Jula Ansotegui and Aitor Ansotegui

Hillis Clark Martin & Peterson P.S.

Pursuant to O.R.S. 86.705, et seq. and O.R.S. 79.5010, et seq.

Reference is made to that certain trust deed made, executed, and delivered by Jula Ansotegui and Aitor Ansotegui, husband and wife, as Grantor, to Land Title Company of Grant County, as Trustee, to secure certain obligations in favor of Republic Mortgage Corporation, as Beneficiary, dated October 6, 1997, and recorded on October 10, 1997, in the Mortgage records of Grant County, Oregon, under file No. 972071. The beneficial interest under said Trust Deed and the obligations secured thereby are presently held by Oregon Housing and Community Services Department, State of Oregon by assignment of deed of trust recorded on October 10, 1997, in the Mortgage records of Grant County, Oregon under file No. 972072. Said Trust Deed encumbers the following descried real property situated in said county and state, to-wit;

Lot 7 of BRENT'S ADDITION TO THE CITY OF JOHN DAY, Grant County, Oregon, as shown by the plat thereof on file and of record in the office of the clerk of said County and State of Book 1 of Town Plats, at Page 17;

The street address or other common designation, if any, of the real property described above is purported to be: 307 South Canyon Boulevard, John Day, Oregon 97845.

The undersigned Trustee disclaims any liability for any incorrectness of the above street address or other common designation.

Both the beneficiary and the trustee have elected to sell the said real property to satisfy the obligations secured by said trust deed and a notice of default has been recorded pursuant to Oregon Revised Statutes 86.735(3). The default for which foreclosure is made is grantor's failure to pay when due the following sums:(1) Monthly payment of $529.52 due on December 1, 2003: $529.52; (1) Late Charge of $16.52, due on each payment not paid within 15 days of its due date, for monthly payment due on December 1, 2003: $16.52; (7) Monthly payments of $545.93 due from January 1, 2004, through July 1, 2004: $3,821.51; (6) Late Charges of $16.52, due on each payment not paid within 15 days of its due date, for monthly payments due on January 1, 2004 through June 1, 2004: $99.12; Advances by Lender: Attorneys' Fees and Costs for related Bankruptcy Action: $953.08; Sub-Total of Monthly Payments, Late Charges, and Advances in arrears: $5,320.63.

ALSO, if you have failed to pay taxes on the property, provide insurance on the property or pay other senior liens or encumbrances as required in the note and deed of trust, the beneficiary may insist that you do so in order to reinstate your account in good standing. The beneficiary may require as a condition to reinstatement that you provide reliable written evidence that you have paid all senior liens or encumbrances, property taxes, and hazard insurance premiums. These requirements for reinstatement should be confirmed by contacting the undersigned Trustee.

By reason of said default, the beneficiary has declared all sums owing on the obligation secured by said trust deed immediately due and payable, said sums being the following: UNPAID PRINCIPAL BALANCE OF $59,314.21, AS OF NOVEMBER 1, 2003, PLUS, FROM THAT DATE UNTIL PAID, ACCRUED AND ACCRUING INTEREST AT THE RATE OF 6.250% PER ANNUM, PLUS ANY LATE CHARGES, ESCROW ADVANCES, FORECLOSURE COSTS, TRUSTEE'S FEES, ATTORNEYS' FEES, SUMS REQUIRED FOR PROTECTION OF THE PROPERTY AND ADDITIONAL SUMS SECURED BY THE TRUST DEED.

WHEREFORE, notice hereby is given that the undersigned trustee will, on December 3, 2004, at the our of 10 a.m., in accord with the standard of time established by ORS 187.110, at the front entrance of the Grant County Courthouse, 205 South Humbolt Street, City of Canyon City, County of Grant, State of Oregon, sell at public auction to the highest bidder for cash, the interest in the said described real property which the grantor had or had power to convey at the time of the execution by him of the said trust deed, together with any interest which the grantor or his successors in interest acquired after the execution of said trust deed, to satisfy the foregoing obligations thereby secured and the costs and expenses of sale, including a reasonable charge by the trustee.

Notice is further given that any person named in ORS 86.753 has the right, at any time prior to five days before that date last set for the sale, to have this foreclosure proceeding dismissed and the trust deed reinstated by payment to the beneficiary of the entire amount then due (other than such portion of the principal as would not then be due had no default occurred) and by curing any other default complained of herein that is capable of being cured by tendering the performance required under the obligation or trust deed, and in addition to paying said sums or tendering the performance necessary to cure the default, by paying all costs and expenses actually incurred in enforcing the obligation and trust deed, together with trustee's and attorney's fees. Notice is also given that any person named in ORS 86.753 has the right to bring a court action to assert the non-existence of a default or any other defense to acceleration and sale.

In construing this notice, the masculine gender includes the feminine and the neuter, the singular includes the plural, the word "grantor" includes any successor in interest to the grantor as well as any other person owing an obligation, the performance of which is secured by said trust deed, and the words "trustee" and "beneficiary" include their respective successors in interest, if any.

THIS COMMUNICATION IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION WILL BE USED FOR THAT PURPOSE. UNLESS YOU NOTIFY US WITHIN 30 DAYS AFTER RECEIVING THIS LETTER THAT YOU DISPUTE THE VALIDITY OF THE DEBT, OR ANY PORTION OF IT, WE WILL ASSUME THE DEBT IS VALID. IF YOU NOTIFY US, IN WRITING WITHIN 30 DAYS AFTER RECEIPT OF THIS LETTER THAT YOU DO DISPUTE THE DEBT OR ANY PORTION OF IT, WE WILL PROVIDE VERIFICATION BY MAILING YOU A COPY OF THE RECORDS. IF YOU SO REQUEST, IN WRITING, WITHIN 30 DAYS AFTER RECEIPT OF THIS NOTICE, WE WILL PROVIDE YOU WITH THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR IF DIFFERENT FROM THE CURRENT CREDITOR.

THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

DATED this 13th day of July, 2004.

JOSEPH A. SAKAY,

Successor Trustee

Oregon Bar #021734

c/o Hillis Clark Martin & Peterson, P.S.,

1221 Second Avenue, Suite 500

Seattle, Washington 98101-2925

Telephone: (206) 623-1745

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