<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-03-23</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001177318</rptOwnerCik>
            <rptOwnerName>HUNTER GLOBAL ASSOCIATES LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUNTER GLOBAL INVESTORS L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>485 MADISON AVENUE, 22ND FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001213837</rptOwnerCik>
            <rptOwnerName>HUNTER GLOBAL INVESTORS L P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>485 MADISON AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>22ND FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001162113</rptOwnerCik>
            <rptOwnerName>HUNTER GLOBAL INVESTORS FUND I LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>485 MADISON AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>22ND FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001162123</rptOwnerCik>
            <rptOwnerName>HUNTER GLOBAL INVESTORS FUND II LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUNTER GLOBAL ASSOCIATES LLC</rptOwnerStreet1>
            <rptOwnerStreet2>485 MADISON AVENUE, 22ND FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001284873</rptOwnerCik>
            <rptOwnerName>BUCHAN DUKE III</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>485 MADISON AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>22ND FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-03-23</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>461000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>8.65</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1039000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The shares of Common Stock to which this note relate were held directly by Hunter Global Investors Fund I L.P. (&quot;Fund I&quot;),
 Hunter Global Investors Fund II L.P. (&quot;Fund II&quot;), Hunter Global Investors Offshore Fund Ltd. (&quot;Off I&quot;) and Hunter Global
 Investors Offshore Fund II Ltd. (&quot;Off II&quot;).</footnote>
        <footnote id="F2">Hunter Global Associates L.L.C. (&quot;Associates&quot;) is the sole general partner of, and has investment discretion over the
 securities held by, Fund I and Fund II.  Hunter Global Investors, L.P. (&quot;Investors&quot;) is the investment manager of , and has
 investment discretion over the securities held by, Fund I, Fund II, Off I and Off II.  Mr. Buchan is the Senior Managing
 Member of Associates and the sole member of the general partner of Investors.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>HUNTER GLOBAL ASSOCIATES, L.L.C. By:  /s/ Duke Buchan III, Senior Managing Member</signatureName>
        <signatureDate>2006-03-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>HUNTER GLOBAL INVESTORS L.P.,  By:  Hunter Global Capital Management L.L.C., its general partner, By:  /s/ Duke Buchan III, Managing Member</signatureName>
        <signatureDate>2006-03-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>DUKE BUCHAN III /s/ Duke Buchan III</signatureName>
        <signatureDate>2006-03-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>HUNTER GLOBAL INVESTORS FUND I L.P.  By:  Hunter Global Associates L.L.C., its general partner  By:  /s/ Duke Buchan III, Senior Managing Member</signatureName>
        <signatureDate>2006-03-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>HUNTER GLOBAL INVESTORS FUND II L.P.  by:  Hunter Global Associates L.L.C., its general partner  By:  /s/ Duke Buchan III,  Senior Managing Member</signatureName>
        <signatureDate>2006-03-27</signatureDate>
    </ownerSignature>
</ownershipDocument>
