I choose to a= ccept a Deed in Lieu of Foreclosure, I will remain liable for the fees and costs = then due FRI.

(7) In the event it is determined by FRI or a court = of competent jurisdiction that FRI improperly performed or failed to perform a= ny services required of them hereunder or under applicable law, the liability = of FRI to any party whatsoever shall be and hereby is limited to re-performing= or performance of such services. In each foreclosure conducted by FRI, any obligation to re-perform or perform services shall terminate upon the date = of recording a Trustee’s Deed Upon Sale in connection with such foreclos= ure.

(8) In the event I sell any or all of my beneficial interest in this Note and/or security instrument, I understand and agree that the liability for payment = of all fees and costs incurred with FRI shall remain with me and does not carry forward to any new owner of the Note. I agree to pay such fees and costs wh= en such transfer of beneficial interest is made.

(9) If a lien senior to my lien position goes to foreclosure sale and my equita= ble interest is lost, I agree to pay all fees and charges due FRI against this foreclosure at that time.

(10) Should FRI deem it necessary to hire a collecti= on agency or attorneys to collect outstanding fees and charges against me, I a= gree to pay any and all charges for such services. In the event a lawsuit is bro= ught to enforce all or a part of this agreement, I agree that the prevailing par= ty in such litigation shall be entitled to their reasonable attorney’s f= ees and costs. This Agreement sha= ll be interpreted and construed according to, and governed by the laws of the Sta= te of California. Any dispute arising under or in connection with this Agreement shall be subject to the exclusive jurisdicti= on of the state and/or federal courts located in San Diego County, California= .

(11) By signing this Trustee-Beneficiary Agreement, I fully understand that FRI, from initiation until the end of any relationship hereunder, is not giving me tax or legal advice. If I should not understand anything about the legal effects or tax implications of any aspect of this non-judicial foreclosure, I should consult the advice of an attorney or tax specialist.

(12) FRI provides services as Trustee pursuant to California Civil Code §29= 24 et al. FRI cannot and will not provide services that municipalities, counti= es or other jurisdictions may require above and beyond the requirements of §2924. These include, bu= t are not limited to, inspection of the subject property, registration of the sub= ject property/notice of default or any other document with the municipality/coun= ty/jurisdiction, maintenance of the property, posting of documents on the subject property, etc. The Beneficiary hereby a= grees to hold harmless and indemnify FRI for any costs, fines, fees, penalties, e= tc. that might be levied against FRI by a municipality, county or other jurisdiction.

I hereby certify that I have read and understand this Agreement. I also certi= fy that I am the Beneficiary or the authorized representative and agent of all= the Beneficiaries under the subject deed of trust and, as such, have legal authority to commit each Beneficiary to the payment, jointly and severally,= of the total charges, costs and expenses to perform the foreclosure.

Company Name (if any):             =             &nb= sp;            =             &nb= sp;

        &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;            &= nbsp;           &nbs= p;

Name:

Title (if any):

Date:         &= nbsp;           &nbs= p;            &= nbsp;