FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: November 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 September 11, 1998 and October 31, 1998, United
Mortgage Trust ("the Company") acquired forty-four first
lien mortgage notes ("residential mortgages") with a total
unpaid principal balance on the date of purchase of
$1,949,939, at a discount, for $1,938,871. Funds used to
acquire the notes were gross offering proceeds from the
closings on September 15, October 1, and October 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.
All forty-three 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 11.47%, a current annual
yield of approximately 11.81%, and an investment-to-value
ratio of 83.24%, as of the purchase date of the notes. On
average they had an unpaid principal balance of $42,784, a
term remaining of 334 months and were acquired for
approximately 97.09% of the outstanding unpaid principal
balance on the notes purchase date.
The Company paid acquisition fees in the amount of $58,166
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
residential mortgages acquired.
As of October 31, 1998 the Company had investments in 90
interim mortgages for an aggregate investment of
$3,037,776. 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 13.13%.
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-three new shareholders were admitted to the Company
during the period September 11 and October 31, 1998
increasing the total number of shareholders to 410, and the
total number of outstanding shares to 653,174. Gross
offering proceeds received from the sale of shares during
the period was $1,777,560 increasing the aggregate gross
offering proceeds received to $13,476,660. Proceeds from
the periods' closings were allocated as follows: $1,590,741
to the Company; $177,756 or 10% to the Selling Group
Manager for selling commissions; $8,888 or 0.5% to the
Selling Group Manager for due diligence fees; and $175 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
November 1, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
