<SUBMISSION>
<ACCESSION-NUMBER>0001181431-05-019678
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050324
<FILING-DATE>20050401
<DATE-OF-FILING-DATE-CHANGE>20050401
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>DEEHAN GEORGE O
<CIK>0001246287
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>001-32026
<FILM-NUMBER>05725097
</FILING-VALUES>
<BUSINESS-ADDRESS>
<PHONE>2034258000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>C/O NYFIX INC
<STREET2>333 LUDLOW ST
<CITY>STAMFORD
<STATE>CT
<ZIP>06902
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>SUNSET FINANCIAL RESOURCES INC
<CIK>0001270436
<ASSIGNED-SIC>6798
<IRS-NUMBER>161685692
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>10245 CENTURION PARKWAY
<STREET2>3RD FLOOR
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
<PHONE>9044254099
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10245 CENTURION PARKWAY
<STREET2>3RD FLOOR
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd74269.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-03-24</periodOfReport>

    <noSecuritiesOwned>1</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001270436</issuerCik>
        <issuerName>SUNSET FINANCIAL RESOURCES INC</issuerName>
        <issuerTradingSymbol>SFO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001246287</rptOwnerCik>
            <rptOwnerName>DEEHAN GEORGE O</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10245 CENTURION PARKWAY NORTH</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 305</rptOwnerStreet2>
            <rptOwnerCity>JACKSONVILLE</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>32256</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <remarks>No securities beneficially owned.</remarks>

    <ownerSignature>
        <signatureName>/s/ George O. Deehan</signatureName>
        <signatureDate>2005-04-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24.
<SEQUENCE>2
<FILENAME>rrd63327_71313.htm
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<HTML>
<HEAD>
<TITLE>
rrd63327_71313.html
</TITLE>
</HEAD>
<BODY>
<PRE>
POWER OF ATTORNEY<br>KNOW ALL MEN BY THESE PRESENTS, that the undersigned does hereby <br>constitute and appoint Byron L. Boston and John Bert Watson as the undersigned's true <br>and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, <br>for the undersigned and in the undersigned's name, place and stead, in any and all <br>capacities, to execute and acknowledge Forms 3, 4 and 5 (including amendments thereto) <br>with respect to securities of Sunset Financial Resources, Inc. (the "Company"), and to <br>deliver and file the same with all exhibits thereto, and all other documents in connection <br>therewith, to and with the Securities and Exchange Commission, the national securities <br>exchanges and the Company pursuant to Section 16(a) of the Securities Exchange Act of <br>1934, as amended, and the rules and regulations promulgated thereunder, granting unto <br>said attorney-in-fact and agent full power and authority to do and perform each and every <br>act and thing requisite and necessary to be done, as fully to all intents and purposes as the <br>undersigned might or could do in person, hereby ratifying and confirming all that said <br>attorney-in-fact and agent or his substitute lawfully do or cause to be done by virtue <br>hereof.  The undersigned agrees that the attorney-in-fact herein may rely entirely on <br>information furnished orally or in writing by the undersigned to such attorney-in-fact.<br>The validity of this Power of Attorney shall not be affected in any manner by <br>reason of the execution, at any time, of other powers of attorney by the undersigned in <br>favor of persons other than that named herein; provided that all previous Powers of <br>Attorney relating to the filing of Forms 3, 4 and 5 (including amendments thereto) with <br>respect to securities of the Company are revoked as of the date hereof and superceded by <br>this Power of Attorney.<br>The undersigned agrees and represents to those dealing with the attorney-in-fact <br>herein that this Power of Attorney is for indefinite duration and may be voluntarily <br>revoked only by written notice delivered to such attorney-in-fact.<br>IN WITNESS WHEREOF, I have hereunto set my hand as of this 1st day of <br>April, 2005.<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ George O. Deehan<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;George O. Deehan<p><p>
</PRE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
