SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549



                          Form 10-QSB/A
                        (Amendment No. 1)



     [ x ] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended June 30, 2002

     [   ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934

         For the transition period from _________ to _________


                  Commission file number 000-32409


                       UNITED MORTGAGE TRUST


          (Exact Name of Registrant as Specified in its
                      Governing Instruments)

     (a Maryland trust)        (IRS Employer Identification
                                     Number 75-6496585)



                    5740 Prospect Avenue
                        Suite 1000
                    Dallas, Texas 75206
                      (214) 237-9305



     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 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 ___




                               (i)
<PAGE>


EXPLANATORY NOTE:

This Form 10QSB/A is being filed to reissue United Mortgage Trust's
financial statements. In December 2002, upon its review of our 2001
audited financial statements, the Securities and Exchange Commission
(SEC) notified us that an inter-company items arising from
transactions with our advisor were not properly reported on our
statements of income.  The SEC commented that it was not appropriate
for us to report inter-company items with our advisor as items of
income. In accordance with the SEC requirements, we are reissuing
our quarterly report and notes thereto and the inter-company item
referred to in 2002 as the Advisor's Contribution is not recorded on
the reissued statements. This report is also amended to reflect a
change in the status of shares sold after May 1, 2002, which are
classed as redeemable.

UNITED MORTGAGE TRUST
INDEX TO FORM 10-QSB
                                                      Page Number

PART I  -- FINANCIAL INFORMATION . . . . . . . . . . . . . .2

Item 1. Financial Statements . . . . . . . . . . . . . . . .2

     Balance Sheets
        June 30, 2002 and December 31, 2001 . . . . . . . . 2

     Statements of Income
        Three Months and Six Months
          ended June 30, 2002 and 2001. . . . . . . . . . . 3

     Statements of Cash Flows
        Six Months ended June 30, 2002 and 2001 . . . . . . 4

     Notes to Financial Statements. . . . . . . .  . . . . .5

Item 2. Management's Discussion and Analysis
  of Results of Operations and Financial Condition . . . . .7

PART II -- OTHER INFORMATION . . . . . . . . . . . . . . . 13

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 13

SIGNATURE . . . . . . . . . . . . . . . . . . . . . . . . .14

Accountants' Review Report . . . . . . . . . . . . . . . . 15

Exhibit 99.1 - Certifications . . . . . . . . . . . . . . .16





                                 -1-
<PAGE>


PART I  -- FINANCIAL INFORMATION
<TABLE>
                             UNITED MORTGAGE TRUST
                            BALANCE SHEETS (Restated)
<CAPTION>
                                            June 30,      December 31,
                                              2002             2001
                                           ----------------------------
                                           (unaudited)      (audited)
ASSETS
<S>                                        <C>              <C>
Cash                                       $   615,596       $   33,569
Investment in residential mortgages
  and contracts for deed                    40,359,869       39,683,243
Interim mortgages                           29,273,987       17,529,898
Accrued interest receivable                  1,560,441        1,229,360
Receivable from affiliate                      129,625          115,930
Equipment, less accumulated depreciation
  of $3,076 and $2,296, respectively            10,336            1,896
Other assets                                   188,165          191,725
                                           -----------       ----------
Total Assets                               $72,138,019      $58,785,621
                                           -----------       ----------
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Line of credit                           $ 1,300,000      $   810,000
  Dividend payable                             668,000          543,413
  Accounts payable & accrued
    liabilities                                  9,057          141,724
                                           -----------       ----------
      Total Liabilities                    $ 1,977,057      $ 1,495,137
                                           -----------       ----------
Commitments and contingencies

Shares of beneficial interest redeemable,
  272,340 shares issued and outstanding      5,447,938           --

Shareholders' equity:
  Shares of beneficial interest; $.01 par
    Value; 100,000,000 shares authorized;
    3,849,011 and 3,332,161 shares
    issued and 3,783,263 and 3,290,024
      outstanding, respectively            $    38,490      $    33,322
  Additional paid-in capital                66,686,940       58,352,176
  Advisor's contribution                       397,588          397,588
  Cumulative distributions in
    excess of earnings                      (1,109,964)        (742,612)
  Retained earnings	                        --               --
                                           -----------       ----------
                                            66,013,054       58,040,474
  Less treasury stock, 66,644 and
    39,047 shares in 2002 and 2001,
    at cost                                 (1,300,030)       (749,990)
                                           -----------       ----------
      Total Shareholders' Equity           $64,713,024      $57,290,484
                                           -----------       ----------
Total Liabilities and
   Shareholders' Equity                    $72,138,019      $58,785,621
                                           -----------       ----------
<FN>
See accompanying notes to financial statements.
</FN>
</Table>

                                  -2-

<PAGE>
                           UNITED MORTGAGE TRUST
                           STATEMENTS OF INCOME (Restated)


<TABLE>
<CAPTION>
                                 Three Months Ended       Six Months Ended
                                      June 30,                 June 30,
                               2002              2001   2002              2001
                               ----------------------   ----------------------
                                     (unaudited)              (unaudited)
<S>                            <C>         <C>          <C>         <C>
Revenues:
  Interest income              $1,997,755  $1,334,244   $3,678,925  $2,537,042
  Gain on sale of notes            (1,842)     10,267       (1,034)     10,267
                               ----------  ----------   ----------  ----------
                               $1,995,913  $1,344,511   $3,677,891  $2,547,309
                               ----------  ----------   ----------  ----------
Expense:
  General and administrative       31,649      10,585       85,251      19,142
  Interest expense                  2,844     135,043       17,989     315,770
  Loan servicing fee               50,791      45,733       97,319      89,895
  Management fee                  100,491      57,587      183,854     109,470
                               ----------  ----------   ----------  ----------
                                  185,775     248,948      384,413     534,277
                               ----------  ----------   ----------  ----------
Net income                     $1,810,138  $1,095,563   $3,293,478  $2,013,032
                               ==========  ==========   ==========  ==========
Net income per share
   of beneficial interest           $0.47       $0.45        $0.90       $0.90
                               ==========  ==========   ==========  ==========

Weighted average
    shares outstanding          3,865,715   2,423,289    3,659,755   2,236,106
                               ==========  ==========   ==========  ==========

<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>



                                   -3-
<PAGE>


<TABLE>
<CAPTION>
                           UNITED MORTGAGE TRUST
                       STATEMENTS OF CASH FLOWS (Restated)

                                              For the Six Months Ended
                                                       June 30,
                                                  2002          2001
                                             --------------------------
                                             (unaudited)    (unaudited)
<S>                                          <C>            <C>
Cash flows from operating activities:
  Net income                                  $ 3,293,478   $2,013,032
  Adjustments to reconcile net income
    to net cash provided by operating
    activities:
      Depreciation and amortization                (8,440)         259
      Net amortization of discount on
        mortgage investments                       (7,774)      (1,892)
      Changes in assets and liabilities:
        Accrued interest receivable              (331,081)    (117,511)
        Other assets                                6,726     (221,290)
        Accounts payable and accrued
          liabilities                            (132,667)      21,322
          Net cash provided by operating      -----------    ---------
            activities:                         2,820,242    1,693,920
                                              -----------    ---------
Cash flows from investing activities:
  Investment in residential mortgages
    and contracts for deed                     (2,374,141)  (5,684,372)
  Principal receipts on residential
    mortgages and contracts for deed            1,700,010    1,497,705
  Investment in interim mortgages             (24,059,669)  (9,738,891)
  Principal receipts on interim mortgages      12,320,861    5,462,394
        Net cash used in investing            -----------   ----------
         activities:                          (12,412,939)  (8,463,164)
                                              -----------   ----------
Cash flows from financing activities:
  Proceeds from issuance of shares of
    beneficial interest                        13,785,042   12,040,677
  Purchase of treasury stock                     (550,040)      --
  Net borrowings (payments)on
    credit line                                   490,000   (3,350,000)
  Receivable from affiliate                       (13,696)      13,871
  Dividends                                    (3,536,582)  (2,120,722)
        Net cash provided by financing        -----------   ----------
          activities:                          10,174,724    6,583,826
                                              -----------   ----------
Net increase (decrease)in cash                    582,027     (185,418)

Cash at beginning of period                        33,569      200,912
                                              -----------   ----------
Cash at end of period                         $   615,596   $   15,494
                                              -----------   ----------
Interest paid                                 $    17,989   $  315,770
                                              -----------   ----------
<FN>
See accompanying note to financial statements.
</FN>
</TABLE>

                             -4-
<PAGE>

                            UNITED MORTGAGE TRUST
                       Notes to Financial Statements
                               June 30, 2002

1. Description of Business

The Company

    United Mortgage Trust ("the Company") is a Maryland real estate
investment trust which qualifies as a real estate investment trust (a
"REIT") under federal income tax laws. The Advisor to the Company is
UMT Advisors, Inc., (the "Advisor") a Texas corporation.  The Company
invests exclusively in first lien, fixed rate mortgages secured by
single-family residential property throughout the United States.  Such
loans are originated by others to the Company's specifications or to
specifications approved by the Company.  Most, if not all, of such
loans are not insured or guaranteed by a federally owned or guaranteed
mortgage agency.

     The Company is offering up to 5,000,000 Shares of Beneficial
Interest at $20 per share on a "best efforts" basis.  In addition, we
are offering up to 750,000 Shares to investors who want to participate
in our Reinvestment Plan.

Restatement

     This Form 10QSB/A is being filed to reissue United Mortgage
Trust's financial statements. In December 2002, upon its review of its
2001 audited financial statements and the financial statements for the
nine months ended September 30, 2002, the Securities and Exchange
Commission (SEC) notified the Company that inter-company items arising
from transactions with its advisor were not properly reported on its
statements of income.  The SEC commented that it was not appropriate
for the Company to report inter-company items with its advisor as items
of income. In accordance with the SEC requirements, the Company has
reissued its financial statements for the year ended 2001 and its 2002
quarterly reports and the inter-company items were not recorded on the
reissued statements. During the first and second quarter of 2001, there
were no restated transactions affecting the financial statements. In
the first and second quarters of 2002 the Company recorded a non-cash
transaction of $200,000 and $100,000, respectively, and herein has
reversed the transactions. The result was a decrease in income and
shareholders' equity.

     In addition, due to the rescission offer that will be made to
Shareholders referred to in Note 5, the Company has reclassified the
value of the redeemable shares sold between May 1, 2002 and June 30,
2002 in the amount of $5,447,938.

                             -5-
<PAGE>
2. Basis of Presentation

     The accompanying unaudited financial statements were prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB of
Regulation S-B. They do not include all information and footnotes
required by generally accepted accounting principles for complete
financial statements. However, except as disclosed herein, there has
been no material change in information disclosed in the notes to the
financial statements for the year ended December 31, 2001 included in
the Company's 10-KSB filed with the Securities and Exchange Commission.
The interim unaudited financial statements should be read in
conjunction with those financial statements. In the opinion of
management, all adjustments considered necessary for a fair
presentation, consisting solely of normal recurring adjustments, were
made. Operating results for the three months and six months ended June
30, 2002 are not necessarily indicative of the results that may be
expected for the year ended December 31, 2002.

3. Line-of-Credit

     The Company has a twelve-month credit facility with a maximum
borrowing limit of $10,000,000, which expired on July 10 and was
renewed on July 11, 2002 with the same terms and conditions.  The line-
of-credit is collateralized with the assignment of certain Residential
Mortgages.  Interest on the outstanding balance was 5.25%. Outstanding
balances at June 30, 2002 and 2001 were $1,300,000 and $3,650,000,
respectively. Interest paid during the three-month and six-month
periods was $2,844 and $17,989 and $135,043 and $315,770, respectively.

4. Related Party Transactions

     The Company has an Advisory Agreement with its Advisor, UMT
Advisors, Inc. ("UMTA") to manage the day-to-day operations of the
Company and generally, the day-to-day expenses associated with running
the Company are born by UMTA. The Company was charged a Trust
Management Fee, calculated monthly, that was $100,491 and $57,587 for
the three-month periods ended June 30, 2002 and 2001, respectively, and
$183,854 and $109,470 for the six-month periods, respectively. The fee
was calculated as 1/12th of 1/2 of 1% of the first $50,000,000 of
income producing assets and 1/12th of 1% of income producing assets in
excess of $50,000,000.

    Under the terms of the Advisory Agreement the Company paid
Acquisition Fees to the Advisor for providing services related to
identifying and purchasing loans. The fee was calculated as 3% of Net
Proceeds (Gross Proceeds less selling commissions and wholesaling and
marketing allocations). Fees paid during the three-month periods were
$207,159 and $181,633, respectively. Fees paid during the six-month
periods were $405,990 and $378,649, respectively.

                                -6-
<PAGE>



     The Company has a Mortgage Servicing Agreement with Prospect
Service Corp. (formerly South Central Mortgage, Inc.), an affiliate,
incurring service fees of $50,791 and $45,733 for the three months and
$97,319 and $89,895 for the six months ended June 30, 2002 and 2001,
respectively.

5. RIGHT OF RESCISSION

     The Company faces a contingent liability for rescission to those
investors who purchased shares after April 30, 2002 and until the
effectiveness of the post-effective amendment No. 1 filed with the SEC
on November 4, 2002 and amended on January 14, 2003 as a result of the
failure to file an amendment within the time period specified.

     The Company was required to file a Post-Effective Amendment to its
original registration statement by April 30, 2002 to include updated
financial information and did not do so until November 4, 2002.  Because
the Company did not file a post-effective amendment with the required
financial statement information by April 30, 2002, persons who have
purchased shares in the Company since that date have the right to
rescind their purchases and to compel the Company to repurchase their
shares at the purchase price paid for them plus interest less
distributions made to them.  Since April 30, 2002 and through June 30,
2002, the Company has sold approximately 272,000 shares for Gross
Offering Proceeds of $5,447,000.

     As a result of this contingent liability, the Company will make a
rescission offer to all such purchasers.  Depending on the number of
shareholders who accept the offer the Company may have to sell assets to
fund the rescission. Selling assets in a material amount could have an
adverse impact on the income per share. The Company may also face other
securities law liabilities as a result of the delayed filing, the amount
of which is not capable of being quantified.


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

     This Form 10QSB/A is being filed to reissue United Mortgage
Trust's financial statements. In December 2002, upon its review of our
2001 audited financial statements and the financial statements for the
nine months ended September 30, 2002, the Securities and Exchange
Commission (SEC) notified us that inter-company items arising from
transactions with our advisor were not properly reported on our
statements of income.  The SEC commented that it was not appropriate
for us to report inter-company items with our Advisor as items of
income. In accordance with the SEC requirements, we have reissued our
financial statements for the year ended 2001 and its 2002 quarterly
reports and the inter-company items are not recorded on the reissued
statements. During the first and second quarter of 2001, there were no
restated transactions affecting the financial statements. In the first
and second quarter of 2002 the Company recorded a non-cash transaction
of $200,000 and $100,000, respectively, and with this filing have
reversed the transactions. The result was a decrease in income and
shareholders' equity.

                                    -7-
<PAGE>
      RESULTS OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS
                    ENDED JUNE 30, 2002 AND 2001

     We were formed on July 12, 1996, however our business operations
commenced in March 1997 when the Securities and Exchange Commission
issued an order of registration for our initial public offering of
Shares. A new registration was effective with the Securities and
Exchange Commission order dated June 4, 2001. The new registration
offers for sale an additional 5,750,000 shares of beneficial interest.
Of that amount, 750,000 shares were registered specifically for our
Dividend Reinvestment Plan. The new registration also has a provision
for limited liquidity with our quarterly Share Repurchase Plan. For
more information please refer to the prospectus dated June 4, 2001,
which is also available on our website www.unitedmortgagetrust.com.

   The following table sets forth certain information about the
Mortgage Investments that we purchased during the periods set forth
below.

                                            Three Months Ended
                                                 June 30,
                                        2002                   2001
                                        ---------------------------

RESIDENTIAL MORTGAGES
Purchase price                          $   518,000     $ 1,250,000
Total number                                     14              23
Number purchased from affiliates                  3               6
Number purchased from other sources              11             317
Blended interest rate                        13.83%          12.87%
Aggregate principal balance             $   518,000     $ 1,253,000
Average principal balance                   $37,000         $54,500
Remaining term in months (1)                    308             328
Current yield (1)                            13.83%          12.90%
Investment-to-value ratio (1)(2)             77.15%          77.13%

CONTRACTS FOR DEED
Purchase price                          $      -0-      $ 1,112,000
Total number                                   -0-               23
Number purchased from affiliates                                  1
Number purchased from other sources                              22
Blended interest rate                                        11.88%
Aggregate principal balance                             $ 1,117,000
Average principal balance                                   $48,600
Remaining term in months (1)                                    340
Current yield (1)                                            11.94%
Investment-to-value ratio (1)(2)                             80.18%


                                   -8-
<PAGE>



INTERIM MORTGAGES
Portfolio beginning balance at 3/31     $21,494,000     $ 8,575,000
Portfolio ended balance at 6/30         $29,274,000     $10,755,000
Net increase in portfolio
  from prior period                     $ 7,780,000     $ 2,180,000
Total number participated in
  during period                                 710             362
Number purchased from affiliates                493             362
Number purchased from other sources             217               0
Blended interest rate                        13.94%          12.83%
Remaining term in months: less than       12 months       12 months
Current yield at year-end (1)                14.14%          13.01%
Investment-to-value ratio (1)(2)             56.45%          54.00%

                                              Six Months Ended
                                                  June 30,
                                        2002                   2001
                                        ---------------------------

RESIDENTIAL MORTGAGES
Purchase price                          $ 2,214,000     $ 2,974,000
Total number                                     44              61
Number purchased from affiliates                  3              13
Number purchased from other sources              41              48
Blended interest rate                        13.45%          12.34%
Aggregate principal balance             $ 2,214,000     $ 2,992,000
Average principal balance                   $47,000         $48,700
Remaining term in months (1)                    338             323
Current yield (1)                            13.45%          12.41%
Investment-to-value ratio (1)(2)             78.62%          77.58%

CONTRACTS FOR DEED
Purchase price                          $   160,000     $ 2,621,000
Total number                                      3              53
Number purchased from affiliates                  1               1
Number purchased from other sources               2              52
Blended interest rate                        11.90%          11.72%
Aggregate principal balance             $   160,000     $ 2,628,000
Average principal balance                   $53,000         $49,600
Remaining term in months (1)                    338             333
Current yield (1)                            11.90%          11.75%
Investment-to-value ratio (1)(2)             73.01%          82.19%

INTERIM MORTGAGES
Portfolio beginning balance at 12/31    $17,530,000     $ 6,453,000
Portfolio ended balance at 6/30         $29,274,000     $10,729,000
Net increase in portfolio
  from prior period                     $11,744,000     $ 4,276,000
Total number participated in
  during period                                 830             414
Number purchased from affiliates                579             414
Number purchased from other sources             251               0
Blended interest rate                        13.82%          12.83%
Remaining term in months: less than       12 months       12 months
Current yield at year-end (1)                14.02%          13.01%
Investment-to-value ratio (1)(2)             56.45%          54.00%


                               -9-
<PAGE>

(1) These amounts were determined at the time the Mortgage Investments
were purchased.

(2) The investment-to-value ratio is determined at the time a Mortgage
Investment is acquired and is determined by dividing the amount paid to
acquire that Mortgage Investment by the value of the underlying real
estate that is security for that Mortgage Investment.

     As of June 30, 2002 our mortgage portfolio in the aggregate
consisted of 617 Residential Mortgages, 250 Contracts for Deed and 582
Interim Mortgages. During the 2002 three-month period 12 Residential
Mortgages or Contracts for Deed prepaid, and during the 2002 six-month
period 19 prepaid (when borrowers refinanced their homes with other
lenders). We purchase new Mortgage Investments with principal returned
from prepayments. As of the dates of purchase, the portfolio had an
unpaid principal balance of $69,355,000, and was purchased for a
discounted price of $68,522,000 (98.80% of the unpaid principal
balance). The portfolio had a blended interest rate of 12.46%, a
current annual yield of 12.61%, an investment-to-value ratio of 71.69%,
an average unpaid principal balance of $48,000, and an average term
remaining of 338 months for Residential Mortgages and Contracts for
Deed and less than 12 months for Interim Mortgages.

     By comparison as of June 30, 2001 our mortgage portfolio in the
aggregate consisted of 571 Residential Mortgages, 243 Contracts for
Deed and 291 Interim Mortgages. During the 2001 three-month period 17
Residential Mortgages or Contracts for Deed prepaid, and during the
six-month period 24 prepaid. As of the dates of purchase, the portfolio
had an unpaid principal balance of $48,350,000, and was purchased for a
discounted price of $47,450,000 (98.14% of the unpaid principal
balance). The portfolio had a blended interest rate of 11.97%, a
current annual yield of 12.20%, an investment-to-value ratio of 74.54%,
an average unpaid principal balance of $44,000, and an average term
remaining of 338 months for Residential Mortgages and Contracts for
Deed and less than 12 months for Interim Mortgages.

     All of the properties that were security for our Mortgage
Investments were located in the United States. Each of the properties
was adequately covered by a mortgagee's title insurance policy and
hazard insurance.

     During the three-month periods ended June 30, 2002 and 2001 our
investments generated approximately $1,996,000 and $1,345,000 of
interest income, which represented a 48% increase. During the six-month
periods interest income was approximately $3,678,000 and $2,547,000,
respectively, which represented a 44% increase. The increases were
attributed to a 44% growth in Mortgage Investments purchased between
periods using Net Offering Proceeds derived from the sale of our


                              -10-
<PAGE>


Shares. The portion of our portfolio dedicated to Residential Mortgages
and Contracts for Deed grew by 7% and the portion dedicated to Interim
Mortgages grew by 173% from June 30, 2001 to June 30, 2002.

     Operating expenses were approximately $183,000 and $114,000, a 61%
increase for the three-month periods, respectively, and were made up
primarily of Trust Management Fees paid to our Advisor of approximately
$100,000 and $58,000 (72% increase) and loan servicing fees of
approximately $51,000 and $46,000, (11% increase), respectively. The
percentage of change in the Trust Management Fees and loan servicing
fees fluctuates as the principal balances of loans in our portfolio
changes. Operating expenses in comparable six-month periods were
approximately $366,000 and $219,000, respectively, a 68% increase, made
up of Trust Management Fess of approximately $184,000 and $109,000 (69%
increase) and loan servicing fees of approximately $97,000 and $90,000,
(8% increase), respectively.

     Operating expense as a percentage of income was 9.17% and 8.47%
and as a percentage of Average Invested Assets were 0.27% and 0.24%
during the three-month periods of 2002 and 2001, respectively. During
the six-months periods the figures were 9.96% and 8.58% as a percentage
of income and 0.84% and 0.71% as a percentage of Average Invested
Assets, respectively.

     Interest expense during the comparable three-month periods
decreased by 98% and during the six-month periods decreased by 94% as
we paid down the outstanding balance of the credit facility during
2002. The outstanding balance was $1,300,000 and $3,650,000 at June 30,
2002 and 2001, respectively.

     Restated net income was $1,810,000 and $1,096,000 for the three
months ended June 30, 2002 and 2001, respectively, and $3,293,000 and
$2,013,000 for the six-month periods, respectively, making earnings per
share during the comparable three-month periods $0.47 and $0.45 (4%
increase), and $0.90 during both six-month periods.

    The dividend declared and paid per weighted share of beneficial
interest during the comparable three-month periods was the same, $0.50,
and $1.00 during the comparable six-month periods. Dividends were paid
in excess of earnings during the comparable periods.

     As of June 30, 2002, our default rate was 4.68% compared to 3.53%
at the end of the 2001 period. Recoursed defaulted loans were 1.67% and
non-recoursed loans were 3.01%, compared to 1.45% and 2.08% during the
comparable 2001 period. During the 2002-quarter, 14 defaulted
properties were sold outright and one was sold to a new borrower and
retained in our portfolio compared to the 2001 quarter during which
three defaulted properties were sold outright and five were sold to new
borrowers and retained. During the six-month periods 17 defaulted
properties were sold outright and one was sold to a new borrower and
retained in 2002 compared to six sold outright and 17 sold to new
borrowers and retained in 2001. The slow down we reported in sales of
defaulted properties during the March 2002 quarter lessened during the
current period but we continue to make sales of defaulted properties a


                              -11-
<PAGE>
priority because non-recoursed defaults are assets that are not
producing income and therefore lower the amount of income we have to
distribute to our shareholders as dividends.

               CAPITAL RESOURCES AND LIQUIDITY FOR
          THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001

     We intend to make a registered rescission offer to all persons who
purchased our Shares between May 1, 2002 and October 31, 2002 to offer
them the right to sell the Shares back to us and receive the purchase
price plus interest and less the dividends paid. Until such time as
this contingent liability has been eliminated through such a rescission
offer, the Shares sold and which we could be required to repurchase
will be classified as outside of permanent equity. At June 30, 2002
that number of shares was approximately 272,000 with a repurchase value
of approximately $5,447,000. We cannot estimate the amount of Shares
that may be redeemed in a rescission offer. In order to satisfy demands
for rescission it could be necessary for us to liquidate a portion of
our investments which could have an adverse effect on future income and
may require us to discontinue Share repurchases under our Share
Repurchase Plan. The delay in filing could also expose to other
securities law liabilities that are presently not possible to quantify.

     We utilize funds made available from the sale of our Shares, funds
made available on our bank line of credit and repayment of principal on
our Residential Mortgages and Contracts for Deed to purchase Mortgage
Investments.
                                                 THREE-MONTH PERIODS
                                                    ENDED JUNE 30,
                                             2002                  2001
                                             --------------------------
Shares issued                                    405,384       327,602
Number of new shareholders                           172           135
Gross offering proceeds                      $ 8,108,000   $ 6,554,000
Net offering proceeds (after deduction
  of selling commissions and fees)           $ 7,115,000   $ 6,085,000
Principal receipts from Residential
  Mortgages and Contracts for Deed           $ 1,162,000   $ 1,008,000
Principal receipts from Interim Mortgages    $ 6,651,000   $ 2,969,000
Net borrowing from credit line               $ 1,300,000   $(1,720,000)

                                                 SIX-MONTH PERIODS
                                                    ENDED JUNE 30,
                                             2002                  2001
                                             --------------------------
Shares issued                                    791,440       694,492
Number of new shareholders                           325           258
Gross offering proceeds                      $15,829,000   $13,892,000
Net offering proceeds (after deduction
  of selling commissions, fees and shares
  repurchased)                               $13,785,000   $12,040,000
Principal receipts from Residential
  Mortgages and Contracts for Deed           $ 1,700,000   $ 1,498,000
Principal receipts from Interim Mortgages    $12,321,000   $ 5,462,000
Net borrowing from credit line               $   490,000   $(3,350,000)

                             -12-
<PAGE>

     On June 4, 2001 the Securities and Exchange Commission issued its
order of effectiveness for the sale of an additional 5,750,000 shares
of beneficial interest over and above the original registration of
2,500,000 shares. Of the new shares offered for sale, 750,000 were set
aside for the Dividend Reinvestment Plan.

     As of June 30, 2002, we had issued an aggregate of 4,121,351
shares of beneficial interest and repurchased into treasury, through
our Share Repurchase Plan and other cancellations, 66,644 shares
resulting in total shares outstanding of 4,054,707. Gross Offering
Proceeds through the 2002 June quarter were $82,175,000 with Net
Offering Proceeds to us of $72,173,000. By comparison at the end of the
2001-quarter we had issued 2,591,928 shares, had in treasury 13,399
shares resulting in total shares outstanding of 2,578,529. Gross
Offering Proceeds of $51,839,000 and Net Offering Proceeds to us of
$45,867,000.

     With Trustee approval and effective July 11, 2002 we renewed our
$10,000,000 credit facility with the same lender for 12 months. The
line-of-credit was collateralized with the assignment of certain
Residential Mortgages.  Interest was calculated at bank's prime rate
plus 0.50%, or 5.25%, and fixed for the term of the loan. We utilized
the credit facility to acquire and warehouse Mortgage Investments as
they become available. The outstanding balance of the line-of-credit
was reduced as new offering proceeds were received. The outstanding
loan balance at June 30, 2002 was $1,300,000 and $3,650,000 at the
2001-quarter end.

PART II - OTHER INFORMATION

None

Item 6. Exhibits

Exhibit 99.1 Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


                               -13-

<PAGE>



SIGNATURES

     In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, there under duly authorized.


                                        UNITED MORTGAGE TRUST
                                        (Registrant)



Date:  February 3, 2003                 /S/Christine A. Griffin
                                         Christine A. Griffin
                                         President




                                  -14-
<PAGE>

                 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



Board of Directors
United Mortgage Trust


We have reviewed the accompanying balance sheets of United Mortgage
Trust as of June 30, 2002 and the related statements of income for the
three months then ended and cash flows for the three months then ended.
These financial statements are the responsibility of the Company's
management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of
interim financial information consists principally of analytical
procedures applied to financial data and making inquiries of persons
responsible for financial and accounting matters.  It is substantially
less in scope than an audit in accordance with generally accepted
auditing standards, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.

As discussed in Note 1 to the financial statements, the accompanying
financial statements have been restated to correct certain errors in
previously reported amounts.

Based on our reviews, we are not aware of any material modifications
that should be made to the accompanying financial statements in order
for them to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted
auditing standards, the balance sheet of United Mortgage Trust as of
December 31, 2001 and the related statements of earnings and cash flows
for the year then ended (not presented separately herein), and in our
report dated February 7, 2002, we expressed an unqualified opinion on
those financial statements.  In our opinion, the information set forth
in the accompanying balance sheet as of December 31, 2001 is fairly
stated, in all material respects, in relation to the balance sheet from
which it has been derived.

                                     Whitley Penn

Dallas, Texas
October 21, 2002

                              -15-
<PAGE>

Exhibit 99.1 - Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Christine A. Griffin, certify as Chief Executive Officer and Chief
Financial Officer that:

1. I have reviewed this quarterly report on Form 10-QSB of United
Mortgage Trust;

2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made not misleading, in light of the
circumstances under which such statements were made, with respect to
the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;

4. I, as United Mortgage Trust's ("UMT") certifying officer, am
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for UMT
and have:

     a. designed such disclosure controls and procedures to ensure that
material information relating to UMT is made known to us during the
period in which this quarterly report is being prepared;

     b. evaluated the effectiveness of UMT's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evalauation Date");

     c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5. I, UMT's certifying officer, have disclosed, based on our most
recent evaluation, to UMT's auditors and our audit committee of our
Board of Trustees (or persons performing the equivalent functions):

     a. that there are no significant deficiencies in the design or
operation of internal controls which could adversely affect UMT's
ability to record, process, summarize and report financial data and
have identified for UMT's auditors any material weakness in internal
controls; and

     b. that there is no fraud, whether or not material, that involves
management or other employees who have a significant role in UMT's
internal controls; and

6. I, UMT's certifying officer, have indicated in this quarterly report
that there were no significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weakness.


February 3, 2003


/s/ Christine A Griffin
-----------------------
Christine A Griffin
Chief Executive Officer
Chief Financial Officer


                              -16-