FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: December 1, 1998
UNITED MORTGAGE TRUST
(a Maryland trust) Commission File Number 333-10109
IRS Employer Identification No. 75-6496585
1701 N. Greenville Avenue, Suite 403
Richardson TX 75081
(972) 705-9805
UNITED MORTGAGE TRUST
INDEX TO FORM 8-K
Page Number
Item 2. Acquisition or Disposition of Assets 3
Item 5. Other Information 4
Signatures 4
Item 2. Acquisition or Disposition of Assets
Between November 1 and November 30, 1998, United Mortgage
Trust ("the Company") acquired twenty first lien mortgage
notes ("residential mortgages") with a total unpaid
principal balance on the date of purchase of $954,826, at a
discount, for $912,881. Funds used to acquire the notes
were gross offering proceeds from the closings on November
2 and November 17, 1998. The residential mortgages were
chosen for purchase following the investment objectives and
policies as set forth in the Declaration of Trust, as
amended, dated August 15, 1996, and using the underwriting
criteria set forth therein.
All twenty of the residential mortgages were acquired from
South Central Mortgage, Inc., an affiliate of the Advisor,
Mortgage Trust Advisors, Inc. One mortgage was acquired
from a bank.
The residential mortgages acquired during the period had a
blended annual interest rate of 11.35%, a current annual
yield of approximately 11.87%, and an investment-to-value
ratio of 84.4%, as of the purchase date of the notes. On
average they had an unpaid principal balance of $47,741, a
term remaining of 337 months and were acquired for
approximately 95.61% of the outstanding unpaid principal
balance on the notes purchase date.
The Company paid acquisition fees in the amount of $41,944
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
residential mortgages acquired.
As of November 30, 1998 the Company had investments in 94
interim mortgages for an aggregate investment of
$3,443,883. The interim mortgages had terms of no greater
than 12 months and were made to borrowers for the purchase,
renovation and sale of single family homes. These loans,
which were first lien mortgage notes secured by properties
in Texas, had a blended interest rate of 13.11%.
Funds used in the acquisition of the assets were offering
proceeds from the sale of shares of the Company.
Item 5. Other Information
Status of Offering
Seventeen new shareholders were admitted to the Company
during the period November 1 to 30, 1998 increasing the
total number of shareholders to 427, and the total number
of outstanding shares to 717,163. Gross offering proceeds
received from the sale of shares during the period was
$866,600 increasing the aggregate gross offering proceeds
received to $14,343,260. Proceeds from the periods'
closings were allocated as follows: $775,532 to the
Company; $86,660 or 10% to the Selling Group Manager for
selling commissions; $4,333 or 0.5% to the Selling Group
Manager for due diligence fees; and $75 to the Escrow Agent
as compensation for distributing interest accrued to
subscribers.
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.
UNITED MORTGAGE TRUST
December 7, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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