[Letterhead of Elliott Davis, LLC]



                                      October 30, 2002



Securities and Exchange Commission
Washington, D.C.  20549

Dear Sir:

We have read  Item 4  included  in the Form  8-K/A  dated  October  30,  2002 of
HomeGold  Financial,  Inc. filed with the Securities and Exchange Commission and
are in agreement with the statements  contained therein,  except we are not in a
position to comment on the statement, "The registrant believes that it has taken
steps to  correct  the  weaknesses  specified  by  Elliott  Davis",  made by the
registrant.

                                      Very truly yours,


                                      /s/ Elliott Davis LLC

                                      Elliott Davis, LLC