In order to comply with HUD's ML 00-26 to the extent possible, Safeguard would like to institute the following procedures to be followed by its contractors on all evictions.

SPI contractors that are assigned an eviction order will be required to inspect the property 72 hours prior to the scheduled eviction date (if notified by the client prior to 72 hours of the scheduled eviction) and attempt to verify the occupancy status of the property.

The contractor will be required to report the same day and verify one of the following conditions:

Occupied: Verified via visible personal property.

Vacant: Verified via the property being visibly open and accessible and no personal property inside the house.

Undetermined: Property is secure but occupancy cannot be verified due to it being unknown whether personal property remains in the house.

The following procedure is to be followed by the SPI staff upon receipt of the information.

Occupied: Advise the client that the property is occupied either by persons or personal property and proceed with the scheduled eviction.

Vacant: Advise the client that the property is vacant and does not contain personal property and the eviction can be canceled. The contractor will then cancel the eviction crew and avoid a show up charge. The client will be asked to advise whether the property should be immediately placed in convey condition.

Undetermined: Advise the client that we were not able to verify whether the property is occupied or vacant and recommend to continue with the eviction.

The fee for this Pre-eviction inspection will be as set forth in HUD ML 00-26.

Please let us know of any changes you may require.

Please see the HUD ML 00-26 Memorandum attached hereto for comment on additional changes.

Thank you for your input and cooperation.

Robert