ANDREW A. BENNETT 321 Harvard Street #401 Cambridge, MA 02139-2033 U. S. A. Tel: (617) 661-7068 Fax: (617) 661-7068 Isaac Bichachi Loan Processor American Finance and Investment, Inc. 8751 Broward Blvd. 5Th Floor Plantation, FL 33324 Tel: (800) 929-9556 X7535 Mortgage Addendum - Written Explanations This is a written explanation of items that may affect the mortgage application, as requested by American Finance. Title and closing lawyer: Martin Himmelfarb, Esq. Wolverton & Himmelfarb 8 Sandwich Road P.O. Box 387 Wareham, MA 02571 Tel: (508) 291-4000 Fax: (508) 291-4053 Other items: 1. Delinquent credit reflected with New Mexico Educational Assistance Foundation - My current status with NMEAF is satisfactory and shows no delinquencies (please see latest statement, attached). When contacted, they informed me that the delinquent credit notice was a clerical error and will be removed. They believe it may stem from a late payment from the time of the birth of my son. 2. Employment - As of January 4th, 1999, I am now an employee of IS Robotics: IS Robotics Twin City Office Center, Suite 6 22 McGrath Highway Somerville, MA 02143 Tel: (617) 629-0055 Fax: (617) 629-0126 My salary has increased to $7,500 per month. I have enclosed the offer letter and the company Personnel Officer (Mary Byron), President (Helen Greiner), or CEO (Colin Angle) will be happy to provide any additional employment information you may require. 3. Bank Statements - Two additional bank accounts have been added which were not on the original application. The first is at the Sandia Laboratories Federal Credit Union and the second is at the MIT Employee's Federal Credit Union. Two months' statements have been provided for both accounts. Copies of the BankBoston account statements, Money Market statements, and cashed deposit checks (one for $1,000 at the time of the offer, another of $30,000 at the time of the Purchase and Sale) are also included. The remaining $64,800 + 2 months' cash reserves can also be seen in the account statements. The withdrawal to Citibank on November 23rd and redeposit on November 27th were simply the result of bad timing. As of the end of November, we had been house hunting for approximately 7 months. My wife decided that we were unlikely to find a home she approved of any time soon, and so elected to transfer the money to a money market fund with a better yield. The following weekend we found the house at 26 Centre St. and so we promptly transferred the money back. 4. Additional funds - The Putnam funds, American Express funds, and AT&T stocks were not among the liquid assets. Statements have been included. 5. HUD-1 Settlement Statement - we had not yet placed our house on the market because I wanted to be sure that this mortgage will go through first. However, we have been informed that this will mean that the current mortgage payment will be deducted from our income. We would like to correct this situation as quickly as possible and so we have located someone to rent our current address until it is sold. The renter, one Jennie Donner, has agreed to pay $1,300 per month and has signed an agreement to this effect and which explicitly states that this rental will commence on February 1st if the sale of 26 Centre Street is satisfactorily concluded and will expire when the property is sold. She will give us a check for $3,600 to pay for first and last months' rent plus a $1,000 damage deposit, when the agreement is signed. Therefore, while the mortgage will still be a deduction of $1,145 per month, this will be offset by an additional income of $1,300 per month until such time as the property is sold. Copies of the bank check and rental agreement will be made available to you at your request. If there are any other outstanding issues of items required, please do not hesitate to contact me. Sincerely,