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, 2002
                               -------------------

                                       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, 2002.



<PAGE>



                          PART I- FINANCIAL INFORMATION
                          -----------------------------


ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                 -----------------------------------------------
                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                    ----------------------------------------
                                 ($000 Omitted)




                                                   September 30,    December 31,
                                                       2002             2001
                                                   -------------    ------------
<S>                                                <C>              <C>
                     ASSETS
                     ------

Cash and cash equivalents, including escrow
 deposits and restricted cash of $424 in 2002
 and $561 in 2001 ..............................   $    699         $    923
                                                   --------         --------
Contracts receivable for land sales - net ......      1,007            1,213
                                                   --------         --------
Mortgages and other receivables - net ..........        173              248
                                                   --------         --------

Inventories (b):
 Land and land improvements ....................      7,399            7,941
 Other .........................................      1,084            1,261
                                                   --------         --------
        Total inventories ......................      8,483            9,202
                                                   --------         --------

Property, plant, and equipment at cost - net ...        601              623
Investment in Venture ..........................         52               53
Prepaid expenses and other .....................        866            1,168
                                                   --------         --------
                        Total ..................   $ 11,881         $ 13,430
                                                   ========         ========



                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
                -------------------------------------------------


Mortgages and similar debt(c):
 Mortgage notes payable ........................   $  3,300         $  4,200
 Other loans ...................................      6,641            6,077
                                                   --------         --------
        Total mortgages and similar debt .......      9,941           10,277

Accounts payable, accrued expenses,
 customers' deposits ...........................      6,770            7,045
Deferred revenue ...............................      3,625            4,425
                                                   --------         --------
                Total liabilities ..............     20,336           21,747
                                                   --------         --------

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 ...............................     52,510           52,440
 Accumulated deficit ...........................    (74,509)         (74,301)
                                                   --------         --------
                Total stockholders' equity
                (deficiency) ...................     (8,455)          (8,317)
                                                   --------         --------
                        Total ..................   $ 11,881         $ 13,430
                                                   ========         ========
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,
                                         2002           2001             2002           2001
                                     -------------  -------------    -------------  -------------
<S>                                  <C>            <C>              <C>            <C>
Revenues (a):
 Net land sales ..................   $      3,965   $      5,909     $        927   $      1,816
 House sales .....................          4,092          2,821            1,757            881
 Recognized improvement revenue /
  prior period sales .............            232             91              103             50
 Gain on recovery of bad debt ....              0            178                0              0
 Interest income .................            298            300               73             70
 Other revenues ..................            593            632              175            212
                                     ------------   ------------     ------------   ------------
     Total .......................          9,180          9,931            3,035          3,029
                                     ------------   ------------     ------------   ------------

Costs and expenses (a):
 Cost of sales and improvements ..          4,711          3,975            1,867          1,231
 Selling, general, administrative
  and other expenses .............          4,311          5,129            1,316          1,617
 Loss in Joint Venture ...........             16              0               12              0
Interest expense (c)(e) ..........            350            707              133            166
                                     ------------    -----------     ------------    -----------
     Total .......................          9,388          9,811            3,328          3,014
                                     ------------    -----------     ------------    -----------

Net Income (Loss) ................   $       (208)   $       120     $       (293)   $        15
                                     ============    ===========     ============    ===========

Net Income (Loss) per common share   $       (.01)   $       .01     $       (.02)   $       .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, 2002 AND SEPTEMBER 30, 2001
                    -----------------------------------------
                                 ($000 Omitted)


                                                        Nine Months Ended
                                                   -----------------------------
                                                   September 30,   September 30,
                                                       2002            2001
                                                   -------------   -------------
<S>                                                <C>             <C>

Cash flows from operating activities ...........   $(1,779)        $(3,224)
                                                   -------         -------

Cash flows from investing activities:
 Payment for acquisition of equipment ..........       (44)            (62)
                                                   -------         -------

Cash flows from (used in)financing activities:
  New borrowings ...............................     1,640           3,600
  Repayments of notes ..........................       (41)              0
                                                   -------         -------
        Net cash provided by funding activities.     1,599           3,600
                                                   -------         -------

Net increase (decrease) in cash and cash
 equivalents (including escrow deposits and
 restricted cash) ..............................      (224)            314

Cash and cash equivalents beginning of period ..       923             680
                                                   -------         -------

Cash and cash equivalents end of period ........   $   699         $   994
                                                   =======         =======



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, 2002 AND SEPTEMBER 30, 2001
                    -----------------------------------------
                                 ($000 Omitted)


                                                        Nine Months Ended
                                                   -----------------------------
                                                   September 30,   September 30,
                                                       2002            2001
                                                   -------------   -------------
<S>                                                <C>             <C>

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

  Net income (loss) ............................   $  (208)        $   120
                                                   -------         -------

Adjustments to reconcile net loss to net cash
 provided by (used in) operating activities:

  Depreciation and amortization ................        68              45
  Provision for estimated uncollectible
   sales-net ...................................       (54)          1,751
  Contract valuation discount, net of
   amortization ................................       (31)            (82)
  Imputed Interest on debt with related party ..        70              24
  Loss on Joint Venture ........................        16               0
  Net change in assets and liabilities .........    (1,640)         (5,082)
                                                   -------         -------
        Total adjustments ......................   $(1,572)        $(3,344)
                                                   -------         -------

  Net cash provided by (used in) operating
   activities...................................   $(1,779)        $(3,224)
                                                   =======         =======

  Supplemental disclosure of non cash investing
   and financing activities:

  Purchase of equipment with note payable ......   $     0         $   127
                                                   =======         =======

  Reduction of debt as a result of the
   conveyance of contracts receivable ..........   $ 1,935         $ 4,486
                                                   =======         =======



See accompanying notes.
</TABLE>
                                        5
<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                               SEPTEMBER 30, 2002
                               ------------------

THE INFORMATION PRESENTED HEREIN AS OF SEPTEMBER 30, 2002 FOR THE THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 IS UNAUDITED.

(a)  BASIS OF PRESENTATION

     The condensed unaudited financial statements of The Deltona Corporation and
     subsidiaries  ("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  accounting  principles  generally
     accepted in the United  States of America  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, 2002 are not  necessarily  indicative  of the
     results that may be expected for the year ending  December 31, 2002.  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 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
     consolidated  financial  statements do not include any adjustments relating
     to the recoverability of asset amounts or the amounts of liabilities should
     the Company be unable to continue as a going concern.

     The Company has been dependent on its ability to sell or otherwise  finance
     contracts receivable and/or secure other financing sources to meet its cash
     requirements. Additional financing was required in the three and nine month
     periods ended  September 30, 2002 and was funded through  additional  loans
     from Swan, an affiliated company.  Additional financing will be required in
     the future.  Although  Swan has loaned the Company  additional  funds to be
     paid back with contracts  receivable at the rate of 90% of face value, with
     recourse  since 1999,  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.

(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,
                                                          2002         2001
                                                      ------------- ------------

        Unimproved land.............................  $    420      $    420
        Land in various stages of development.......     2,622         2,147
        Fully improved land.........................     4,357         5,374
                                                      --------      --------
               Total................................  $  7,399      $  7,941
                                                      ========      ========

(c)  MORTGAGES AND SIMILAR DEBT

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

                                                      September 30, December 31,
                                                          2002         2001
                                                      ------------- ------------

        Mortgage Notes Payable .....................  $   3,300     $   4,200
        Other Loans.................................      6,641         6,077
                                                      ---------     ---------
               Total mortgages and similar debt.....  $   9,941     $  10,277
                                                      =========     =========

                                        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  ($3,300,000  at
     September 30, 2002);  included in Other Loans is the Swan loan  ($6,533,000
     as of September 30, 2002).

     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.

     The  Company's  outstanding  debt to Yasawa as of  September  30,  2002 was
     $3,300,000.  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, with recourse.
     Interest  accrues  on the  declining  balance at the prime  rate,  adjusted
     semi-annually to equal the prime rate then in effect.  From January 2002 to
     September 30, 2002,  the interest rate on the  outstanding  debt was 4.75%,
     which was prime.  Yasawa and  Scafholding  have not required the Company to
     make interest  payments since  September 1, 1998. As of September 30, 2002,
     the total amount of interest accrued is approximately $2,226,000,  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 was  $6,533,000  as of September  30,  2002.  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.  The Company has
     recognized  the loss on the transfer at less than face value as a component
     of the estimated  uncollectible sales expense. There is no interest for the
     first six months after the Company  receives an advance of money from Swan.
     Currently,  the interest rate is the prime rate, adjusted  semi-annually to
     equal the prime rate then in effect (4.75% as of September 30, 2002).  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. Under these repayment
     terms,  the Company  transferred  contracts  receivable of $4.2 million and
     recognized the losses on the transfers of $424,000 for the year ended 2001.
     For each of the nine month periods ending  September 30, 2002 and 2001, the
     transfers  were  $1.0  million  and  $3.6  million,  on which  the  Company
     recognized  losses on  transfers of $100,000  and  $360,000,  respectively.
     Funds  advanced  by Swan were  used by the  Company  to meet the  Company's
     working capital requirements.  From January 2002 to September 30, 2002, the
     interest rate on the  outstanding  debt was 4.75%,  which was prime.  As of
     September 30, 2002, the total amount of interest  accrued is  approximately
     $765,000, which is included in accrued expenses.

     For 2002 and 2001 , the  Company  recorded  interest  expense for the first
     nine months of each loan advance from Swan that is non- interest bearing at
     the  prime  rate.  Since  the  interest  is not  paid to Swan,  the  amount
     calculated  is  recorded  as a capital  contribution  increase  to  capital
     surplus.  For the first nine months of 2002, the Company recorded  interest
     expense and a capital contribution in the amount of approximately $70,000.

     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 may loan the
     Company funds to be repaid with contracts  receivable at 90% of face value,
     with recourse.

(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.


                                        7
<PAGE>



(e)  CAPITALIZED INTEREST

     The  Company   capitalizes   interest  cost  incurred  during  a  project's
     construction period.  Interest expense incurred prior to capitalization was
     $385,000  and $744,000  for the nine months  ended  September  30, 2002 and
     September  30,  2001,  respectively.  Interest in the amount of $36,000 and
     $37,000 was  capitalized  for the nine months ended  September 30, 2002 and
     2001, 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)  CAPITAL TRANSACTION

     On  December  13,  2001,  the Board of  Directors  approved a 1 for 500,000
     reverse split of the Company's common stock and a related  amendment to the
     Company's  Articles  of  Incorporation  reducing  the number of  authorized
     shares to 30. Both actions are subject to stockholder approval. The Company
     has filed a Form 13E(3) and a preliminary  proxy  statement  related to the
     proposals.  The effect of the reverse split will be to reduce the number of
     the Company's stockholders to two stockholders: Selex International,  B.V.,
     a  Netherlands   corporation   ("Selex")  and  Yasawa  Holdings,   N.V.,  a
     Netherlands  Antilles  corporation  ("Yasawa").  The date of the meeting of
     stockholders   to  consider  both  matters  will  be  determined  upon  the
     conclusion of SEC review.

(h)  RELATED PARTY TRANSACTION

     During  2001,  the Company  entered  into a joint  venture  agreement  (the
     "Venture") with Scafholding for the purchase of property tax  certificates,
     application of tax deeds,  administration  and the  acquisition and sale of
     land. The Company provides administrative,  managerial, sales and marketing
     services to the Venture.  The Company is  reimbursed by the Venture for all
     commissions  and marketing costs plus an  administrative  fee of 10% of all
     sales  consummated.  Scafholding  provides financing to the Venture and has
     loaned the Venture approximately $1,369,000 as of September 30, 2002. There
     were no  reimbursements  for the nine  months  ended  September  30,  2002.
     Administrative fees in the amount of $1,960 were earned for the nine months
     ended  September  30,  2002;  no  administrative  fees were earned in 2001.
     Interest on the  outstanding  debt  accrues at the fixed rate of 7.75% (the
     prime  rate as of July 1,  2001  plus one  percent).  Net  income  is to be
     distributed  equally  between  the  Company  and  Scafholding.  The Company
     records its investment in the Venture using the equity method of accounting
     as control of the Venture rests with  Scafholding as specified in the joint
     venture agreement.


                                        8
<PAGE>



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

This  report on Form 10-Q of the  Company  for the three and nine  months  ended
September 30, 2002  contains  certain  forward-  looking  statements  within the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to be
covered by the safe harbors created thereby.  To the extent that such statements
are  not   recitations   of  historical   fact,   such   statements   constitute
forward-looking   statements   which,   by   definition,   involve   risks   and
uncertainties.  In particular,  statements under Item 2, Management's Discussion
and  Analysis  of  Financial   Condition  and  Results  of  Operation,   contain
forward-looking statements. Where, in any forward-looking statement, the Company
has an expectation or belief as to future results or events, such expectation or
belief is  expressed in good faith and believed to have  reasonable  basis,  but
there can be no  assurance  that the  statement  of  expectation  or belief will
result or be achieved or accomplished.

RESULTS OF OPERATIONS

For the nine months ended September 30, 2002 and September 30, 2001.

Revenues
--------

Total revenues were $9,180,000 for the first nine months of 2002 ($3,035,000 for
the quarter ending September 30, 2002) compared to $9,931,000 for the comparable
2001 period ($3,029,000 for the quarter ending September 30, 2001).

Gross land sales were  $5,093,000 for the first nine months of 2002  ($1,300,000
for the quarter ending  September 30, 2002) compared to $7,758,000 for the first
nine months of 2001  ($2,305,000 for the quarter ending September 30, 2001). Net
land sales (gross land sales less estimated uncollectible  installment sales and
contract valuation  discount)  decreased to $3,965,000 for the first nine months
of 2002 ($927 ,000 for the  quarter  ending  September  30,  2002)  compared  to
$5,909,000 for the first nine months of 2001  ($1,816,000 for the quarter ending
September  30,  2001).  The decrease in sales  reflects  lower land sales by the
Company's independent dealers.

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,  2002 and  September  30,  2001 were
$4,820,000 and  $8,602,000,  respectively  and $1,433,000 and $2,887,000 for the
three months ended September 30, 2002 and 2001, respectively.  The Company had a
backlog of approximately  $2,406 ,000 in unrecognized  sales as of September 30,
2002.  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.

Housing  revenues  were  $4,092,000  for the first  nine  months of 2002  versus
$2,821,000 for the  comparable  2001 period.  Revenues are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues  increased as of result of more homes being  closed in the period.  The
backlog of houses under contract,  including both houses under  construction and
to be  constructed,  was  $8,034,000 and $3,019,000 as of September 30, 2002 and
September 30, 2001, respectively.

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

<TABLE>
<CAPTION>

                               Nine Months Ended          Three Months Ended
                         September 30, September 30, September 30, September 30,
                             2002          2001          2002          2001
                         ------------- ------------- ------------- -------------
<S>                      <C>           <C>           <C>           <C>
  Gross Land Sales...... $ 5,093       $   7,758     $ 1,300       $ 2,305
                         -------       ---------     -------       -------
  Housing Sales.........   4,092           2,821       1,757           881
                         -------       ---------     -------       -------
    Total Real Estate... $ 9,185       $  10,579     $ 3,057       $ 3,186
                         =======       =========     =======       =======
</TABLE>

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 $232,000 for the first nine first nine months of 2002 ($103,000
for the third  quarter of 2002) versus  $91,000 for the  comparable  2001 period
($50,000 for the third quarter of 2001).

Interest  income was $298,000 for the first nine months of 2002 ($73,000 for the
third quarter of 2002) versus  $300,000 for the comparable  2001 period ($70,000
for the third quarter of 2001).

                                        9
<PAGE>



Other  revenues  were  $593,000 for the first nine months of 2002 ($174 ,000 for
the third  quarter of 2002)  versus  $632,000  for the  comparable  2001  period
($212,000  for the  third  quarter  of 2001).  Other  revenues  are  principally
generated  by  the  Company's   title   insurance  and  real  estate   brokerage
subsidiaries.

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

Costs and expenses were $9,388,000 for the first nine months of 2002 ($3,328,000
for the third quarter of 2002) versus  $9,811,000 for the comparable 2001 period
($3,014,000 for the third quarter of 2001).

Cost of sales  increased to $4,711,000 from $3,975,000 for the first nine months
of 2002  compared  to 2001,  and to  $1,867,000  from  $1,231,000  for the third
quarter of 2002 for the third quarter of 2002 compared to 2001.  The higher cost
of sales is due to a higher percentage of housing sales .

Commissions and other selling  expenses  decreased to $2,620,000 from $3,469,000
for the first  nine  months  of 2002  compared  to 2001,  and to  $790,000  from
$1,109,000  for the third quarter of 2002  compared to 2001.  Retail land sales,
which have a higher percentage  selling costs,  decreased;  housing sales, which
have a lower percentage  selling costs,  increased.  Advertising and promotional
expenses decreased to $97,000 for the first nine months of 2002 ($34,000 for the
third quarter of 2002) versus  $168,000 for the comparable  2001 period ($33,000
for the third  quarter  of  2001).  General  and  administrative  expenses  were
$1,163,000  for the first nine months of 2002 ($348,000 for the third quarter of
2002) versus  $1,061,000 for the comparable 2001 period  ($331,000 for the third
quarter of 2001). General and administrative expenses increased primarily due to
increased  overhead  expenses.  Real estate tax expenses  were  $431,000 for the
first  nine  months of 2002  ($144,000  for the third  quarter  of 2002)  versus
$431,000  for the  comparable  2001 period  ($144,000  for the third  quarter of
2001).

Interest  expense was $350,000 for the first nine months of 2002  ($133,000  for
the third  quarter of 2002)  compared to  $707,000  for the first nine months of
2001 ($166,000 for the third quarter of 2001).  The decrease in interest expense
is a result of debt balances  accruing interest at a lower interest rate. For an
expanded discussion of the Company's debt agreements, see the following section,
"Liquidity and Capital Resources".

Net Income
----------

The Company reported a net loss of $208,000 for the first nine months of 2002 (a
net loss of  $293,000  for the third  quarter  of 2002)  versus a net  income of
$120,000 for the  comparable  2001 period (a net income of $15,000 for the third
quarter of 2001).  The decrease in earnings is primarily  attributable  to lower
land sales  through the  Company's  independent  dealers.  The Company has taken
actions to increase its housing and land sales, including efforts to continue to
seek new independent broker representatives.

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.



                                       10
<PAGE>



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 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 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.

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.

The  Company's  outstanding  debt  to  Yasawa  as  of  September  30,  2002  was
$3,300,000.  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,  with  recourse.  Interest
accrues on the declining  balance at the prime rate,  adjusted  semi-annually to
equal the prime rate then in effect.  From January  2002 to September  30, 2002,
the interest rate on the outstanding debt was 4.75%, which was prime. Yasawa and
Scafholding  have not  required  the  Company to make  interest  payments  since
September  1, 1998.  As of  September  30,  2002,  the total  amount of interest
accrued is approximately $2,226,000, 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 was $6,533,000 as of September 30, 2002. 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.  The Company has recognized the loss on the transfer at less than
face value as a component of the estimated uncollectible sales expense. There is
no interest  for the first six months  after the Company  receives an advance of
money  from Swan.  Currently,  the  interest  rate is the prime  rate,  adjusted
semi-annually  to equal the prime rate then in effect (4.75% as of September 30,
2002). 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.  Under these  repayment  terms,  the Company
transferred  contracts  receivable of $4.2 million and  recognized the losses on
the  transfers of $424,000  for the year ended 2001.  For each of the nine month
periods ending  September 30, 2002 and 2001, the transfers were $1.0 million and
$3.6 million,  on which the Company  recognized  losses on transfers of $100,000
and $360,000,  respectively.  Funds advanced by Swan were used by the Company to
meet the Company's working capital requirements.  From January 2002 to September
30, 2002, the interest rate on the outstanding debt was 4.75%,  which was prime.
As of September 30, 2002, the total amount of interest  accrued is approximately
$765,000, which is included in accrued expenses.

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


                                                      September 30, December 31,
                                                          2002         2001
                                                      ------------- ------------

        Mortgage Notes Payable .....................  $   3,300     $   4,200
        Other Loans.................................      6,641         6,077
                                                      ---------     ---------
               Total mortgages and similar debt.....  $   9,941     $  10,277
                                                      =========     =========

---------
     Included  in  Mortgage  Notes  Payable is the Yasawa  loan  ($3,300,000  at
     September 30, 2002);  included in Other Loans is the Swan loan  ($6,533,000
     as of September 30, 2002).


                                       11
<PAGE>



        CONTRACTS AND MORTGAGES RECEIVABLE SALES

In 1990 and 1992, the Company sold  contracts and mortgages  receivable to 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  $1,019,000 as of September
30, 2002). The Company has reserved for the estimated future cancellations 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 under these transactions in 2001 or 2002. As of September
30, 2002 and December 31, 2001,  $996 ,000 and  $1,060,000 in  receivables  were
delinquent, respectively.

Since 1997,  the Company sold or transferred  for debt  repayment  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.  Approximately
$17,969,000 of outstanding contracts receivable, subject to recourse provisions,
were  sold or  transferred  as of  September  30,  2002,  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 $2,728,000 remains at September 30, 2002. The Company has
been in compliance with all receivable  transactions  since the  consummation of
receivable sales.

The Company has an agreement with Scafholding and Citony Development Corporation
for  the  servicing  of  their  receivable  portfolios.   The  Company  received
approximately  $110,000 for the nine months ended September 30, 2002 and $73,000
for the year 2001 in revenue pursuant to these agreements.

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 may loan the Company funds to be
repaid with contracts receivable at 90% of face value, with recourse.

        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 nor can
there be any guarantee that Yasawa, Scafholding,  Swan and other related parties
will continue to make loans to the Company.

                                       12
<PAGE>



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


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

        (a)  Exhibits

               See attached Exhibit 99.1 for Certification pursuant to 18 U.S.C.
               Section 1350, as adopted  pursuant to Section 906 of the Sarbanes
               - Oxley Act of 2002 (CEO Certification by Antony Gram)

               See attached Exhibit 99.2 for Certification pursuant to 18 U.S.C.
               Section 1350, as adopted  pursuant to Section 906 of the Sarbanes
               - Oxley Act of 2002 (CFO Certification by Robert O. Moore)

        (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: November  14, 2002                By: /s/Robert O. Moore
                                            --------------------------------
                                            Robert O. Moore,
                                            Treasurer & Chief Financial Officer


                                       13
<PAGE>