January 19,2001

Re: Loan #400014-001

Dear Mr. Meadors & Mrs. Dudnikov:

I am in receipt of your letter dated January 11,2001 and have attached a current budget showing the amounts paid. You should have a copy of this as it is included with your monthly statements.

The photographs I have of your property were taken by the inspector on the dates he inspected the progress of work based on your draw requests in October and November. The inspector only reviews work requested for payment on your draw, the items you are bringing up were not items payments was requested for. The inspector does not determine if a house is clean or dirty nor does he determine if the home is complete for a CO.

I have received copies of several of the letters you are circulating and have determined you are misrepresenting your conversations with me. I was concerned with your moving into this property before closing on your permanent mortgage and you informed me you were given permission from Grand West. As this is not normal I said I would confirm with them, which I did and was informed you were not given permission. At no time did I agree it was okay for you to move your property into the home, in fact we discussed the problems that would arise for you with your personal property should a foreclosure happen. Additionally, you never contacted me to request permission to change the locks on your home. You did contact me some time after the fact to tell me you did this but you never asked for permission to take this action.

Additionally, I have been informed of your new website and have forwarded the information you posted on to my attorney. I would suggest you remove mention of this company from your website as we feel your remarks are slanderous and defame this company.

Sincerely,

Monica A. Wasden
President