Reference is made to that certain Trust Deed made by Dawn M. Krebs, as grantor(s), to Land Title Company of Grant County, as Trustee, in favor of Mortgage Electronic Registration Systems, Inc., as beneficiary, dated 06/29/2006, recorded 07/07/2006, in the mortgage records of Grant County, Oregon, as Recorder’s fee/file/instrument/microfilm/reception Number 20061546, covering the following described real property situated in said county and state, to wit:

LEGAL DESCRIPTION

Lots 17 and 18 in block C of PROPHET ADDITION to the Town of Canyon City, 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 in Book 2 of Town Plats, at pages 11-12.

ALSO, that portion of Highline Drive, vacated by Ordinance No. 129 of the Town of Canyon City, recorded April 26, 1955, in Deed Book 72, page 207, and by Ordinance No. 162 of the Town of Canyon City, recorded December 19, 1974, in Book 112, page 465, described as follows:

Beginning at an iron pin which is 11.00 feet West of the platted Northeast corner of Lot 18 in said Block C;

thence S88°21’W, along the North line of said Lot 18 and said North line extended, 105.20 fee to the TRUE POINT OF BEGINNING;

thence S1°39’E to a point that is S88°21’W, of the platted Southwest corner of said Lot 17 in said Block C;

thence N88°21’E to the platted Southwest corner of said Lot 17;

thence N1°39’W, along the platted West lines of Lots 17 and 18 in said Block C, 120.0 feet to the platted Northwest corner of said Lot 18;

thence S88°21’W, to the TRUE POINT OF BEGINNING.

SAVE & EXCEPT the Easterly 11.0 feet of said Lots 17 and 18, Block “C”.

(Tax Acct. 3-2 13-31-35AB 1401; Ref.1354)

PROPERTY ADDRESS:334 INLAND DRIVE

CANYON CITY, OR 97820

Both the Beneficiary and the Trustee have elected to sell the real property to satisfy the obligations secured by the Trust Deed and a notice of default has been recorded pursuant to Oregon revised Statutes 86.735(3); the default for which the foreclosure is made is grantor’s failure to pay when due the following sums: monthly payments of $650.21 beginning 01/01/2008; plus late charges of $25.18 each month beginning with the 01/01/2008 payment plus prior accrued late charges of $24.33; plus advances of $0.00; together with title expense, costs, trustee’s fees and attorney’s fees incurred herein by reason of said default: and any further sums advanced by the Beneficiary for the protection of the above described real property and its interest therein.

By reason of said default the beneficiary has declared all sums owing on the obligation secured by the trust Deed immediately due and payable, said sums being the following to wit: $78,485.36 with interest thereon at he rate of 6.5 percent per annum beginning 12/01/2007 until paid, plus all accrued late charges thereon together with title expense, costs, trustee’s fees and attorney’s fees incurred herein by reason of said default; and any further sums advanced by the Beneficiary for the protection of the above described real property and its interests therein.

WHEREFORE, notice hereby is given that, RECONTRUST COMPANY, the undersigned Trustee will on Friday, September 12, 2008 at the hour of 10:00 AM in accord with the standard of time established by ORS 187.110, at the following place: outside that main entrance to the Grant County Courthouse, 201 S. Humbolt Street, in the city of Canyon City, County of Grant, State of Oregon, sell at public auction to the highest bidder for cash the interest in the described real property which the grantor had or had power to convey at the time of the execution by grantor of the Trust Deed, together with any interest which the grantor or grantor’s successors in interest acquired after the execution of the 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 the 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 the Trustee’s and attorney’s fees not exceeding the amounts provided by ORS 86.753.

In construing the notice, 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.

Dated April 30, 2008

RECONTRUST COMPANY

Julia Evans, Team Member