SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 25, 1998
TRUST CREATED BY BLOCK MORTGAGE FINANCE, INC.
(under a Pooling and Servicing Agreement dated as of July 1, 1998,
which Trust is the Issuer of Block Mortgage Finance
Asset Backed Certificates, Series 1998-2)
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(Exact name of registrant as specified in its charter)
New York
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(State or other jurisdiction of incorporation)
333-14041 36-4238147
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(Commission File Number) (IRS Employer Identification No.)
One First National Plaza, Suite 0126
Chicago, Illinois
Attention: Corporate Trust Administration
Block Mortgage Finance
Asset Backed Certificates, Series 1998-2 60670-0126
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 312-407-0192
Not applicable
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
Attached hereto is a copy of the Statement to Certificateholders
with respect to the September, 1998, distribution to
Certificateholders, as provided to the Certificateholders by the
Trustee.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit 99.1 Statement to Certificateholders Relating to September, 1998,
Distributions to Holders of Block Mortgage Finance Asset Backed
Certificates, Series 1998-2.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Statement to Certificateholders
Relating to September, 1998, Distributions
to Holders of Block Mortgage
Finance Asset Backed Certificates,
Series 1998-2.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BLOCK MORTGAGE FINANCE, INC., as
Registrant
Date: October 5, 1998 By: /s/ Bret G. Wilson
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Bret G. Wilson, President
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BLOCK MORTGAGE FINANCE, INC., as
Registrant
Date: October 5, 1998 By:____________________________________
Bret G. Wilson, President
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Block Mortgage Finance
Asset Backed Certificates
Series 1998-2
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STATEMENT TO CERTIFICATE HOLDERS
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Distribution Date: 25-Sep-98
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Original Beginning Ending
Certificate Certificate Principal Interest Total Certificate
Class Face Value Balance Distribution Distribution Distribution Balance
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<S> <C> <C> <C> <C> <C> <C>
A-1 50,000,000.00 48,056,525.39 1,960,364.00 262,709.01 2,223,073.01 46,096,161.39
A-2 20,000,000.00 20,000,000.00 0.00 104,000.00 104,000.00 20,000,000.00
A-3 18,000,000.00 18,000,000.00 0.00 94,950.00 94,950.00 18,000,000.00
A-4 22,000,000.00 22,000,000.00 0.00 118,800.00 118,800.00 22,000,000.00
A-5 11,464,000.00 11,464,000.00 0.00 64,867.13 64,867.13 11,464,000.00
A-6 13,496,000.00 13,496,000.00 0.00 71,753.73 71,753.73 13,496,000.00
A-7 87,384,000.00 86,238,548.94 1,293,958.30 432,825.62 1,726,783.92 84,944,590.64
A-8 29,128,000.00 29,128,000.00 0.00 151,222.87 151,222.87 29,128,000.00
R 0.00 0.00 0.00 0.00 0.00 0.00
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Total 251,472,000.00 248,383,074.33 3,254,322.30 1,301,128.36 4,555,450.66 245,128,752.03
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AMOUNTS PER $1,000 UNIT RATES
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Ending
Principal Interest Total Certificate Current Pass
Class CUSIP Distribution Distribution Distribution Balance Through Rate
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<S> <C> <C> <C> <C> <C> <C>
A-1 09367MAS8 39.20728000 5.25418020 44.46146020 921.92322780 6.56000%
A-2 09367MAT6 0.00000000 5.20000000 5.20000000 1,000.00000000 6.24000%
A-3 09367MAU3 0.00000000 5.27500000 5.27500000 1,000.00000000 6.33000%
A-4 09367MAV1 0.00000000 5.40000000 5.40000000 1,000.00000000 6.48000%
A-5 09367MAW9 0.00000000 5.65833304 5.65833304 1,000.00000000 6.79000%
A-6 09367MAX7 0.00000000 5.31666642 5.31666642 1,000.00000000 6.38000%
A-7 09367MAY5 14.80772567 4.95314497 19.76087064 972.08402728 5.82844%
A-8 09367MAZ2 0.00000000 5.19166678 5.19166678 1,000.00000000 6.23000%
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Total 12.94109205 5.17404864 18.11514069 974.77552980
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Class A-7 Rate based on a LIBOR of: 5.64844%
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PLEASE DIRECT ANY QUESTIONS OR COMMENTS TO THE FOLLOWING ADMINISTRATOR:
Jeff Kinney
The First National Bank of Chicago
Mail Suite 0126
Chicago, IL 60670
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Distribution Date: 25-Aug-98
Group I Group II
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<S> <C> <C>
SEC. 7.09 (a)(i) Scheduled Principal 96,037.48 35,061.88
Principal Prepayments 1,395,918.62 909,209.06
Net Liquidation Proceeds 0.00 0.00
Paid Principal Carry Forward Amount 0.00 0.00
Remaining Unpaid Principal Carry Forward Amount 0.00 0.00
SEC. 7.09 (a) (ii) Compensating Interest 0.00 0.00
Paid Interest Carry Forward Amount 0.00 0.00
Remaining Unpaid Interest Carry Forward Amount 0.00 0.00
A-7 Basis Risk Carryover Amount Paid 0.00
A-7 Basis Risk Carryover Amount Remaining 0.00
Group I Group II Total
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<S> <C> <C> <C>
SEC. 7.09 (a)(iv), (xii) Aggregate Group Loan Balance: 131,996,810.45 115,906,930.59 247,903,741.04
SEC. 7.09 (a) (v) Servicing Fees 104,308.32
Insurance Premium Amount 0.00
Trustee Fee 2,920.63
SEC. 7.09 (a)(vii) Current Delinquency Advances 995,348.48
Current Servicing Advances 0.00
Total unreimbursed Delinquency Advances 0.00
Total unreimbursed Servicing Advances 0.00
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SEC. 7.09 (a) (viii) (A), (B) Not in Foreclosure In Foreclosure
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Delinquencies Period Number Prin. Balance Number Prin. Balance
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<S> <C> <C> <C> <C> <C>
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1-29 Days 895 47,070,146.35 8 488,363.78
30-59 Days 135 7,261,163.57 0 0.00
Fixed Group 60-89 Days 25 1,556,318.18 0 0.00
90+ Days 2 59,809.12 4 246,255.87
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1-29 Days 494 50,340,264.25 5 533,228.26
30-59 Days 63 5,968,154.14 0 0.00
Adj. Group 60-89 Days 15 1,005,472.63 2 117,000.00
90+ Days 7 548,950.26 1 41,968.26
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SEC. 7.09 (a)(ix), (x) Outstanding REO Properties Number Principal Balance
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* New REO Properties - See separate schedule, if applicable 0 0.00
<S> <C> <C>
SEC. 7.09 (a)(xi) Insured Payment 0.00
Class A-1 Allocation 0.00
Class A-2 Allocation 0.00
Class A-3 Allocation 0.00
Class A-4 Allocation 0.00
Class A-5 Allocation 0.00
Class A-6 Allocation 0.00
Class A-7 Allocation 0.00
Class A-8 Allocation 0.00
Group I Group II
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<S> <C> <C>
SEC. 7.09 (a)(xiii) Subordinated Amount 940,649.06 1,834,339.95
Subordination Deficit 0.00 0.00
Specified Subordinated Amount 8,097,636.08 8,238,297.46
SEC. 7.09 (a) (xiv) Substitution Adjustments 0.00 0.00
Loan Purchase Price amounts 0.00 0.00
SEC. 7.09 (a)(xv) Weighted Average Coupon 11.1746% 10.1042%
Weighted Average Remaining Term to Maturity 225 273
SEC. 7.09 (a)(xvi) Largest Loan Balance Outstanding 649,175.35 451,522.61
SEC. 7.09 (a)(xvi) Available Funds 2,210,593.34 1,529,682.69
Total Available Funds 2,679,001.24 1,879,370.05
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