SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
 (Mark One)

    X           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934.

               For the quarterly period ending September 30, 2001
                                               ------------------

                                       OR

   ___         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934.

               For the transition period from _______ to _______

                          Commission file number 1-4719
                                                  ------

                             THE DELTONA CORPORATION
             -------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            DELAWARE                                            59-0997584
--------------------------------------------------------------------------------
(State of other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                           Identification Number)

 8014 SW 135 STREET ROAD, OCALA, FLORIDA                           34473
--------------------------------------------------------------------------------
(Address of principal executive office)                          (Zip Code)

Registrant's telephone number, including area code          (352)307-8100
                                                   -----------------------------

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of  Securities  Exchange Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X No__

     Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date:  13,544,277 shares of common stock, $1
par value, excluding treasury stock, as of September 30, 2001.



<PAGE>
                         PART I - FINANCIAL INFORMATION
                         ------------------------------

ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                 -----------------------------------------------
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                    ----------------------------------------
                                 ($000 Omitted)

                                                    September 30,   December 31,
                                                       2001             2000
                                                    -------------   ------------
<S>                                                 <C>             <C>
                                     ASSETS
                                     ------

Cash and cash equivalents, including escrow
  deposits and restricted cash of $513 in 2001
  and $587 in 2000 ..............................   $    994        $    680
                                                    --------        --------
Contracts receivable for land sales - net .......      1,183           1,554
                                                    --------        --------
Mortgages and other receivables - net ...........        146             140
                                                    --------        --------

Inventories (b):
 Land and land improvements .....................      8,135           8,375
 Homes under construction .......................      1,068           1,361
                                                    --------        --------
               Total inventories ................      9,203           9,736
                                                    --------        --------

Property, plant, and equipment at cost - net ....        622             455
Prepaid expenses and other ......................      1,354           1,403
                                                    --------        --------
               Total ............................   $ 13,502        $ 13,968
                                                    ========        ========

                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

Mortgages and similar debt(c):
 Mortgage notes payable .........................   $  4,500        $  5,400
 Other loans ....................................      5,710           5,572
                                                    --------        --------
   Total mortgages and similar debt .............     10,210          10,972

Accounts payable, accrued expenses,
 customers' deposits ............................      6,856           6,490
Deferred revenue ................................      5,101           5,345
                                                    --------        --------
               Total liabilities ................     22,167          22,807
                                                    --------        --------
Commitments and contingencies (d):

Stockholders' equity (deficiency):
  Common stock, $1 par value - authorized
  15,000,000 shares; outstanding: 13,544,277
  shares (excluding 12,228 shares held in
  treasury ......................................     13,544          13,544
 Capital surplus ................................     52,295          52,270
 Accumulated deficit ............................    (74,504)        (74,653)
                                                    --------        --------
   Total stockholders'(deficiency) ..............     (8,665)         (8,839)
                                                    --------        --------
               Total ............................   $ 13,502        $ 13,968
                                                    ========        ========
See accompanying notes.
</TABLE>
                                        2

<PAGE>


<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
            ---------------------------------------------------------
                            FOR THE PERIODS INDICATED
                            -------------------------
                     ($000 Omitted Except Per Share Amounts)

                                          Nine Months Ended             Three Months Ended
                                     ----------------------------    ---------------------------
                                     September 30,  September 30,    September 30, September 30,
                                         2001           2000            2001           2000
                                     ------------   ------------    ------------   ------------
<S>                                  <C>            <C>             <C>            <C>
Revenues (a):
 Net land sales...................   $      5,909   $      4,345    $      1,816   $      1,483
 House and apartment sales .......          2,821          2,074             881            944
 Recognized improvement revenue /
  prior period sales .............             91            207              50             68
 Gain on recovery of bad debt ....            178              0               0              0
 Interest income .................            300            370              70            201
 Other revenues ..................            632            388             212             98
                                     ------------   ------------    ------------   ------------
     Total .......................          9,931          7,384           3,029          2,794
                                     ------------   ------------    ------------   ------------

Costs and expenses (a):
 Cost of sales and improvements ..          3,975          2,964           1,231          1,185
 Selling, general, administrative
  and other expenses .............          5,129          4,127           1,617          1,304
 Interest expense (c)(e) .........            707            695             166            236
                                     ------------   ------------    ------------   ------------
     Total .......................          9,811          7,786           3,014          2,725
                                     ------------   ------------    ------------   ------------

Net Income (Loss) ................   $        120   $       (402)   $         15   $         69
                                     ============   ============    ============   ============

Net Income (Loss) per common share   $        .01   $       (.03)   $        .01   $        .01
                                     ============   ============    ============   ============

Number of common and common
 equivalent shares ...............     13,544,277     13,544,277      13,544,277     13,544,277
                                     ============   ============    ============   ============



See accompanying notes
</TABLE>



                                        3
<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE NINE MONTHS ENDED
                            -------------------------
                    SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000
                    -----------------------------------------
                                 ($000 Omitted)


                                                         Nine  Months Ended
                                                   September 30,   September 30,
                                                       2001            2000
                                                   -------------   -------------
<S>                                                <C>             <C>

Cash flows from operating activities .........     $     (3,224)   $     (3,627)
                                                   ------------    ------------

Cash flows from investing activities:
 Payment for acquisition and construction
  of property, plant and equipment ...........              (62)            (17)
                                                   ------------    ------------
Net cash provided by (used in) investing
  activities .................................              (62)            (17)
                                                   ------------    ------------

Cash flows from financing activities:
  New borrowings .............................            3,600           4,008
                                                   ------------    ------------
Net cash provided by (used in) financing
  activities .................................            3,600           4,008
                                                  -------------    ------------
Net increase (decrease) in cash and cash
 equivalents (including escrow deposits and
 restricted cash) ............................              314             364
Cash and cash equivalents beginning
 of period ...................................              680             548
                                                  -------------   -------------
Cash and cash equivalents end of period ......    $         994   $         912
                                                  =============   =============


See accompanying notes.
</TABLE>


                                        4

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE NINE MONTHS ENDED
                            -------------------------
                    SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000
                    -----------------------------------------
                                 ($000 Omitted)


                                                         Nine  Months Ended
                                                   September 30,   September 30,
                                                       2001            2000
                                                   -------------   -------------
<S>                                                <C>             <C>


Reconciliation of net income (loss) to net cash provided by (used in) operating
 activities:

  Net income (loss)...........................     $        120    $       (402)
                                                   ------------    ------------
Adjustments to reconcile net loss to net cash provided by (used in) operating
 activities:

  Depreciation and amortization...............               45              37
  Provision for estimated uncollectible
   sales-net..................................            1,751             618
  Contract valuation discount, net of
   amortization...............................              (82)             34
  Imputed Interest on debt with related party.               24             313
  Net change in assets and liabilities........           (5,082)         (4,227)
                                                   ------------    ------------
               Total adjustments..............     $     (3,344)   $     (3,225)
                                                   ------------    ------------

  Net cash provided by (used in) operating
   activities.................................     $     (3,224)   $     (3,627)
                                                   ============    ============

  Supplemental disclosure of non cash investing and financing activities:
    Purchase of equipment with note payable...              127               0
  Reduction of debt as a result of the
    conveyance of contracts receivable........     $      4,486   $       4,084
                                                   ============   =============


See accompanying notes.

</TABLE>

                                        5

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------

THE INFORMATION  PRESENTED HEREIN AS OF SEPTEMBER 30,2001 FOR THE THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 IS UNAUDITED.

(a)  BASIS OF PRESENTATION

     The  condensed  unaudited  financial  statements  of the Company  have been
     prepared  pursuant  to the  rules and  regulations  of the  Securities  and
     Exchange  Commission (the  "Commission").  Certain information and footnote
     disclosures   normally  included  in  financial   statements   prepared  in
     accordance  with  generally  accepted   accounting   principles  have  been
     condensed or omitted  pursuant to  Commission  rules and  regulations.  The
     information  furnished  reflects,   in  the  opinion  of  management,   all
     adjustments (consisting only of normal recurring adjustments) necessary for
     a  fair  statement  of the  results  for  the  interim  periods  presented.
     Operating  results for the three and nine months ended  September  30, 2001
     are not necessarily  indicative of the results that may be expected for the
     year ending  December  31, 2001.  These  condensed  consolidated  financial
     statements should be read in conjunction with the financial  statements and
     the notes thereto  included in the  Company's  latest Annual Report on Form
     10-K.

     Certain amounts have been reclassified for comparative purposes.

     The  accompanying  financial  statements  of The  Deltona  Corporation  and
     subsidiaries  ("The  Company") have been prepared on a going concern basis,
     which   contemplates   the  realization  of  assets  and   satisfaction  of
     liabilities  in the normal  course of  business.  The Company has  incurred
     losses  from  operations  resulting  in a  stockholders'  deficiency  as of
     September 30, 2001. The Company has been dependant on its ability to obtain
     financing from related companies to meet its cash  requirements.  There can
     be no  guarantee  that  the  Company  will  be able  to  obtain  sufficient
     financing in the future or that related parties will continue to make loans
     to the Company.  The consolidated  financial  statements do not include any
     adjustments  relating to the  recoverability of asset amounts or the amount
     of liabilities should the Company be unable to continue as a going concern.

(b)  INVENTORIES

     Information  with  respect to the  classification  of inventory of land and
     improvements  including  land held for sale or  transfer  is as follows (in
     thousands):

                              Land and Improvements
                              ---------------------
                                                      September 30, December 31,
                                                          2001          2000
                                                      ------------- ------------
       Unimproved land.............................   $    420      $    420
       Land in various stages of development.......      1,143         2,316
       Fully improved land.........................      6,572         5,639
                                                      --------      --------
              Total................................   $  8,135      $  8,375
                                                      ========      ========


(c)  MORTGAGES AND SIMILAR DEBT

     The  following  table  presents  information  with respect to mortgages and
     similar debt (in thousands):

                                                      September 30, December 31,
                                                          2001          2000
                                                      ------------- ------------

       Mortgage Notes Payable ......................  $   4,500     $   5,400
       Other Loans..................................      5,710         5,572
                                                      ---------     ---------
              Total mortgages and similar debt......  $  10,210     $  10,972
                                                      =========     =========


                                        6

<PAGE>



     From June 19, 1992  through  March 1999,  the Company had entered into loan
     agreements  with  Selex  International  B.V.,  a  Netherlands   corporation
     ("Selex"),  Yasawa  Holdings,  N.V.,  a  Netherlands  Antilles  corporation
     ("Yasawa"),  Swan  Development  Corporation  ("Swan") and related  parties,
     including  Scafholding  B.V.  ("Scafholding").  Since  December  1992,  the
     Company has been dependent on loans and advances from Selex,  Yasawa,  Swan
     and their affiliates in order to meet its working capital requirements.

     Included  in  Mortgage  Notes  Payable is the Yasawa  loan  ($4,500,000  at
     September 30, 2001);  included in Other Loans is the Swan loan  ($5,586,000
     as of September 30, 2001).

     Indebtedness  under various purchase money mortgages and loan agreements is
     collateralized  by  substantially  all of the Company's  assets,  including
     stock of certain wholly-owned subsidiaries.  The Company's outstanding debt
     to Yasawa is  secured by a first lien on the  Company's  receivables  and a
     mortgage on all of the Company's  property;  and the Company's  outstanding
     debt to Swan is secured by a second lien on the Company's receivables.

     As of December 31,  1999,  the Company had  satisfied  its  principal  debt
     obligation to Scafholding.  The Company's  outstanding debt to Yasawa as of
     September  30,  2001  was  $4,500,000.   The  terms  of  repayment  of  the
     restructured  Yasawa loan provide for monthly  payments of principal in the
     amount of $100,000 payable monthly in cash or with contracts  receivable at
     100% of face value,  plus interest payable monthly on the declining balance
     at the rate,  effective  January 1,  1999,  of 6% per annum in cash or with
     contracts  receivable  at 65% of face value.  The  interest  rate was again
     changed  effective  January  1,  2001 to the  prime  rate,  to be  adjusted
     semi-annually  thereafter,  to equal the prime  rate then in  effect.  From
     January 2001 to June 2001,  the interest rate on the  outstanding  debt was
     9.5%,  which  was  prime.  As of  July  2001,  the  interest  rate  on  the
     outstanding  debt has been adjusted to 6.5%, which equals the prime rate as
     of July 1, 2001. Yasawa and Scafholding did not require the Company to make
     interest  payments for the period  September 1, 1998 to September 30, 2001.
     As of  September  30,  2001,  the  total  amount  of  interest  accrued  is
     approximately $1,384,000, which is included in accrued expenses.

     From  October 9, 1998  through  the  present,  Swan  continued  to loan the
     Company  funds to meet its  working  capital  requirements.  The  Company's
     outstanding  debt  to  Swan,  which  is  secured  by a  second  lien on the
     Company's receivables, was $5,586,000 as of September 30, 2001. The Company
     signed a promissory  note to Swan in March 1999 which  provides  that funds
     advanced  by Swan will be paid back by the  Company  monthly  in  contracts
     receivables at 90% of face value,  with recourse.  There is no interest for
     the first nine months  after an advance of money is  received  from Swan by
     the Company;  thereafter  the interest was 6% per annum on the  outstanding
     balance of the advance.  The interest rate was changed effective January 1,
     2001 to the prime rate, to be adjusted semi-annually  thereafter,  to equal
     the prime rate then in effect. Each time an advance is made, a supplemental
     note is signed.  The amount of each  monthly  payment will vary and will be
     dependent  upon  the  amount  of  contracts  receivable  in  the  Company's
     portfolio,  excluding  contracts  receivable  held as collateral  for prior
     receivable sales. Pursuant to the terms of the promissory note, the Company
     is  required  to transfer  to Swan  monthly as debt  repayment  all current
     contracts  receivable in the Company's portfolio in excess of the aggregate
     sum of  $500,000.  Funds  advanced by Swan were used by the Company to meet
     the Company's working capital requirements. From January 2001 to June 2001,
     the interest rate on the outstanding  debt was 9.5%, which was prime. As of
     July 2001, the interest rate on the  outstanding  debt has been adjusted to
     6.5%,  which equals the prime rate as of July 1, 2001.  As of September 30,
     2001, the total amount of interest accrued is approximately $522,000, which
     is included in accrued expenses.

     The Company  recorded  interest expense on all outstanding debt balances to
     Yasawa and Swan at the Company's incremental borrowing rate. The difference
     between interest calculated at the Company's incremental borrowing rate and
     the amount accrued under the terms of the respective  notes was recorded as
     capital  contribution  increase to capital  surplus.  Effective  January 1,
     2001, the Company's incremental borrowing rate is adjusted semi-annually to
     equal the prime rate.

                                        7
<PAGE>

(d)  COMMITMENTS AND CONTINGENCIES

     Homesite  sales  contracts  provide  for the return of all  monies  paid in
     (including  paid-in  interest)  should  the  Company  be unable to meet its
     contractual  obligations after the use of reasonable diligence. If a refund
     is made, the Company will recover the related  homesite and any improvement
     thereto.

(e)  CAPITALIZED INTEREST

     The  Company   capitalizes   interest  cost  incurred  during  a  project's
     construction  period.  Of the total  interest cost incurred of $744,000 and
     $756,000 for the nine months ended  September  30, 2001 and  September  30,
     2000,  respectively,  interest  in the amount of $37,000  and  $61,000  was
     capitalized  for the  nine  months  ended  September  30,  2001  and  2000,
     respectively.

(f)  EARNINGS OR LOSS PER SHARE

     Basic earnings (loss) per common and common  equivalent share were computed
     by dividing net income (loss) by the weighted  average  number of shares of
     Common Stock and common stock equivalents outstanding during each period.

(g)  RELATED PARTY TRANSACTION

     In January 2000, the Company purchased 16 lots and homes under construction
     from  Scafholding  for  approximately   $862,000.  This  amount  represents
     Scafholding's  lot cost and  payments  to date to the  home  builder.  This
     transaction  was 100%  financed  by Swan under its  existing  note  payable
     arrangement.

     In  September   2001,  the  Company  entered  into  a  joint  venture  with
     Scafholding  with each entity  owning 50%.  The venture is for the purchase
     and sale of  property  for  profit.  The  venture  agreement  provides  for
     financing  to be  provided by  Scafholding  and  venture  management  to be
     provided  by the  Company.  The  Company is  providing  administrative  and
     managerial  services  to the  venture,  as  well  as  providing  sales  and
     marketing  access.  The Company will be reimbursed for all  commissions and
     marketing costs plus an administrative fee of 10% of all sales consummated.
     Interest on outstanding debt from Scafholding  financing will accrue at the
     prime rate plus one percent (1%). Any  distribution of net  proceeds/profit
     is based upon ownership interest.  The equity method is used for accounting
     and reporting purposes,  as Scafholding has contractual  authority over the
     operations of the venture.  Investment in the venture at September 30, 2001
     is $24,000 and is included in prepaid expenses and other.


                                        8

<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

RESULTS OF OPERATIONS
---------------------

For the nine months ended September 30, 2001 and September 30, 2000.

Revenues
--------

Total revenues were $9,931,000 for the first nine months of 2001 ($3,029,000 for
the quarter ending September 30, 2001) compared to $7,384,000 for the comparable
2000 period ($2,794,000 for the quarter ending September 30,2000).

Gross land sales were  $7,758,000  for the first nine months of  2001($2,305,000
for the quarter ending  September 30, 2001) compared to $5,184,000 for the first
nine months of 2000  ($1,687,000 for the quarter ending September 30, 2000). Net
land sales (gross land sales less estimated uncollectible  installment sales and
contract valuation  discount)  increased to $5,909,000 for the first nine months
of  2001($1,816,000  for the quarter  ending  September  30,  2001)  compared to
$4,345,000 for the first nine months of 2000  ($1,483,000 for the quarter ending
September  30,  2000).  The  increase  in  sales  reflects  higher  sales by the
Company's independent dealers.

Housing  revenues  were  $2,821,000  for the first  nine  months of 2001  versus
$2,074,000 for the  comparable  2000 period.  Revenues are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues  increased  as of result of higher sales by the  Company's  independent
dealer  network.  The  backlog  of houses  under  contract  was  $3,019,000  and
$6,736,000 as of September 30, 2001 and September 30, 2000, respectively.

The  following  table  reflects the  Company's  real estate  product mix for the
periods indicated (in thousands):

                              Nine Months Ended           Three Months Ended
                        ---------------------------- ---------------------------
                        September 30, September 30,  September 30, September 30,
                           2001           2000          2001          2000
                        ------------- -------------  ------------- -------------
Gross Land Sales:
Retail Sales*           $ 7,758       $   5,184      $ 2,305       $ 1,687
                        -------       ---------      -------       -------
Housing Sales:            2,821           2,074          881           944
                        -------       ---------      -------       -------

  Total Real Estate     $10,579       $   7,258      $ 3,186       $ 2,631
                        =======       =========      =======       =======
---------------------

*    New retail land sales contracts  entered into,  including  deposit sales on
     which the Company has  received  less than 20% of the sales  price,  net of
     cancellations,  for the nine months ended  September 30, 2001 and September
     30, 2000 were  $8,602,000 and $6,715,000,  respectively  and $2,887,000 and
     $2,775,000  for the  three  months  ended  September  30,  2001  and  2000,
     respectively.  The Company  had a backlog of  approximately  $4,396,000  in
     urecognized sales as of September 30, 2001. Such contracts are not included
     in retail land sales until the applicable rescission period has expired and
     the Company has received payments totaling 20% of the contract sales price.

Improvement  revenues  result from  recognition of revenues  deferred from prior
period sales.  Recognition occurs as development work proceeds on the previously
sold  property  or  customers  are  exchanged  to a developed  lot.  Improvement
revenues  totaled  $91,000  for the first nine months of 2001  ($50,000  for the
third quarter of 2001) versus  $207,000 for the comparable  2000 period ($68,000
for the third quarter of 2000).

Interest  income was $300,000 for the first nine months of 2001 ($70,000 for the
third quarter of 2001) versus $370,000 for the comparable 2000 period  ($201,000
for the third quarter of 2000).

Other revenues were $632,000 for the first nine months of 2001 ($212,000 for the
third quarter of 2001) versus  $388,000 for the comparable  2000 period ($98,000
for the third quarter of 2000). Other revenues are principally  generated by the
Company's title insurance and real estate brokerage subsidiaries.


                                        9

<PAGE>



Costs and Expenses
------------------

Costs and expenses were $9,811,000 for the first nine months of 2001 ($3,014,000
for the third quarter of 2001) versus  $7,786,000 for the comparable 2000 period
($2,725,000  for the third quarter of 2000).  Cost of sales were  $3,975,000 for
the first nine months of 2001  ($1,231,000 for the third quarter of 2001) versus
$2,964,000 for the comparable  2000 period  ($1,186,000 for the third quarter of
2000).

Commissions,  advertising and other selling expenses totaled  $3,637,000 for the
first nine  months of 2001  ($1,231,000  for the third  quarter of 2001)  versus
$2,709,000  for the  comparable  2000 period  ($857,000 for the third quarter of
2000). Higher retail land sales resulted in increased commission expense.  Other
selling  expenses  increased  to  $948,000  for the  first  nine  months of 2001
($318,000 for the third quarter of 2001) versus $906,000 for the comparable 2000
period ($333,000 for the third quarter of 2000) as a result of increased jobsite
expenses.  Advertising  and promotional  expenses  decreased to $168,000 for the
first  nine  months of 2001  ($33,000  for the  third  quarter  of 2001)  versus
$280,000 for the comparable 2000 period ($53,000 for the third quarter of 2000).

General and administrative expenses were $1,061,000 for the first nine months of
2001 ($331,000 for the third quarter of 2001) versus $987,000 for the comparable
2000 period ($303,000 for the third quarter of 2000). General and administrative
expenses increased primarily due to increased overhead expenses.

Real  estate  tax  expenses  were  $431,000  for the first  nine  months of 2001
($144,000 for the third quarter of 2001) versus $431,000 for the comparable 2000
period ($144,000 for the third quarter of 2000).

Interest  expense was $707,000 for the first nine months of 2001  ($166,000  for
the third  quarter of 2001)  versus  $695,000  for the  comparable  2000  period
($236,000 for the third quarter of 2000).  The year to date increase in interest
expense is a result of the debt balances  accruing interest at a higher interest
rate for the first two  quarters of the 2001  period.  The decrease in the third
quarter  interest  expense is a result of lower  interest rates being charged on
the debt balance.

Net Income (Loss)
-----------------

The Company  reported a profit of $120,000  for the first nine months of 2001 (a
profit of $15,000 for the third quarter of 2001) versus a net loss of ($402,000)
for the  comparable  2000 period (a profit of $69,000  for the third  quarter of
2000).

Regulatory Developments which may affect Future Operations
----------------------------------------------------------

In Florida,  as in many growth areas,  local governments have sought to limit or
control  population  growth in their  communities  through  restrictive  zoning,
density reduction,  the imposition of impact fees and more stringent development
requirements.  Although the Company has taken such factors into consideration in
its master  plans by  agreeing,  for example,  to make  improvements,  construct
public  facilities and dedicate  certain  property for public use, the increased
regulation  has  lengthened  the  development  process and added to  development
costs.

The  implementation  of the Florida  Growth  Management  Act of 1985 (the "Act")
precludes  the issuance of  development  orders or permits if public  facilities
such  as  transportation,  water  and  sewer  services  will  not  be  available
concurrent  with  development.  Development  orders have been  issued  for,  and
development  has  commenced  in,  the  Company's   existing   communities  (with
development  being  completed  in  certain  of  these  communities).  Thus,  the
Company's  communities  are  less  likely  to be  affected  by  the  new  growth
management policies than future communities. Any future communities developed by
the Company will be strongly impacted by new growth management  policies.  Since
the Act and its implications  are consistently  being re- examined by the State,
together  with  local  governments  and  various  state and  local  governmental
agencies,  the Company  cannot  further  predict the timing or the effect of new
growth management policies,  but anticipates that such policies may increase the
Company's permitting and development costs.

The Company's  real estate  business is subject to regulation by various  local,
state  and  federal  agencies.  The  communities  are  increasingly  subject  to
substantial regulation as they are planned, designed and constructed, the nature
of such regulation extending to improvements,  zoning, building,  environmental,
health and related matters. Although the Company has been able

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to  operate  within  the  regulatory  environment  in the past,  there can be no
assurance that such  regulations  could not be made more restrictive and thereby
adversely affect the Company's operations.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

   MORTGAGES AND SIMILAR DEBT

From  September 19, 1992 through  March 1999,  the Company had entered into loan
agreements with Selex International B.V., a Netherlands  corporation  ("Selex"),
Yasawa  Holdings,  N.V., a Netherlands  Antilles  Corporation  ("Yasawa"),  Swan
Development Corporation ("Swan") and related parties, including Scafholding B.V.
("Scafholding").  Since December,  1992, the Company has been dependent on loans
and advances from Selex,  Yasawa, Swan and their affiliates in order to meet its
working capital requirements.

As of December 31, 1999, the Company had satisfied its principal debt obligation
to  Scafholding.  The Company's  outstanding  debt to Yasawa as of September 30,
2001 was  $4,500,000.  The terms of  repayment of the  restructured  Yasawa loan
provide for  monthly  payments of  principal  in the amount of $100,000  payable
monthly  in cash or  with  contracts  receivable  at  100% of face  value,  plus
interest payable monthly on the declining balance at the rate, effective January
1, 1999,  of 6% per annum in cash or with  contracts  receivable  at 65% of face
value.  The interest  rate was again  changed  effective  January 1, 2001 to the
prime rate,  to be adjusted  semi-annually  thereafter,  to equal the prime rate
then in  effect.  From  January  2001 to June  2001,  the  interest  rate on the
outstanding  debt was 9.5%,  which was prime. As of July 2001, the interest rate
on the outstanding  debt has been adjusted to 6.5%,  which equals the prime rate
as of July 1, 2001.  Yasawa and  Scafholding did not require the Company to make
interest  payments for the period September 1, 1998 to September 30, 2001. As of
September  30,  2001,  the total  amount of  interest  accrued is  approximately
$1,384,000, which is included in accrued expenses.

From  October 9, 1998 through the  present,  Swan  continued to loan the Company
funds to meet its working capital  requirements.  The Company's outstanding debt
to Swan,  which is secured by a second lien on the  Company's  receivables,  was
$5,586,000 as of September  30, 2001.  The Company  signed a promissory  note to
Swan in March 1999 which  provides that funds advanced by Swan will be paid back
by the Company  monthly in  contracts  receivables  at 90% of face  value,  with
recourse.  There is no interest  for the first nine  months  after an advance of
money is received from Swan by the Company;  thereafter  the interest was 6% per
annum on the outstanding  balance of the advance.  The interest rate was changed
effective  January  1,  2001 to the prime  rate,  to be  adjusted  semi-annually
thereafter,  to equal the prime  rate then in  effect.  Each time an  advance is
made, a  supplemental  note is signed.  The amount of each monthly  payment will
vary and will be  dependent  upon the  amount  of  contracts  receivable  in the
Company's portfolio, excluding contracts receivable held as collateral for prior
receivable  sales.  Pursuant to the terms of the promissory note, the Company is
required to transfer to Swan  monthly as debt  repayment  all current  contracts
receivable  in  the  Company's  portfolio  in  excess  of the  aggregate  sum of
$500,000.  Funds advanced by Swan were used by the Company to meet the Company's
working capital requirements.  From January 2001 to June 2001, the interest rate
on the outstanding debt was 9.5%, which was prime. As of July 2001, the interest
rate on the outstanding  debt has been adjusted to 6.5%,  which equals the prime
rate as of July 1, 2001. As of September 30, 2001,  the total amount of interest
accrued is approximately $522,000, which is included in accrued expenses.

The following table presents  information  with respect to mortgages and similar
debt (in thousands):

                                                      September 30, December 31,
                                                          2001          2000
                                                      ------------- ------------

       Mortgage Notes Payable ......................  $   4,500     $   5,400
       Other Loans..................................      5,710         5,572
                                                      ---------     ---------
              Total mortgages and similar debt......  $  10,210     $  10,972
                                                      =========     =========
-------------

     Included  in  Mortgage  Notes  Payable is the Yasawa  loan  ($4,500,000  at
     September 30, 2001);  included in Other Loans is the Swan loan  ($5,586,000
     as of September 30, 2001).




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   CONTRACTS AND MORTGAGES RECEIVABLE SALES

In 1990 and 1992,  the  Company  sold  contracts  and  mortgages  receivable  to
unrelated third parties.  These transactions,  among other things,  require that
the Company replace or repurchase any receivable that becomes 90 days delinquent
upon the  request of the  purchaser.  Such  requirement  can be  satisfied  from
contracts  in which  the  purchaser  holds a  security  interest  (approximately
$1,206,000 as of September 30, 2001). The Company has reserved for the estimated
future  cancellations  of  these  contracts  based on the  Company's  historical
experience for receivables  the Company  services and believes these reserves to
be adequate.  The Company did not replace any delinquent  receivables in 2000 or
2001. As of September 30, 2001 and December 31, 2000,  $1,124,000 and $1,210,000
of these receivables were delinquent, respectively.

Since 1997, the Company sold contracts and mortgages receivable to related third
parties,  Scafholding and Swan. These transactions,  among other things, require
that the Company  replace any receivable  that becomes  eligible to be canceled.
Such requirement is satisfied monthly from contracts in the Company's receivable
portfolio  not otherwise  secured to unrelated  third  parties.  The Company has
reserved for the estimated future  cancellations of these contracts based on the
Company's  historical  experience  for  receivables  the  Company  services  and
believes these reserves to be adequate.

The  Company  was  the  guarantor  of  approximately  $19,081,000  of  contracts
receivable  sold or transferred  as of September 30, 2001, for the  transactions
described  above.  There  are  no  funds  on  deposit  with  purchasers  of  the
receivables  as security to assure  collectibility  as of such date. A provision
has been established for the Company's  obligation under the recourse provisions
of which approximately $2,733,000 remains at September 30, 2001. The Company has
been in compliance with all receivable  transactions  since the  consummation of
receivable sales.

In the  future,  if the Company  elects to do so,  Yasawa and  Scafholding  have
agreed to purchase contracts receivable at 65% of face value, with recourse. The
Company has an agreement  with Swan whereby Swan will loan the Company  funds to
be repaid with contracts receivable at 90% of face value, with recourse.

  ACQUISITION OF HOMES UNDER CONSTRUCTION

In January 2000, the Company purchased 16 lots and homes under construction from
Scafholding for approximately $862,000. This amount represents Scafholding's lot
cost  and  payments  to date to the  home  builder.  This  transaction  was 100%
financed by Swan under its existing note payable arrangement.

  LIQUIDITY

Retail land sales have  traditionally  produced  negative  cash flow through the
point of sale as a result of a regulatory  requirement  to sell fully  developed
lots and the additional  requirement to pay marketing and selling expenses prior
to or shortly  after the point of sale. In an effort to offset the negative cash
flow  effects of  installment  land sales,  the  Company is  directing a greater
portion  of its  marketing  efforts  to the sale of lots  with  homes and is now
offering lots for sale in compulsory  building  areas where a lot purchaser must
complete  payments for the lot and  construct a home within a limited  period of
time.

The Company has been  dependent on its ability to sell or otherwise  finance its
contracts   receivable   and/or   secure  other   financing  to  meet  its  cash
requirements.  Since 1992,  the Company has been  largely  dependent  on Yasawa,
Scafholding  and Swan and related  parties for the financing of its  operations.
Although  Scafholding has purchased contracts  receivables at the rate of 65% of
face value, with recourse,  and Swan has loaned the Company  additional funds to
be paid back with  contracts  receivable at the rate of 90% of face value,  with
recourse,  there can be no  guarantee  that the Company will be able to generate
sufficient  receivables  to obtain  sufficient  financing  in the future or that
Yasawa, Scafholding,  Swan and other related parties will continue to make loans
to the Company.



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<PAGE>


                           PART II - OTHER INFORMATION
                           ===========================

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

        (a)  Exhibits

               None.

        (b)  Reports on Form 8-K

               None.





                                    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 thereunto duly authorized.



                                             THE DELTONA CORPORATION


Date: October 31,  2001                      By: /s/John Battle
      ------------------                         -------------------------------
                                                 John  Battle
                                                 Treasurer
                                                 (Principal Financial Officer)


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