FOCUS MANAGEMENT OF N.C.

Homeowners Association Management
P.O. Box 11015, Charlotte, NC 28220

January 5, 2001

To All Hampton Ridge Homeowner Association Members

REASON: PAST DUE ASSESSMENT ACCOUNTS

The Board of Directors of your Homeowners Association has requested that we clarify and advise all members of the Association of newly established collection procedures for all past due accounts, effective immediately.


(1.) WARNING LETTER
(2.) LIEN
(3.) FORECLOSURE HEARING
(4.) FORECLOSURE SALE

The N.C. Planned Community Act effective January 1, 1999, allows a Homeowners Association to proceed directly from the filing of a lien to foreclosure of a home for any amount owed the Association that is 30 days past due. Your Board has directed that this procedure be instituted in the case of all delinquent accounts of Hampton Ridge. As also directed in this Act, all attorneys expenses relative to these procedures will be paid by the delinquent Homeowner. Please note as an example, upon filing a lien, the delinquent homeowner automatically becomes responsible for the cost of filing the lien which is currently $145. The Board has retained Tim Sellers as general counsel with Sellers, Hingham, Ayers, Dutch & Lyons PA to handle all collection matters.

Therefore:

All delinquent Hampton Ridge Homeowners will receive (1) Warning Letter from Focus Management. (These have been mailed.) Effective with the first late payment, a late fee of $20 will accrue monthly until the homeowner account is considered current.

The letter allows ten (10) days for payment in certified funds, directly to Focus Management.

(2) If payment is not received within the ten (10) day period, outstanding assessments will be handed over to the attorney and automatically filed.

The delinquent Homeowner will be notified of the filing of the lien, and given ten (10) days to clear the lien.

If payment is still not received, a (3) foreclosure hearing will automatically be scheduled. (4) Foreclosure sale follows the hearing.

From start to finish, the process normally takes 60 days to move from Demand letter to Foreclosure Sale. For present Hampton Ridge outstanding accounts, this process has now begun. Please be aware that due to a lack of follow-up on outstanding assessments with our prior management company, the Board has been forced to take a more aggressive approach with collecting outstanding dues.

Sincerely,


FOCUS MANAGEMENT

For the Board of Directors of Hampton Ridge Homeowners Association


Charlotte, North Carolina
(704) 895-3200
Fax: (704) 895-3209
E-Mail FocusM@FocusUSAInc.com