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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