TRUSTEE'S SALE

At 10:00 o'clock A.M. on July 7, 2004, in the Office of First American Title Company, 419 North 2nd Avenue, Sondpoint, Idaho, First American Title Company, as Trustee, will sell at public auction, to the highest bidder, for cash, in lawful money of the United States, all payable at the time of sale, the following described real property, situated in Bonner County, Idaho, and described as follows, to-wit:

Lot 9, Block 5, Second Addition to Sourdough Point, according to the plat thereof, recorded in Book 3 of Plats, Page 19, records of Bonner County, Idaho

Information concerning the foreclosure action may be obtained from the Trustee, whose telephone number is (208) 785-5511. According to the Trustee's records, the street address of 320 Moonbeam Road, Sagle, Idaho, is sometimes associated with said property.

Said sale will be made without covenant or warranty regarding title, possession, or encumbrances to satisfy the obligations secured by and pursuant to the power of sole conferred in the Deed of Trust executed by Kelly Kearns, an unmarried man, as Grantor, First American Title Company, as Trustee, for the benefit and security of George F. Gauzza Jr. and Barbara Gauzza, husband and wife, dated February 10, 2003, recorded February 11, 2003, as Instrument No.618338, all records of Bonner County, Idaho.

The above Grantor(s) are named to comply with Section 45-1506(4)(a) Idaho Code. No representation is made that they are, or are not, presently responsible for this obligation.

The default for which this sale is to be made is the failure to:

(1) make the monthly installment of $523.78 due for the 10th day of November, 2003, and a like sum of $523.78 due on the 10th day of each and every month thereafter;

(2) comply with Paragraph A.4. of said Deed of Trust, to pay at least ten days before delinquency all taxes and assessments affecting said property. Real property taxes are delinquent for the first half of 2003, with penalty and interest accruing on the unpaid sum.

The principal balance is $54,779.43, together with interest thereon at 11.000% per annum in the amount of $2,294.74, and late charges owing of $100.00, all as of February 25, 2004, and accruing interest. All delinquencies are now due together with any late charges, advances to protect the security, and fees and costs associated with this foreclosure. The Beneficiary elects to sell or cause said property to be sold to satisfy said obligation.

DATED this 2nd day of March, 2004.

First American Title Company

By: Darlene Diehl-Nilsson,

Trust Officer

Legal SNP# 5104

April 9, 16, 23, 30, 2004

NOTICE OF APPLICATION