<SUBMISSION>
<ACCESSION-NUMBER>0001181431-05-045290
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20050808
<FILING-DATE>20050808
<DATE-OF-FILING-DATE-CHANGE>20050808
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>DEEHAN GEORGE O
<CIK>0001246287
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>001-32026
<FILM-NUMBER>051006536
</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>4
<SEQUENCE>1
<FILENAME>rrd88666.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-08-08</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <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>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President &amp; COO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-08-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <ownerSignature>
        <signatureName>/s/ John Bert Watson, Attorney-in-Fact</signatureName>
        <signatureDate>2005-08-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
