FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: April 30, 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 April, 1998, United Mortgage Trust ("the Company")
acquired fourteen first lien mortgage notes ("Residential
Mortgages") with a total unpaid principal balance on the
date of purchase of $539,230 at a discount for $506,204.
Funds used to acquire the notes were Gross Offering Proceeds
from the Closings on April 1, and April 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. Nine of
the Residential Mortgages were acquired from South Central
Mortgage, Inc., an affiliate of the Advisor, Mortgage Trust
Advisors, Inc. The ramining five Residential Mortgages were
acquired from private individuals: Audrey Oaks Family Trust,
Mr. & Mrs. Henry Smith, Phil Smith, Vivian Sanders and
Pamela Brown.
The Residential Mortgages acquired had a blended annual
interest rate of 11.39%, a current annual yield of
approximately 12.12%, and an investment-to-value ratio of
81.77%, as of the purchase date of the notes. On average
they had an unpaid principal balance of $38,516, a term
remaining of 156 months and were acquired for approximately
93.97% of the outstanding unpaid principal balance on the
notes purchase date.
The Company paid an Acquisition Fee in the amount of
$16,176.90 to the Advisor, Mortgage Trust Advisors, Inc.,
which represented 3% of the unpaid principal balance of the
Residential Mortgages acquired.
As of April 30, 1998 the Company had investments in 56
Interim Mortgages for an aggregate investment of $1,432,499.
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 14.34% and investment-to-values of
no greater than 50%.
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
Twenty-four new shareholders were admitted to the Trust
during April, 1998 increasing the total number of
shareholders from 231 to 255, and the total number of
outstanding shares from 327,694 to 355,140. Gross Offering
Proceeds from the sale of shares was $548,920, increasing
the aggregate Gross Offering Proceeds to $7,102,800.
Proceeds from the April, 1998 Closings were allocated as
follows: $491,238 to the Company; $54,892 or 10% to the
Selling Group Manager for Selling Commissions; $2,745 or
0.5% to the Selling Group Manager for Due Diligence Fees;
and, $45 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
April 30, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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