UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549

                                   FORM 8-K


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

        Date of report (Date of earliest event reported): June 23, 1999

                       Commission File Number: 0-19822


                       LITCHFIELD FINANCIAL CORPORATION
            (Exact name of registrant as specified in its charter)


  MASSACHUSETTS                                04-3023928
State or other jurisdiction        (I.R.S. Employer Identification No.)
 of incorporation or organization)


   430 MAIN STREET, WILLIAMSTOWN, MA                 01267
(Address of principal executive offices)          (Zip Code)


      Registrant's telephone number, including area code: (413) 458-1000


             (Former name, former address and former fiscal year,
                         if changed since last report)


Item 5: Other Events:

Attached is the press release issued by the company on June 23, 1999

WILLIAMSTOWN,   Massachusetts,   (June  23,   1999)  -   Litchfield   Financial
Corporation  (NASDAQ/LTCH)  announced  today  that  it  has  acquired  Ironwood
Acceptance   Company,   LLC.   Ironwood,   located  in   Scottsdale,   Arizona,
specializes  in the  purchasing,  servicing  and  liquidation  of municipal tax
lien  certificates.  Litchfield  acquired  100% of the  outstanding  membership
interests of Ironwood for  approximately  $2.3 million,  with one third paid in
cash,  and the remaining  two thirds paid in  Litchfield  stock over a two-year
period.

Randy Stratton,  President and CEO of Litchfield  commented,  "This acquisition
is in keeping with our business  strategy of  identifying  and lending money to
smaller  finance  companies  in  niche  businesses  with  strong,   experienced
management.   After  two  solid  years  of  experience   with   Ironwood,   and
performance  that has been  consistent with our  expectations,  we decided that
it  made  good  business  sense  to  expand  the  relationship  with  them in a
mutually  beneficial  way.  This  acquisition  will enable us to  increase  our
presence in the tax lien business,  while  providing  Ironwood with  sufficient
capital for expansion."

Mr.  Stratton  added,  "It has been our strategy to view  transactions  of this
nature  as an  opportunity  to  further  reduce  the  portion  of our  revenues
derived from the gain on sale of loans.  So while this  transaction  would have
been  modestly  accretive  in  1999,  and  more so in  2000,  we'll  take  this
opportunity  to  further  reduce  our  gain  on  sale  as a  percentage  of our
revenues, instead."

Ironwood will become a subsidiary of  Litchfield,  and its nine  employees will
continue to operate out of  Scottsdale,  Arizona.  Peter  Reardon will continue
to serve in his present  position as President of Ironwood.  The  management of
Ironwood  has been  successfully  purchasing  and  managing  tax liens for over
eight  years  and  is  currently  purchasing  tax  lien  certificates,  through
auctions and over the counter sales, in twelve states.

Mr.  Stratton  noted,  "Tax  liens  will  help us  further  diversify  our half
billion dollar  serviced  portfolio.  These  investments  have small  balances,
high   yields   and  are  well   collateralized   and  highly   secure.   These
characteristics  make tax liens  complimentary  to our existing  consumer  land
and  timeshare  loans,  hypothecation  loans and  acquisition  and  development
loans."

Litchfield  is  a  diversified  finance  company  that  provides  financing  to
creditworthy  borrowers  for  assets  not  typically  financed  by  banks.  The
company  provides  such  financing  by making  loans to  businesses  secured by
consumer  receivables  or other assets and by  purchasing  consumer  loans.  To
learn more about Litchfield, visit our website at www.ltchfld.com.


Except for the historical  information  contained or  incorporated by reference
in this press  release,  the matters  discussed  or  incorporated  by reference
herein  are  forward-looking   statements.   Such  forward-looking   statements
involve  known and unknown  risks,  uncertainties  and other  factors  that may
cause the actual  results,  performance  or  achievements  of the  Company,  or
industry  results,  to  be  materially   different  from  any  future  results,
performance  or  achievements  expressed  or  implied  by such  forward-looking
statements.  Such factors  include,  among  others,  the risk factors set forth
under  "Risk  Factors",  as listed in the 1998 Annual  Report on Form 10-K,  as
well as the  following:  general  economic  and business  conditions;  industry
trends;  changes in business  strategy or development  plans;  availability and
quality of  management;  and  availability,  terms and  deployment  of capital.
Special   attention   should  be  paid  to  such   forward-looking   statements
including,  but not  limited  to,  statements  relating  to (i)  the  company's
ability to execute its growth  strategies and to realize its growth  objectives
and (ii) the Company's  ability to obtain  sufficient  resources to finance its
working capital needs and provide for its known obligations.

              Contact: Ronald E. Rabidou, Chief Financial Officer
Telephone: 413-458-1000 x 160       Fax: 413-458-1020       E-Mail
rrabidou@ltchfld.com