UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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)  July 7, 1997
                                                 ------------
                        Litchfield Financial Corporation
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)
Massachusetts                     0-19822               04-3023928
- --------------------------------------------------------------------------------
(State or other jurisdiction      (Commission          (IRS Employer
     of incorporation)            File Number)         Identification No.)
789 Main Road, Stamford, VT                            05352
- --------------------------------------------------------------------------------
     (Address of principal executive offices)          (Zip Code)
Registrant's telephone number, including area code  (802)694-1200 
                                                    -------------
- --------------------------------------------------------------------------------
         (Former name or former address, if changed since last report)


Item 5. Other Events


                                  NEWS RELEASE


                                                            NASDAQ Symbol - LTCH

FOR IMMEDIATE RELEASE
Contact:    Heather A. Sica, Executive Vice President
Telephone:  802-694-1200 x123  FAX:  802-694-1552



        LITCHFIELD FINANCIAL ANNOUNCES SECOND QUARTER ORIGINATIONS UP 44%

     Stamford,  Vermont  (July  7,  1997)  -  Litchfield  Financial  Corporation
(NASDAQ:  LTCH)  announced  today that second  quarter  originations  were $47.1
million, up 44% from $32.6 million a year earlier. Litchfield's originations for
the first six  months of 1997 were  $83.3  million,  a 41%  increase  from $59.0
million during the same period in 1996.

     Randy  Stratton,  President and CEO of Litchfield  said, "We are pleased to
report strong  originations  growth for the first half of 1997. This origination
growth  reflects  Litchfield's  ability to source land and  timeshare  loans and
provide  outstanding  service  and  competitive  terms  to its  customers."  Mr.
Stratton added,  "We are particularly  proud to achieve this origination  growth
while maintaining our overhead budgets and the credit quality of our portfolio."

     Litchfield  Financial  Corporation  is a specialty  finance  company  which
provides financing for the purchase of rural and vacation properties,  financing
of vacation ownership interests (popularly known as timeshare interests),  loans
to rural land dealers and resort developers  secured by consumer  receivables or
real estate, and other secured loans.

     Litchfield is listed on the NASDAQ Stock Market under the symbol LTCH.