FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: May 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 May, 1998, United Mortgage Trust ("the Company")
acquired twelve first lien mortgage notes ("Residential
Mortgages") with a total unpaid principal balance on the
date of purchase of $500,464, at a discount, for $467,609.
Funds used to acquire the notes were Gross Offering Proceeds
from the Closings on May 1, and May 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. Ten of
the Residential Mortgages were acquired from South Central
Mortgage, Inc., an affiliate of the Advisor, Mortgage Trust
Advisors, Inc. The ramining two Residential Mortgages were
acquired from private individuals: Audrey J. Owens and Jack
A. Brown.
The Residential Mortgages acquired had a blended annual
interest rate of 11.64%, a current annual yield of
approximately 12.46%, and an investment-to-value ratio of
81.1%, as of the purchase date of the notes. On average they
had an unpaid principal balance of $41,705, a term remaining
of 351 months and were acquired for approximately 93.44% of
the outstanding unpaid principal balance on the notes
purchase date.
The Company paid an Acquisition Fee in the amount of $15,014
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
Residential Mortgages acquired.
As of May 31, 1998 the Company had investments in 57 Interim
Mortgages for an aggregate investment of $1,585,586. 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 13.64% 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-three new shareholders were admitted to the Trust
during May, 1998 increasing the total number of shareholders
from 255 to 278, and the total number of outstanding shares
from 355,140 to 383,601. Gross Offering Proceeds from the
sale of shares was $569,220 increasing the aggregate Gross
Offering Proceeds to $7,672,020. Proceeds from the May, 1998
Closings were allocated as follows: $509,312 to the Company;
$56,922 or 10% to the Selling Group Manager for Selling
Commissions; $2,846 or 0.5% to the Selling Group Manager for
Due Diligence Fees; and, $140 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
June 3, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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