NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW

On July 26, 2011, in response to comments received from the Staff of the Securities and Exchange Commission ("SEC"), the Board of Directors of Consolidation Services, Inc. (the "Registrant") made a determination that the consolidated financial statements of the Company as of December 31, 2010 and for the year then ended as contained in its Form 10-K, as well as the consolidated financial statements filed in Forms 10-Q for the periods ending June 30, 2010 and September 30, 2010, should no longer be relied upon as goodwill should not have been recorded or impaired under the new and final valuation of $4.3 million. The Company will amend the Form 10-K, as well as its Forms 10-Q for June 30, 2010 and September 30, 2010 to remove the impairment of goodwill as a result of a change in the Registrant's valuation of its Reserve Report.

On January 25, 2012, the Registrant was advised by GBH CPAs, PC, its independent registered public accounting firm, that its audit report dated April 14, 2011 was being withdrawn due to the failure of the Registrant to timely make such amendments to its consolidated financial statements; file a timely Form 8K regarding non-reliance on previously issued financial statements and timely respond to the SEC Staff's comments.

Copy of the independent accountants' letters: (A) addressed to the Registrant stating that its audit report was being withdrawn, and (B) addressed to the SEC stating they agree with the statements made by the Registrant in this Form 8-K, have been filed as Exhibit 7.1 to this Form 8-K.

Authorized officers of the Company have discussed with the independent accountants the matters disclosed in the filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

Exhibits Description 7.1(a)(b) Correspondence from an Independent Accountant Regarding Non-Reliance on a Previously Issued Audit Report or Completed Interim Review.

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