FORM 8-K




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



Date of Report: September 10, 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 August 1 and September 10, 1998, United Mortgage 
Trust ("the Company") acquired 28 first lien mortgage notes 
("residential mortgages") with a total unpaid principal 
balance on the date of purchase of $1,130,458, at a 
discount, for $1,096,969. Funds used to acquire the notes 
were gross offering proceeds from the closings on Aug 3, 
August 17, and September 1, 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 twenty-eight of the residential mortgages were acquired 
from South Central Mortgage, Inc., an affiliate of the 
Advisor, Mortgage Trust Advisors, Inc. 

The residential mortgages acquired during the period had a 
blended annual interest rate of 11.52%, a current annual 
yield of approximately 11.87%, and an investment-to-value 
ratio of 87.00%, as of the purchase date of the notes. On 
average they had an unpaid principal balance of $40,372, a 
term remaining of 345 months and were acquired for 
approximately 97.04% of the outstanding unpaid principal 
balance on the notes purchase date.

The Company paid acquisition fees in the amount of $33,913 
to the Advisor, Mortgage Trust Advisors, Inc., which 
represented 3% of the unpaid principal balance of the 
residential mortgages acquired.

As of September 10, 1998 the Company had investments in 82 
interim mortgages for an aggregate investment of 
$2,862,213. 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 13.38%. 

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-two new shareholders were admitted to the Company 
during the period August 1 to September 10, 1998 increasing 
the total number of shareholders to 372, and the total 
number of outstanding shares by 82,253 to 584,954. Gross 
offering proceeds from the sale of shares was $1,645,060 
increasing the aggregate gross offering proceeds to 
$11,699,080. Proceeds from the periods' closings were 
allocated as follows: $1,472,059 to the Company; $164,506 
or 10% to the Selling Group Manager for selling 
commissions; $8,225 or 0.5% to the Selling Group Manager 
for due diligence fees; and $270 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


September 10, 1998              /S/Christine A. Griffin
                                   Christine A. Griffin
                                         President






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