Item 8.01:  Other Events

July 3, 2008 – Vestin Realty Mortgage II (the “Company”) announced on July 2, 2008 that it experienced a significant increase in problem loans during the quarter ended June 30, 2008.  As of that date, the Company has 43 loans outstanding with an aggregate principal amount of approximating $288.0 million, of which, 24 loans with an aggregate principal amount of approximately $201.3 million were not current in making interest payments.  A copy of the press release regarding this announcement is furnished as Exhibit 99.1 to this report.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.
 
Description
 


 
 
 


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 hereunto duly authorized.


   
VESTIN REALTY MORTGAGE II, INC.
     
 
By
Vestin Mortgage, Inc., its sole manager
     
     
Date:  July 3, 2008
By
/s/ Rocio Revollo
   
Rocio Revollo
   
Chief Financial Officer