OFFICE OF THE US TRUSTEE REGION 10 MONTHLY STATEMENT OF CASE For the month ended September 30, Royal Haven Builders, Inc/Eric H.

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1 OFFICE OF THE US TRUSTEE REGION 10 MONTHLY STATEMENT OF CASE For the month ended September 30, 2004 Debtor Name : Case Number: Royal Haven Builders, Inc/Eric H. Tauer AJM-11 and JKC-11 Narrative update since August 31, 2004 report CASE ADMINISTRATION We had 49 property closings in September for a total of $ 1,207,100 in property sales the bulk of the sales were related to a bulk lot deal closing on 42 lots. This brings the total closings as of September 30, 2004 to 290 properties and $24,508,427. Accepted open offers as of September 30, 2004 are $ 247,000 (See detailed properties sales summary detailed in the sales section below). Cash and distributions. The trustee is currently holding approximately $ 2,309,925 of cash in escrow as of October 6, This is after the quarterly payments to the US Trustee totaling $ 12,500. The US Trustee s office has been contacted and has approved the reduction of the bonding limit from $ 7,500,000 to a lower amount and the trustee is pursuing a reduction in the bonding premium. Through October 6, 2004, $ 16,187,266 of net sale proceeds have been distributed. There remain currently pending distribution motions filed on 15 properties that will total $ 1,174,200 in distributions. All distributions are current. Eight of these 15 properties have outstanding objections and the remainders are waiting for the required objection period to elapse. The remaining distribution notices to be filed for properties that have closed are all in process, either with questions, are waiting on lienholders to submit qualification or with Ayres Carr and Sullivan to be noticed. The largest of which being the distribution for the bulk lot deal which will represent distributions of $ 668,

2 The schedule below outlines distributions made to lienholders through October 6, Additionally Monroe Bank is holding in escrow a net amount of $ 1,790, from the sale of the commercial properties. Lienholder Claim Amounts Distributions Chicago Title Insurance Company (164,026) Mechanics Liens All Seasons Insulation (5,644) Indiana Hardwood (56,109) Total Mechanics Liens (61,753) Mortgages Ameriana AB- $ 129,519 (129,042) AB-$ 135, (135,429) AB-$111,244 (88,054) AB-$118,757 (105,171) AB-$120,754 (109,583) AB-$124,963 (88,362) AB-$135,408 (105,906) AB-$137,511 (137,511) AB-$305,243 (227,730) AB-$34, (13,082) AB-$34,607 (26,085) AB-$35,640 (35,640) AB-$480,000-A Estates (73,199) Total Ameriana (1,274,795) Busey Bank (66,259) Citizens CB-$187,169 (185,620) CB-$233,962 (211,826) CB-$611, (298,145) CB-$94,044 (86,362) CB-Rent Refund (29,764) Total Citizens (811,718) First Indiana Bank FI-$655,962 (577,933) FI -$8,423,353 (1,663,718) 2

3 Lienholder Claim Amounts Distributions Total First Indiana Bank (2,241,652) First National FNB-$112,279 (77,302) FNB-$116,567 (56,648) FNB-$119,946 (60,302) FNB-$124,387 (65,813) FNB-$139,548 (102,224) FNB-$188,273 (135,413) FNB-$235,060 (140,081) FNB-$246,531 (229,553) FNB-$266,895 (255,232) FNB - $119,946 (56,298) FNB - $178,863 (132,524) First National - Other (15,970) Total First National (1,327,360) GMAC GM-$ 220,476 (159,509) GM-$ 89, (73,219) GM-$1,088,217-VILLAS (583,900) GM-$101, (93,430) GM-$107,007- # (104,439) GM-$108,444 (99,700) GM-$111,610 (97,064) GM-$113,351 (92,957) GM-$114,460 (70,339) GM-$117, (84,055) GM-$124,471 (65,633) GM-$135,880 (115,912) GM-$138,347 (100,323) GM-$151,812 (142,207) GM-$151,929 (130,691) GM-$154,818 (115,802) GM-$159,125 (134,353) GM-$159, (147,642) GM-$163,803 (155,828) 3

4 Lienholder Claim Amounts Distributions GM-$172,079 -# (152,229) GM-$188,006 (149,253) GM-$238,801 (229,852) GM-$79,416 (76,812) GM-$93, # (88,723) GM-$95,412 -# (90,135) GM-$98,024 (86,509) GM-$98,597 (69,931) GM - $ 91,428 (75,641) GM - $112,706 # (106,723) GM -$100,973 (77,798) Total GMAC (3,770,609) Harvest Properties - $141,719 (43,246) Irwin Union IU-$ 10,396 (10,396) IU-$123, (100,643) IU-$178,413 (167,278) IU-$615,866 - MUDCREEK (574,175) IU -$ 14,857 (14,759) Total Irwin Union (867,250) Landmark LS-$ 288,750 (199,719) LS-$333,102-Stafford (290,114) LS-$469,715 (26,165) LS-$665,447 (135,769) Total Landmark (651,767) Liberty Savings Bank Lib-$146,081 (146,081) Lib - $ 145,570 (140,667) LIB -$ 146, (116,208) Total Liberty Savings Bank (402,957) MacKenzie Corporation MK-$40,348 (22,613) MK - $229,606 (162,515) Total MacKenzie Corporation (185,127) 4

5 Lienholder Claim Amounts Distributions Monroe Bank MB-$448,668 (23,244) MB - Investors (942,530) Total Monroe Bank (965,774) Republic Bank RB-$6,411,102 (2,535,134) RB-$684,039 (25,525) RB-$862,971 (226,995) RB-$865,927 - VILLAS (504,601) Total Republic Bank (3,292,254) Swinney SW-$11,978 (11,978) SW-$12,420 (12,420) SW-$17,117 (5,593) SW-$34,306 (18,273) SW - $12,455 (12,456) Total Swinney (60,720) Total Mortgages (15,961,487) Total Distributions (16,187,266) 5

6 Administrative Fees In August there was $57, distributed for administrative fees, $ 40, for legal fees and $ 17, for trustee and other professional fees. Per the current order dated December 19,2003 all surcharges on monies distributed is being tracked by the lienholder ultimately paying the surcharge below is the detail of surcharges paid by lienholders to date ( Note this detail is only for properties where proceeds have been distributed) Surcharge Ameriana 54, Busey 1, Citizens 48, First Indiana 154, First National 79, GMAC 217, Harvest Properties 7, I Hardwood Irwin 41, Landmark 42, Liberty 16, Mackenzie 10, Monroe 119, Republic 201, Swinney 9, Whitten 8, Total Surcharge 1,013,

7 Financial Statements LS Associates has prepared monthly unaudited financial statements (on a cash basis) for the case to date. Since the inception with property closings and rental income the case has generated $20,867,593 in income prior to distributions. UNAUDITED Sep 04 Ordinary Income/Expense Income TOTAL Case to Date Misc Refunds - 1,290 Property Sales 1,207,100 24,508,428 Property Sales - Credits (5,568) (399,226) Rental Income 5, ,330 Total Income 1,207,482 24,493,822 Expense Bank Service Charges - 1,513 Closing Costs 21, ,242 Commissions - Property Sales 60,497 1,116,781 Insurance 2,954 63,181 Maintenance 12, ,330 Professional Fees 57,431 1,392,840 Supplies Taxes 51, ,231 US Trustee Quarterly Fees 12,500 65,250 Utilities 2,356 75,652 Total Expense 220,598 3,684,509 Net Ordinary Income 986,884 20,809,314 Other Income/Expense Interest Income 2,050 58,279 Net Income 988,934 20,867,593 It is important to note that the above are unaudited and on a cash basis. These financials include the $ 2,000,000 sale of the commercial property and in addition there has been $ 50,000 collected in second mortgage collections recorded on the balance sheet. 7

8 The $20,867,593 net income as of 09/30/04 can be accounted for as follows : $ 16,187,266 distributed 1,174,200 distribution notice filed, pending distribution 941,198 net sale proceeds received, distribution notice to be filed 774,784 distribution via debt assumption 1,790,145 commercial property net sale proceeds, held by Monroe in escrow $ 20,867,593 SALES and MARKETING Sales In September 2004, 49 properties closed with gross proceeds totaling $1,207,100. Below is a current summary of property sales : Royal Haven Builders/ Eric Tauer Property Sales - 09/30/04 TAUER/RHB OTHERS IN TITLE TOTAL # $ # $ # $ Properties Closed ,828, ,679, ,508,427. Accepted Offers Lots/Homes 1 45, , ,000 Raw Ground $ 19,873, $ 4,779, $24,653,427 Accepted Offers - Lot Takedowns 0-3 $ 102,000 3 $ 102, $ 19,873, $ 4,881, $24,755,427 Estimated Remaining Properties to Sell ( does not include questionable properties) Lots/Homes 25 1,608, ,804, ,412,550 Raw Ground 1 492, ,849, ,341, ,100, ,653, ,754,280 Remaining Questionable Properties 177 8

9 There are currently approximately 7 homes and 18 lots remaining to sell in title to Royal Haven or Eric Tauer. Below is a summary of the remaining properties: HOMES Eric Tauer and Royal Haven Builders Properties 09/30/04 IN TITLE TO OTHERS In Title to RHB KT/RHI STAFFORD OTHER Subtotal Total M&B AVON ESTATES BARRYKNOLL CC NAVES COLLETTE ACRES EAGLE VALLEY GREEN ACRES HERITAGE LAKE LIBERTY CREEK MEADOWOOD MUIRFIELD 1-1 STATION HILL TOTAL HOMES LOTS AVON ESTATES COLLETTE ACRES HARVEST RIDGE HERITAGE LAKE HOLLOWAY CORNER HOLLOW BROOK HOLLOW BROOK WEST KC WOODS ROYAL OAKS WHITE PINES TOTAL LOTS TOTAL PROPERTIES REMAINING

10 The details of the properties remaining can be found on the secured Royal Haven website at Additionally there are still 177 questionable properties that the trustee has identified that may have a Tauer or Royal Haven interest. These were identified from a variety of sources to include utility bills, debt statements and tax notices. LS Associates has been conducting brief chain of title investigations and other research on these properties during the past month to determine if they are in fact in title to either Royal Haven or Eric Tauer and market accordingly. The Master List will be adjusted to reflect the results. OTHER Beginning in May 2004, the trustee began to submission of motions for production of documents pursuant to procedure to 2004 to banks, individuals and companies time and expenses related to these motions are being accounted for separately. Much of this information has been received. Additionally there have been several meeting with many of the parties served with 2004 notices in order to clarify and review the information received as well as identify additional questions. Some potential sources of recovery have been identified and the trustee will continue to pursue. Other meetings are scheduled over the next few weeks to coordinate the accumulation of some of the additional data. Additional negotiations have been conducted with some parties regarding settlements. As outlined in the sales procedure order all billings by the trustee and counsel related to these investigations are being billed separately and no payments /nor fee applications have been filed for these billings to date. 10