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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>WASHINGTON, DC 20549</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K<BR>
CURRENT REPORT</FONT></H1>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Report (Date of earliest event reported): April 10, 2009</FONT></P>

<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>NTS MORTGAGE INCOME FUND</B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact name of registrant as specified in its charter)</FONT></P>

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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Delaware</B> </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>0-18550</B> </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>61-1146077</B> </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(State or other</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Commission file</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(IRS Employer</FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">jurisdiction of</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">number)</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Identification No.)</FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">incorporation)</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>10172 Linn Station Road</B><BR>
<B>Louisville, Kentucky 40223</B><BR>
(Address of principal executive offices)</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(502) 426-4800</B><BR>
(Registrant&#146;s telephone number, including area code)</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>N/A</B><BR>
(Former name or former address, if changed since last report)</FONT></P>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:</FONT></P>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR>
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<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>Item 2.01. Completion of
Acquisition or Disposition of Assets. </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 10, 2009, NTS/Lake Forest II Residential Corporation (&#147;NTS/Lake Forest&#148;),
a Kentucky corporation and wholly-owned subsidiary of NTS Mortgage Income Fund (the
&#147;Fund&#148;), closed the previously announced sale of certain undeveloped real estate
consisting of approximately 14.089 acres of land located at the corner of Old Henry Road
and Arnold Palmer Boulevard in Louisville, Kentucky (&#147;Louisville Parcel&#148;) to LF
Land Company, LLC, a Kentucky limited liability company (&#147;LF Land&#148;). LF Land is
an affiliate of Residential Management (&#147;Residential Management&#148;), a Kentucky
corporation, and NTS Development Company (&#147;NTS Development&#148;), a Kentucky
corporation. Residential Management and NTS Development are affiliates of J.D. Nichols,
the chairman of the Fund&#146;s Board of Directors. The purchase price of $1,660,000
(&#147;Louisville Parcel Purchase Price&#148;) was based on a third-party appraisal
obtained by the Fund at the time the sales agreement was initially negotiated in December
2008. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also
on April 10, 2009, Orlando Lake Forest Joint Venture, a Florida joint venture
(&#147;OLFJV&#148;) in which the Fund holds fifty percent (50%) ownership interest, sold
four unimproved lots in the Lake Forest subdivision located in Sanford, Florida (the
&#147;Lots&#148;) for an aggregate purchase price of $1,272,000 (&#147;Lot Purchase
Price&#148;) to OLF Section 15 Land Company, LLC, a Florida limited liability company
(&#147;OLF&#148;) and affiliate of Residential Management and NTS Development. The Lot
Purchase Price was based on a third-party appraisal obtained by the Fund at the time the
sales agreement was initially negotiated in December 2008. The Fund&#146;s portion of the
aggregate net sales proceeds from the sale of the Lots was approximately $636,000. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
LF Land sells the Louisville Parcel (other than to an affiliate of LF Land) prior to the
earlier of the date the Fund completes or otherwise terminates its liquidation proceedings
or December 31, 2011, and the gross sales price received by LF Land in connection with
such sale is in excess of fifteen percent (15%) greater than the Louisville Parcel
Purchase Price (the &#147;Excess Louisville Parcel Proceeds&#148;), LF Land has agreed to
pay to NTS/Lake Forest an amount equal to twenty percent (20%) of the Excess Louisville
Parcel Proceeds. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
OLF sells any or all of the Lots (other than to an affiliate of OLF) prior to the earlier
of the date the Fund completes or otherwise terminates its liquidation proceedings or
December 31, 2011, and the aggregate gross sales price received by OLF in connection with
such sale or sales is in excess of fifteen percent (15%) greater than the Lot Purchase
Price (the &#147;Excess Lot Proceeds&#148;), OLF has agreed to pay to OLFJV an amount
equal to twenty percent (20%) of the Excess Lot Proceeds. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, the proceeds from both sales will be used by the Fund and its
subsidiaries to pay down their outstanding obligations to NTS Development and Residential
Management. These paydowns will reduce the outstanding obligations owed by the Fund to NTS
Development and Residential Management, and their affiliates, to approximately $2.3
million as of April 10, 2009. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies
of the contracts of sale were attached to the Form 8-K filed on December 24, 2008 as
Exhibits 10.5 and 10.6 and are incorporated in their entirety in this Item 2.01 disclosure
by reference. </font></p>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements 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. </FONT></P>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NTS MORTGAGE INCOME FUND</B></FONT></P>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gregory A. Wells</FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Its:</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Financial Officer</FONT></TD></TR>
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<TD>&nbsp;</TD><TD></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date:</FONT> </TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">April 14, 2009</FONT></TD></TR>
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{"company-data": {"conformed-name": "NTS MORTGAGE INCOME FUND", "cik": "0000841942", "assigned-sic": "6798", "irs-number": "611146077", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18550", "film-number": "09749396"}, "business-address": {"street1": "10172 LINN STATION ROAD", "street2": "SUITE 200", "city": "LOUISVILLE", "state": "KY", "zip": "40223", "phone": "502-426-4800"}, "mail-address": {"street1": "10172 LINN STATION ROAD", "street2": "SUITE 200", "city": "LOUISVILLE", "state": "KY", "zip": "40223"}, "former-company": {"former-conformed-name": "NTS HIGH INCOME FUND", "date-changed": "19890212"}}
8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): April 10, 2009
NTS MORTGAGE INCOME FUND
(Exact name of registrant as specified in its charter)
Delaware
0-18550
61-1146077
(State or other
(Commission file
(IRS Employer
jurisdiction of
number)
Identification No.)
incorporation)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive offices)
(502) 426-4800
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
[   ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01. Completion of
Acquisition or Disposition of Assets.
On
April 10, 2009, NTS/Lake Forest II Residential Corporation ("NTS/Lake Forest"),
a Kentucky corporation and wholly-owned subsidiary of NTS Mortgage Income Fund (the
"Fund"), closed the previously announced sale of certain undeveloped real estate
consisting of approximately 14.089 acres of land located at the corner of Old Henry Road
and Arnold Palmer Boulevard in Louisville, Kentucky ("Louisville Parcel") to LF
Land Company, LLC, a Kentucky limited liability company ("LF Land"). LF Land is
an affiliate of Residential Management ("Residential Management"), a Kentucky
corporation, and NTS Development Company ("NTS Development"), a Kentucky
corporation. Residential Management and NTS Development are affiliates of J.D. Nichols,
the chairman of the Fund's Board of Directors. The purchase price of $1,660,000
("Louisville Parcel Purchase Price") was based on a third-party appraisal
obtained by the Fund at the time the sales agreement was initially negotiated in December
2008.
Also
on April 10, 2009, Orlando Lake Forest Joint Venture, a Florida joint venture
("OLFJV") in which the Fund holds fifty percent (50%) ownership interest, sold
four unimproved lots in the Lake Forest subdivision located in Sanford, Florida (the
"Lots") for an aggregate purchase price of $1,272,000 ("Lot Purchase
Price") to OLF Section 15 Land Company, LLC, a Florida limited liability company
("OLF") and affiliate of Residential Management and NTS Development. The Lot
Purchase Price was based on a third-party appraisal obtained by the Fund at the time the
sales agreement was initially negotiated in December 2008. The Fund's portion of the
aggregate net sales proceeds from the sale of the Lots was approximately $636,000.
If
LF Land sells the Louisville Parcel (other than to an affiliate of LF Land) prior to the
earlier of the date the Fund completes or otherwise terminates its liquidation proceedings
or December 31, 2011, and the gross sales price received by LF Land in connection with
such sale is in excess of fifteen percent (15%) greater than the Louisville Parcel
Purchase Price (the "Excess Louisville Parcel Proceeds"), LF Land has agreed to
pay to NTS/Lake Forest an amount equal to twenty percent (20%) of the Excess Louisville
Parcel Proceeds.
If
OLF sells any or all of the Lots (other than to an affiliate of OLF) prior to the earlier
of the date the Fund completes or otherwise terminates its liquidation proceedings or
December 31, 2011, and the aggregate gross sales price received by OLF in connection with
such sale or sales is in excess of fifteen percent (15%) greater than the Lot Purchase
Price (the "Excess Lot Proceeds"), OLF has agreed to pay to OLFJV an amount
equal to twenty percent (20%) of the Excess Lot Proceeds.
As
previously disclosed, the proceeds from both sales will be used by the Fund and its
subsidiaries to pay down their outstanding obligations to NTS Development and Residential
Management. These paydowns will reduce the outstanding obligations owed by the Fund to NTS
Development and Residential Management, and their affiliates, to approximately $2.3
million as of April 10, 2009.
Copies
of the contracts of sale were attached to the Form 8-K filed on December 24, 2008 as
Exhibits 10.5 and 10.6 and are incorporated in their entirety in this Item 2.01 disclosure
by reference.
2
SIGNATURES
Pursuant
to the requirements 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.
NTS MORTGAGE INCOME FUND
By:
Gregory A. Wells
Its:
Chief Financial Officer
Date:
April 14, 2009
3