FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: September 10, 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 August 1 and September 10, 1998, United Mortgage
Trust ("the Company") acquired 28 first lien mortgage notes
("residential mortgages") with a total unpaid principal
balance on the date of purchase of $1,130,458, at a
discount, for $1,096,969. Funds used to acquire the notes
were gross offering proceeds from the closings on Aug 3,
August 17, and September 1, 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-eight of the residential mortgages were acquired
from South Central Mortgage, Inc., an affiliate of the
Advisor, Mortgage Trust Advisors, Inc.
The residential mortgages acquired during the period had a
blended annual interest rate of 11.52%, a current annual
yield of approximately 11.87%, and an investment-to-value
ratio of 87.00%, as of the purchase date of the notes. On
average they had an unpaid principal balance of $40,372, a
term remaining of 345 months and were acquired for
approximately 97.04% of the outstanding unpaid principal
balance on the notes purchase date.
The Company paid acquisition fees in the amount of $33,913
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
residential mortgages acquired.
As of September 10, 1998 the Company had investments in 82
interim mortgages for an aggregate investment of
$2,862,213. 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 13.38%.
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
Thirty-two new shareholders were admitted to the Company
during the period August 1 to September 10, 1998 increasing
the total number of shareholders to 372, and the total
number of outstanding shares by 82,253 to 584,954. Gross
offering proceeds from the sale of shares was $1,645,060
increasing the aggregate gross offering proceeds to
$11,699,080. Proceeds from the periods' closings were
allocated as follows: $1,472,059 to the Company; $164,506
or 10% to the Selling Group Manager for selling
commissions; $8,225 or 0.5% to the Selling Group Manager
for due diligence fees; and $270 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
September 10, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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