EXHIBIT 99.2





                             ADVANCED FINANCIAL INC.


Contact:   Brad Morris                              News Release
           (913) 441-2466                           BB:  AVFI

FOR IMMEDIATE RELEASE



                     ADVANCED FINANCIAL, INC. AND SUBSIDIARY
                              RECEIVE CONFIRMATION
                         OF JOINT PLAN OF REORGANIZATION


     SHAWNEE,  KANSAS, October 5, 1998 --- Advanced Financial,  Inc. ("Advanced"
or the "Company") and its wholly owned subsidiary,  AFI Mortgage, Corp. ("AFIM")
announced  today  that the U.S.  Bankruptcy  Court  for the  District  of Kansas
confirmed their joint plan of reorganization on September 30, 1998.

Pursuant to the confirmed joint plan of reorganization, among other things:

      (a) First Mortgage Investment, Co. (FMIC), a creditor of the Company, will
      release  its  secured  claims  against,  and  acquire  certain  assets of,
      Advanced and AFIM in exchange for 1,800,000  shares of common stock of the
      Company,  initially  constituting  60% of the  3,000,000  new shares to be
      issued as part of the Company's  recapitalization  and reorganization.  In
      addition FMIC has an option to acquire an additional  3,000,000  shares at
      $.50 per share or $1.5  million  increasing  its  ownership  to 80% of the
      outstanding shares of the Company.

      (b) The  Company  will issue  shares of common  stock,  warrants  and make
      partial  payments,  to certain  other  creditors  of Advanced  and AFIM in
      exchange for a release of their claims. The creditors will receive 900,000
      shares of common stock of the Company,  constituting  30% of the 3,000,000
      new shares to be issued as a part of the  Company's  recapitalization  and
      reorganization.  The 

                                 P.O. Box 3217
                             Shawnee, Kansas 66203


      creditors  will also  receive  900,000  warrants  allowing  the  holder to
      purchase  one share of common  stock per warrant at a price of $1.25.  The
      warrants  are callable by the Company at 130% of the strike price paid and
      expire on March 31, 2002.

      (c) Shares currently held by preferred and common shareholders of Advanced
      will be canceled and they shall receive 300,000 shares of new common stock
      of the Company,  constituting 10% of the 3,000,000 new shares to be issued
      as  part  of  the  Company's  recapitalization  and  reorganization.  Each
      preferred and common  shareholder shall receive  approximately  .05269 new
      shares for each old share.

The completion of these  transactions is subject to a number of conditions.  The
Company  currently  anticipates  that  the  transactions  will  be  effected  in
approximately 90 days, subject to satisfaction of all conditions precedent.

Upon  implementation  of the plan of  reorganization,  the  Company  intends  to
acquire an ongoing business and/or build its business operations internally. The
Company believes that the  reorganization  and  recapitalization  will allow its
creditors  and  shareholders  to  potentially  receive  more value  through  the
appreciation of its shares than would have otherwise been realized had a plan of
reorganization not been pursued.

Some of the matters discussed in this press release  constitute  forward-looking
statements  within the meaning of the securities laws. Actual results may differ
materially from those projected in such  forward-looking  statements as a result
of a variety  of risks  and  uncertainties.  Investors  are  cautioned  that all
forward-looking statements involve risk and uncertainty.






                                       2