FORM 8-K




Current Report Pursuant to Section 13 or 15(d) of 
The Securities Act of 1934



Date of Report: July 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 June and July, 1998, United Mortgage Trust ("the 
Company") acquired 31 first lien mortgage notes 
("residential mortgages") with a total unpaid principal 
balance on the date of purchase of $1,324,492, at a 
discount, for $1,246,978. Funds used to acquire the notes 
were gross offering proceeds from the closings on June 1, 
June 15, July 1, and July 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. 

Twenty-seven of the residential mortgages were acquired 
from South Central Mortgage, Inc., an affiliate of the 
Advisor, Mortgage Trust Advisors, Inc. The remaining four 
residential mortgages were acquired from private 
individuals: Elsie Good, Camille Matt, Bert Dantrow, and 
Alice LaFollette.

The residential mortgages acquired had a blended annual 
interest rate of 11.56%, a current annual yield of 
approximately 12.28%, and an investment-to-value ratio of 
81.39%, as of the purchase date of the notes. On average 
they had an unpaid principal balance of $42,725, a term 
remaining of 322 months and were acquired for approximately 
94.15% of the outstanding unpaid principal balance on the 
notes purchase date.

The Company paid acquisition fees in the amount of $39,734 
to the Advisor, Mortgage Trust Advisors, Inc., which 
represented 3% of the unpaid principal balance of the 
residential mortgages acquired.

As of July 31, 1998 the Company had investments in 69 
interim mortgages for an aggregate investment of 
$2,203,289. 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 13.65%. 

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

Sixty-three new shareholders were admitted to the Company 
during June and July, 1998 increasing the total number of 
shareholders to 341, and the total number of outstanding 
shares by 119,100 to 502,701. Gross offering proceeds from 
the sale of shares was $2,382,000 increasing the aggregate 
gross offering proceeds to $10,054,020. Proceeds from the 
June and July, 1998 closings were allocated as follows: 
$2,131,525 to the Company; $238,200 or 10% to the Selling 
Group Manager for selling commissions; $11,910 or 0.5% to 
the Selling Group Manager for due diligence fees; and $365 
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


July 31, 1998                    /S/Christine A. Griffin
                                   Christine A. Griffin
                                         President





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