UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    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): August 11, 2004

                        SUNSET FINANCIAL RESOURCES, INC.
             (Exact name of Registrant as specified in its Charter)

            Maryland                    001-32026              16-1685692
(State or other jurisdiction of        (Commission          (I.R.S. Employer
 incorporation or organization)        file number)       Identification Number)

           10245 Centurion Parkway North, Jacksonville, Florida 32256
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (904) 425-4099



Item 5. Other Events.

Attached as Exhibit 99.1 is a press release issued by the registrant on August
11, 2004.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c)   Exhibits

      99.1  Press Release issued August 11, 2004.


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                                    SIGNATURE

      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.

Date: August 16, 2004

                                                SUNSET FINANCIAL RESOURCES, INC.

                                                By: /s/ Thomas G. Manuel
                                                    ----------------------------
                                                    Secretary


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                                INDEX TO EXHIBITS

EXHIBIT
NUMBER      DESCRIPTION
- ------      -----------

99.1        Press Release issued August 11, 2004