UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
                           Form 10-K

[ X ]     ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF
       THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1997

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
     THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

               Commission File number 333-30759-08

 AMRESCO Residential Securities Corporation Mortgage Loan Trust 1997-3

          New York                           Application Pending
 (State of other jurisdiction                  (I.R.S. Employer
              of                             Identification No.)
incorporation or organization)     
                                   
   c/o The Bank of New York        
   101 Barklay Street, 12E                     10286
         New York, NY                        (Zip Code)
    (Address of principal
      executive offices)

Registrant's telephone number, including area code:  (909) 605-7600

Securities registered pursuant to Section 12(b) of the Act:

             None                               None
    (Title of each class)            (Name of each exchange on
                                         which registered)
                              None
                        (Title of class)

      Indicate by check mark whether the registrant (1) has filed
all  reports required to be filed by Section 13 or 15(d)  of  the
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  by check mark if disclosure of delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.  Not applicable.

     State the aggregate market value of the voting stock held by
non-affiliates of registrant.  The aggregate market  value  shall
be  computed  by reference to the price at which  the  stock  was
sold,  or the average bid and asked prices of such stock,  as  of
specified  date within 60 days prior to the date of filing.   Not
applicable.

Number  of shares of common stock outstanding as of December  31,
1997.  Not applicable.

      Documents Incorporated by Reference.  Not applicable.
                             PART I
ITEM 1 - BUSINESS

     Not Applicable.

ITEM 2 - PROPERTIES

     Not Applicable.

ITEM 3 - LEGAL PROCEEDINGS

     AMRESCO Residential Securities Corporation (the "Depositor")
is  not aware of any material pending legal proceedings involving
either  the  AMRESCO Residential Securities Corporation  Mortgage
Loan  Trust  1997-3  (the "Trust") established  pursuant  to  the
Pooling  and Servicing Agreement dated as of September  1,  1997,
among the Depositor, AMRESCO Residential Mortgage Corporation  in
its  capacity as seller, Advanta Mortgage Corp. USA,  Long  Beach
Mortgage  Company  and  Option One Mortgage  Corporation  as  the
servicers  (the  "Servicers"), and The Bank of New  York  in  its
capacity as trustee.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      No  matter  has been submitted to a vote of the holders  of
beneficial  interests in the Trust through  the  solicitation  of
proxies or otherwise.

                            PART II

ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED
STOCKHOLDER MATTERS

      To  the  best  knowledge  of the  Depositor,  there  is  no
established public trading market for any beneficial interests in
the Trust.

     All of the Class A-1, A-1, A-3, A-4, A-5, A-6, A-7, A-8, A-9
and  A-10  Certificates  issued by the  Trust  are  held  by  the
Depository Trust Company ("DTC") which in turn maintains  records
of  holders of beneficial interests in such Certificates.   Based
on  information obtained from DTC, as of January 29, 1998,  there
were  3  holders of the Class A-1 Certificates, 9 holders of  the
Class A-2 Certificates, 14 holders of the Class A-3 Certificates,
1 holders of the Class A-4 Certificates, 1 holders of the Class A-
5  Certificates,  3  holders  of the Class  A-6  Certificates,  2
holders of the Class A-7 Certificates, 2 holders of the Class A-8
Certificates,  2  holders of the Class A-9  Certificates,  and  9
holders of the Class A-10 Certificates.

ITEM 6 - SELECTED FINANCIAL DATA

     Not applicable.

ITEM  7  -  MANAGEMENT'S  DISCUSSION AND  ANALYSIS  OF  FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

     Not applicable.

ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

      In  addition  to  the information included  in  the  Annual
Complication of Monthly Trustee's Statements attached as  Exhibit
99.3  hereto,  the  gross  servicing  compensation  paid  to  the
Servicers for the year ended December 31, 1997 was $1,377,249.

ITEM  9  -  CHANGES  IN  AND DISAGREEMENTS  WITH  ACCOUNTANTS  ON
ACCOUNTING AND FINANCIAL DISCLOSURE

      There  were  no changes of accountants or disagreements  on
accounting  or financial disclosures between the Issuer  and  its
accountants.

                            PART III

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     Not applicable.

ITEM 11 - EXECUTIVE COMPENSATION

     Not applicable.

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

      The following table sets forth (i) the name and address  of
each  entity  owning  more than 5% of the  outstanding  principal
amount  of each Class of Class A Certificates of the Trust;  (ii)
the  principal amount of the Class of Certificates owned by  each
and  (iii) the percent that the principal amount of the Class  of
Certificates  owned by such entity represents of the  outstanding
principal  amount of such Class of Certificates.  The information
set forth in the table for the Class A Certificates is based upon
information  obtained  from  DTC  and  represents  ownership   of
beneficial  interest  in  the  Certificates  held  by  DTC.   The
Depositor is not aware of any Schedules 13D or 13G filed with the
Securities   and   Exchange  Commission   in   respect   of   the
Certificates.

                                                 Amount Owned
           Name and Address                     All Dollar Amounts
                                        Class    Are in Thousands
                                                Principal  Percent
                                                            
Brown Brothers Harriman & Co.           A-1      4,000,000   13%
63 Wall Street, 8th Floor                          
New York, NY 10005
                                                            
Republic National Bank of New York      A-1     21,500,000   68%
Investment Account                                 
One Hanson Place, Lower Level
Brooklyn, NY 11243
                                                            
SSB - Custodian                         A-1      6,000,000   19%
Global Corp Action Dept JAB5W                      
P.P. Box 1631
Boston, MA 02105-1631
                                                            
Bankers Trust Company                   A-2     15,230,000   42%
C/O BT Services Tennessee Inc.                     
648 Grassmere Park Drive
Nashville, TN 37211
                                                            
NationsBank of Texas, N.A.              A-2      6,420,000   18%
Trust Operations, 16th Floor                       
1401 Elm Street
Dallas, TX 75202
                                                            
Prudential Securities Incorporated      A-2      3,430,000   10%
Prudential Securities Proxy Dept                   
111 Eight Avenue
New York, NY 10011
                                                            
Republic National Bank of New York      A-2      7,300,000   20%
Investment Account                                 
One Hanson Place, Lower Level
Brooklyn, NY 11243
                                                            
Republic National Bank of New York      A-2      1,700,000    5%
One Hanson Place, Lower Level                      
Brooklyn, NY 11243
                                                            
Bankers Trust Company                   A-3      8,230,000   20%
C/O BT Services Tennessee Inc.                     
648 Grassmere Park Drive
Nashville, TN 37211
                                                            
Boston Safe Deposit and Trust Company   A-3      5,395,000   13%
C/O Mellon Bank N.A.                               
Three Mellon Bank Center, Room 153-
3015
Pittsburgh, PA 15259
                                                            
Chase Manhattan Bank                    A-3      6,225,000   15%
4 New York Plaza                                   
13th Floor
New York, NY 10004
                                                            
Citibank, N. A.                         A-3     10,220,000   25%
P.O. Box 30576                                     
Tampa, FL 33630-3576
                                                            
SSB -Custodian                          A-3      6,870,000   16%
Global Corp Action Dept JAB5W                      
Boston, MA 02105-1631
                                                            
PNC Bank, N. A./ Pittsburgh             A-4     29,100,000  100%
One PNC Plaza, 9th Floor                           
Pittsburgh, PA 15222-7707
                                                            
Morgan Stanley & Co. Incorporated       A-5     14,600,000  100%
One Pierrepont Plaza, 7th Floor                    
Brooklyn, NY 11201
                                                            
Comerica Bank                           A-6      3,550,000   25%
Cap. Chg./Proxy 7CBB/MC 3530                       
Detroit, MI 48275-3530
                                                            
Northern Trust Company                  A-6     10,100,000   71%
801 S. Canal C-IN                                  
Chicago, IL 60607
                                                            
Morgan Stanley & Co. Incorporated       A-7     11,300,000   74%
One Pierrepont Plaza, 7th Floor                    
Brooklyn, NY 11201
                                                            
Prudential Securities Incorporated      A-7      4,000,000   26%
Prudential Securities Proxy Dept                   
111 Eight Avenue
New York, NY 10011
                                                            
Morgan Stanley & Co. Incorporated       A-8     14,790,000   75%
One Pierrepont Plaza, 7th Floor                    
Brooklyn, NY 11201
                                                            
Prudential Securities Incorporated      A-8      5,000,000   25%
Prudential Securities Proxy Dept                   
111 Eight Avenue
New York, NY 10011
                                                            
Morgan Stanley & Co. Incorporated       A-9     16,980,000   76%
One Pierrepont Plaza, 7th Floor                    
Brooklyn, NY 11201
                                                            
Prudential Securities Incorporated      A-9      5,500,000   24%
Prudential Securities Proxy Dept                   
111 Eight Avenue
New York, NY 10011
                                                            
Bankers Trust Company                   A-10   126,871,000   23%
C/O BT Services Tennessee Inc.                    
648 Grassmere Park Drive
Nashville, TN 37211
                                                            
Chase Manhattan Bank                    A-10    70,000,000   13%
4 New York Plaza                                   
13th Floor
New York, NY 10004
                                                            
Citibank, N. A.                         A-10    45,000,000   8%
P.O. Box 30576                                     
Tampa, FL 33630-3576
                                                            
DAIWA Securities America Inc.           A-10    81,629,000   15%
Financial Square                                   
32 Old Slip, 14th Floor
New York, NY 10005
                                                            
Deutsche Morgan Grenfell Inc.           A-10    25,000,000    5%
C/O ADP Proxy Services                             
                                                            
Investors Bank & Trust/M.F. Custody     A-10    32,040,000    6%
200 Clarendon Street                               
15th Floor,  Hancock Tower
Boston, MA 02116
                                                            
SSB - Custodian                         A-10   146,500,000   25%
Global Corp Action Dept JAB5W                     
P.P. Box 1631
Boston, MA 02105-1631

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     None

                            PART IV

ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS  ON
FORM 8-K

      (a)   The  following documents are filed as  part  of  this
report:

     1.   Financial Statements:

          Not applicable.

     2.   Financial Statement Schedules:

          Not applicable.

     3.   Exhibits:


           Exhibit No.                      Description
            99.1 (a)               Statement of Compliance of the
                                   Servicer - Advanta
            99.1 (b)               Statement of Compliance of the
                                   Servicer - Option One
            99.1 (c)               Statement of Compliance of the
                                   Servicer - AMREIQUEST (Long Beach)
            99.2 (a)               Annual Report of Independent
                                   Accountants with respect to
                                   the Servicer's overall
                                   servicing operations - Arthur Andersen LLP
            99.2 (b)               Annual Report of Independent
                                   Accountants with respect to
                                   the Servicers' overall servicing
                                   operations - KPMG Peat Marwick LLP
            99.2 (c)               Annual Report of Independent
                                   Accountants with respect to
                                   the Servicers' overall servicing
                                   operations -  Deloitte & Touche LLP

(b)  Reports on Form 8-K.

     Reports on Form 8-K have been filed by the Issuer during the
period covered by this report.

                                   Items Reported/Financial
        Date of Reports on             Statements Filed
             Form 8-K
       September 17, 1997   Acquisition or Disposition of Assets.
                            Underwriting and Pooling and Servicing
                            Agreements.
       September 17, 1997   Acquisition or Disposition of Assets.
                            Subsequent Transfer Agreements.
       October 24, 1997     Acquisition or Disposition of Assets.
                            Transfer Agreement
       October 27, 1997     Trustee's Monthly Report for the
                            September Monthly Period.
       October 27, 1997     Amended Trustee's Monthly Report for
                            the September Monthly Period.
       November 25, 1997    Trustee's Monthly Report for the
                            October Monthly Period.
       December 26, 1997    Trustee's Monthly Report for the
                            November Monthly Period.
       January 26, 1998     Trustee's Monthly Report for the
                            December Monthly Period.

                           SIGNATURES

      Pursuant to the requirements of Section 13 and 15(d) 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.

                    AMRESCO RESIDENTIAL SECURITIES CORPORATION
                                                  on behalf of AMRESCO
                    Residential Securities Corporation Mortgage
                    Loan Trust 1997-3


                    By:  /s/ Ron B. Kirkland
                    Name:  Ron B. Kirkland
                    Title: Vice President and Chief Accounting Officer


Date:  March 23, 1998

                       INDEX TO EXHIBITS
                           Item 14(C)


             Exhibit No.                   Description
               99.1 (a)          Statement of Compliance of the
                                 Servicer - Advanta
               99.1 (b)          Statement of Compliance of the
                                 Servicer - Option One
               99.1 (c)          Statement of Compliance of the
                                 Servicer - AMREIQUEST (Long Beach)
               99.2 (a)          Annual Report of Independent
                                 Accountants with respect to
                                 the Servicer's overall servicing
                                 operations - Arthur Andersen LLP
               99.2 (b)          Annual Report of Independent
                                 Accountants with respect to
                                 the Servicers' overall servicing
                                 operations - KPMG Peat Marwick LLP
               99.2 (c)          Annual Report of Independent
                                 Accountants with respect to
                                 the Servicers' overall servicing
                                 operations - Deloitte & Touche LLP