<SUBMISSION>
<ACCESSION-NUMBER>0001181431-05-067852
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20050926
<FILING-DATE>20051220
<DATE-OF-FILING-DATE-CHANGE>20051220
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Wolcott Charles W
<CIK>0001343536
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>001-32026
<FILM-NUMBER>051275632
</FILING-VALUES>
<BUSINESS-ADDRESS>
<PHONE>904-425-4365
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10245 CENTURION PKWY N.
<STREET2>SUITE 305
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>SUNSET FINANCIAL RESOURCES INC
<CIK>0001270436
<ASSIGNED-SIC>6798
<IRS-NUMBER>161685692
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>10245 CENTURION PARKWAY NORTH
<STREET2>SUITE 305
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
<PHONE>904-425-4099
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10245 CENTURION PARKWAY NORTH
<STREET2>SUITE 305
<CITY>JACKSONVILLE
<STATE>FL
<ZIP>32256
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd100798.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-09-26</periodOfReport>

    <noSecuritiesOwned>1</noSecuritiesOwned>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001343536</rptOwnerCik>
            <rptOwnerName>Wolcott Charles W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10245 CENTURION PKWY, N.</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 as of 9/26/05</remarks>

    <ownerSignature>
        <signatureName>/s/ Charles W. Wolcott</signatureName>
        <signatureDate>2005-12-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
