UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K
                                 CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report: October 14, 2002

                            HOMEGOLD FINANCIAL, INC.
             (Exact name of registrant as specified in its charter)


SOUTH CAROLINA                     000-8909                57-0513287
(State or other juris-           (Commission             (IRS Employer
diction of incorporation)        File Number)        Identification Number)

           113 REED AVENUE, LEXINGTON, SOUTH CAROLINA     29072
            (Address of principal executive offices)    (Zip Code)

Registrant's telephone number, including area code:   (803) 358-1100

                   The Exhibit Index appears on page 4 hereof.





ITEM 4.      CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT

1.       Upon  recommendation  by the Audit Committee,  on October 11, 2002, the
         Board of Directors of HOMEGOLD FINANCIAL, INC. (the "Company") replaced
         Elliott  Davis,  LLC  ("Elliott  Davis") and engaged  Moore  Kirkland &
         Beauston  LLP to serve as the  Company's  auditors  for the year ending
         December 31, 2002.

2.       The report of Elliott  Davis for the years ended  December 31, 2001 and
         2000 did not  contain  an  adverse  opinion,  disclaimer  of opinion or
         qualification as to uncertainty,  audit scope or accounting principles.
         The  report of  Elliott  Davis for the year  ended  December  31,  2001
         contained  a  modification   concerning  substantial  doubt  about  the
         Company's ability to continue as a going concern.

3.       There were no disagreements  between  the  Company  and  Elliott  Davis
         during the interim periods subsequent to December 31, 2001.

         During the year ended  December 31, 2001,  the Company  disagreed  with
         Elliott  Davis  concerning  the  accounting  treatment  of a number  of
         financial issues:

         a.    recording an intangible  asset related to the costs of developing
               a customer leads database;

         b.    recording a valuation  reserve to reduce the estimated fair value
               of the retained interest in certain securitized loans;

         c.    recording  adequate  valuation  reserves related to the Company's
               deferred tax asset;

         d.    recording an impairment loss on certain long-lived assets; and

         e.    disclosing management's plans in regard to matters related to the
               Company's ability to continue as a going concern.

         Audit adjustments were recorded to expense items noted in a. through d.
         above.  The  Company  also  disclosed  its plans  related  to its going
         concern matters during 2001. All disagreements  were discussed with the
         Audit  Committee of the Board of Directors.  The Company has authorized
         Elliott Davis to respond fully to any inquiries by successor auditors.

         During the year ended  December 31, 2000,  the Company  disagreed  with
         Elliott Davis concerning the accounting treatment of certain loan fees.
         This  disagreement  was resolved by recording  an audit  adjustment  to
         defer  recognition of the loan fees.  This  disagreement  was discussed
         with the Audit Committee.

         Further, in connection with performing the audit of the Company for the
         year ended  December 31, 2001, the Company was advised by Elliott Davis
         that reportable conditions existed related to significant  deficiencies
         in the operation of internal  controls that could adversely  affect the
         Company's  ability to record,  process,  summarize and report financial
         data  consistent  with the  assertions  of  management in the financial
         statements.




         The Company  believes that it has taken steps to correct the weaknesses
         specified by Elliott Davis.

4.       As required by Item 304 of Regulation 8-K,  Elliott Davis has furnished
         to the  Company  a letter  addressed  to the  Securities  and  Exchange
         Commission  stating it agrees with the  statements  made by the Company
         herein.  A copy of such  letter is attached to this Form 8-K as Exhibit
         16.1.






ITEM 7.         FINANCIAL STATEMENTS AND EXHIBITS

         (a)    Financial Statements of the Business Acquired.  Not applicable.

         (b)    Pro Forma Financial Information.  Not applicable.

         (c)    Exhibits.

                16.1       Letter of Elliott Davis, LLC


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                      HOMEGOLD FINANCIAL, INC.

October 14, 2002                      By:  /s/ Karen A. Miller
                                          ----------------------------------
                                      Karen A. Miller
                                      Executive Vice President
                                      Chief Financial Officer
                                      Treasurer








                                  EXHIBIT INDEX


       16.1       Letter of Elliott Davis, LLC