STATE OF «STATE» VA Loan Identification Number [«VALIN»]{.underline}

COUNTY OF «COUNTY»

PROMISSORY NOTE

For value received, and for the other and further consideration(s) as
recited in a certain Agreement of even date herewith which is annexed
hereto, in the manner, on the dates and in the amount herein stipulated,
the undersigned (hereinafter referred to as "Maker(s)") jointly and
severally promise(s) to pay to the order of the Secretary of Veterans
Affairs (hereinafter referred to as "Secretary"), the sum of
\$[«DEBT»]{.underline} in lawful and legal tender of the United States,
together with interest on the unpaid balance from the date of this Note
until maturity, payable as stated below:

1.  Interest Rate. Interest shall accrue on the principal and unpaid
    balance of the Note at the rate of [«INTEREST»]{.underline}% per
    annum prior to maturity, and after maturity, at the maximum rate
    permitted by law.

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2.  Payment. This Note consisting of principal and interest is due and
    payable as follows:

> In [«INSTALLMENTS»]{.underline} monthly installments of
> \$[«AMOUNT»]{.underline} each, with the first such installment being
> due on the [«DAY»]{.underline} day of [«MONTH»]{.underline},
> 19[«YEAR»]{.underline}, and with a like amount due on the same day of
> each month thereafter until paid in full. Payment shall be made to the
> Secretary at 6900 Almeda Road, Houston, Texas 77030-4200, or at such
> other address as the Secretary may designate.
>
> Any check, draft, money order or other instrument given in payment of
> all or any portion hereof and accepted by the Secretary shall be
> handled in collection in the customary manner, but the same shall not
> constitute payment hereunder or diminish any rights of the Secretary
> except to the extent that actual cash proceeds of such instrument are
> unconditionally received by the Secretary.

3.  Prepayment. Maker, at any time subsequent to the execution of this
    Note, shall have the right to prepay this Note without penalty, in
    whole or in part, at anytime, and in such amount as Maker shall
    desire and from time to time as Maker sees fit, prior to maturity.
    Interest shall immediately cease to accrue as of the date of said
    prepayment on any amount of the principal that is so prepaid. Any
    prepayment of the principal shall be credited to the payment of the
    installments last accruing under this Note. Prepayment of a part of
    this Note shall not affect the Maker's obligation to continue the
    regular payments stated herein.

4.  Default. If any payment shall remain unpaid for a period of
    thirty (30) days beyond the due date, this note may, at the
    Secretary's option and without further notice to Maker(s), be
    determined to be in default. Upon default the Secretary, as an
    officer of the United States of America, shall be entitled to
    enforce this Note by each of the remedies specified below. The
    enumeration of remedies herein does not limit the remedies available
    to the Secretary to enforce this Note.

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a.  Your name and account information may be reported to a credit
    bureau.

b.  Additional interest and penalty charges may be assessed for the
    period of time that payment is not made.

c.  Charges to cover additional administrative costs incurred by the
    Government to service your account may be assessed.

d.  Amounts owed to you under other Federal programs may be offset.

e.  Your account may be referred to a private collection agency to
    collect the amount due.

f.  Your account may be referred to the Department of Justice for
    litigation in the courts.

g.  If you are a current or retired Federal employee, your salary or
    civil service retirement benefits may be offset.

h.  Your debt may be referred to the Internal Revenue Service for offset
    against any amount owed to you as an income tax refund.

i.  Any written-off debt may be reported to the Internal Revenue Service
    as taxable income.

VA Loan Identification Number [«VALIN»]{.underline}

5.  Collection Fees. In the event of default by the Maker in the payment
    of this Note, or if this Note is placed in the hands of an attorney
    or agency for collection, regardless of whether or not suit is
    filed, or if the collection of this Note is made through a Probate
    Court or a Bankruptcy Court, or other appropriate legal proceedings,
    or after default this Note is placed in the hands of an attorney at
    law for collection, the undersigned promise(s) to pay all costs of
    such collection, including attorney's fees, if actually incurred,
    not to exceed 15% per annum of the amount owing on this Note,
    including principal and accrued interest, at the time of filing
    claim hereon or date of default, whichever is earlier.

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6.  Waivers. Maker(s) waiver(s) all demand for payment, presentment for
    payment, protest and notices of dishonor, notices of intention to
    accelerate, notices of acceleration, or any other form of notice.

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7.  Personal Liability. This Note shall be the joint and several
    obligation of Maker(s) and endorser(s), if any, and shall be binding
    upon them, individually and severally, their heirs, legal
    representatives, successors and assigns. The Maker(s) and
    endorser(s) do not waive all demands for payment, presentations for
    payment, protests and notices of protest, and do not agree the time
    of payment may be extended from time to time without notice and
    without releasing any of the parties.

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8.  Assignment. This Note and all rights and powers hereunder, together
    with the property so secured, if any, may be transferred and
    assigned by said Secretary at such time and upon such terms as said
    Secretary may deem advisable, and assignee shall succeed to all the
    rights and powers of said Secretary hereunder.

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9.  Not Assumable. This Note may not be assumed.

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10. Construction. This Note shall be governed by and construed under the
    laws of the State of [«STATE»]{.underline} and the laws of the
    United States of America.

In witness, whereof, the undersigned intending to be legally bound, has
executed this Note on the \_\_\_\_\_\_ day of \_\_\_\_\_\_\_\_\_\_\_,
19\_\_.

Mortgagor

Mortgagor

Mortgagors' New Mailing Address:

> VA Loan Identification Number [«VALIN»]{.underline}

STATEMENT AND AGREEMENT OF LIABILITY

FOR COMPROMISE CLAIM

I/We, [«NAMEs»]{.underline}, mortgagor(s), hereby acknowledge and state
that I/we am/are unable to continue to pay the Deed of Trust Note
monthly payments to [«MTGCO»]{.underline} on the Department of Veterans
Affairs (VA) guaranteed loan secured by the real property located at
[«PROPERTYADDRESS»]{.underline} and furthermore acknowledge that there
is or will be a total amount owing on the loan of
\$[«TOTALDEBT»]{.underline} as of [«DATESIGNING»]{.underline}. I/We have
had the property listed for sale for a period of time and have accepted
an offer to purchase from [«PURCHASER'SNAME»]{.underline}. I/We desire
to avoid foreclosure of the loan and the related consequences of a
possible adverse affect upon my/our credit record. I/We am/are desirous
of selling the property, but the purchase offer amount is insufficient
to satisfy my/our total obligation to the mortgage holder under the loan
instruments, including expenses allowable under the instruments and
pertinent VA regulations.

Therefore, I/we request that the Secretary of Veterans Affairs
(Secretary), as guarantor of the loan obligation, pay the difference
between the sales proceeds and the amount owing on the loan. The amount
to be paid by the Secretary is estimated to be
\$[«TOTALDEBT»]{.underline}. I/We request that the Secretary pay this
amount to the mortgage holder so that the sale can be consummated
thereby avoiding foreclosure of the loan.

I/We understand and agree that the satisfaction of the original mortgage
loan by the Secretary does not release my/our previous and subsisting
obligation to indemnify the Secretary for any amount paid to the
mortgage holder on my behalf. Said obligation is hereby restated and
confirmed. I/We further agree to execute a promissory note payable to
the Secretary in the amount of \$[«DEBT»]{.underline}. Said promissory
note is annexed to and made a part of this agreement.

I/We acknowledge that under the provisions of the United States Code,
entitlement to future VA loan guaranty benefits may be restored only
upon repayment of any amount paid to the mortgage holder by VA on
account of the termination of the loan.

I/We understand that I/we retain the right to subsequently request a
waiver of collection or compromise of the debt amount under 38 USC 3102
and 38 USC 1820.

Agreed to:

Mortgagor Social Security Number Date

Mortgagor Social Security Number Date