FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: July 31, 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
During June and July, 1998, United Mortgage Trust ("the
Company") acquired 31 first lien mortgage notes
("residential mortgages") with a total unpaid principal
balance on the date of purchase of $1,324,492, at a
discount, for $1,246,978. Funds used to acquire the notes
were gross offering proceeds from the closings on June 1,
June 15, July 1, and July 15, 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.
Twenty-seven of the residential mortgages were acquired
from South Central Mortgage, Inc., an affiliate of the
Advisor, Mortgage Trust Advisors, Inc. The remaining four
residential mortgages were acquired from private
individuals: Elsie Good, Camille Matt, Bert Dantrow, and
Alice LaFollette.
The residential mortgages acquired had a blended annual
interest rate of 11.56%, a current annual yield of
approximately 12.28%, and an investment-to-value ratio of
81.39%, as of the purchase date of the notes. On average
they had an unpaid principal balance of $42,725, a term
remaining of 322 months and were acquired for approximately
94.15% of the outstanding unpaid principal balance on the
notes purchase date.
The Company paid acquisition fees in the amount of $39,734
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
residential mortgages acquired.
As of July 31, 1998 the Company had investments in 69
interim mortgages for an aggregate investment of
$2,203,289. 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 13.65%.
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
Sixty-three new shareholders were admitted to the Company
during June and July, 1998 increasing the total number of
shareholders to 341, and the total number of outstanding
shares by 119,100 to 502,701. Gross offering proceeds from
the sale of shares was $2,382,000 increasing the aggregate
gross offering proceeds to $10,054,020. Proceeds from the
June and July, 1998 closings were allocated as follows:
$2,131,525 to the Company; $238,200 or 10% to the Selling
Group Manager for selling commissions; $11,910 or 0.5% to
the Selling Group Manager for due diligence fees; and $365
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
July 31, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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