Note 1 - Going Concern	6 Months Ended
Jun. 30, 2013
Notes
Note 1 - Going Concern	NOTE 1 – GOING CONCERN The accompanying unaudited consolidated financial statements have been prepared assuming Real Estate Associates Limited VII (the "Partnership” or “Registrant") will continue as a going concern. The Partnership continues to generate recurring operating losses. In addition, the Partnership is in default on notes payable and related accrued interest payable that matured between December 1999 and December 2004. One of the Partnership's two remaining investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of June 30, 2013, the Partnership is obligated for non-recourse notes payable of approximately $1,421,000 to the sellers of the partnership interests, bearing interest at 9.5 percent annually. Total outstanding accrued interest is approximately $3,410,000 at June 30, 2013. These obligations and the related interest are collateralized by the Partnership's investments in the local limited partnerships (the “Local Limited Partnerships”) and are payable only out of cash distributions from the Local Limited Partnerships, as defined in the notes. Unpaid interest was due at maturity of the notes. The remaining note payable has matured and remains unpaid at June 30, 2013. No payments were made on the notes payable during the six months ended June 30, 2013 or 2012. As discussed in “Note 4 – Notes Payable”, the Partnership has agreements with the non-recourse note holder for the two notes payable in which the note holder agreed to forebear taking any action under these notes in order to permit the Partnership to negotiate the sale of its limited partnership interests in these Local Limited Partnerships to the local general partner of the respective Local Limited Partnerships. During 2013, the Partnership sold its interest in one of these Local Limited Partnerships to the local general partner of the Local Limited Partnership in exchange for the cancellation and extinguishment of two of the Partnership’s non-recourse notes payable of an aggregate of approximately $920,000 and associated accrued interest of approximately $2,428,000 (as discussed in “Note 4”). The other sale is expected to close during 2013. As a result of the above, there is substantial doubt about the Partnership's ability to continue as a going concern. The unaudited consolidated financial statements do not include any adjustments to reflect the possible future effects of the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of these uncertainties.

Note 1 - Going Concern

6 Months Ended

Jun. 30, 2013

NOTE 1 – GOING CONCERN

The accompanying unaudited consolidated financial statements have been prepared assuming Real Estate Associates Limited VII (the "Partnership” or “Registrant") will continue as a going concern. The Partnership continues to generate recurring operating losses. In addition, the Partnership is in default on notes payable and related accrued interest payable that matured between December 1999 and December 2004.

One of the Partnership's two remaining investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of June 30, 2013, the Partnership is obligated for non-recourse notes payable of approximately $1,421,000 to the sellers of the partnership interests, bearing interest at 9.5 percent annually. Total outstanding accrued interest is approximately $3,410,000 at June 30, 2013. These obligations and the related interest are collateralized by the Partnership's investments in the local limited partnerships (the “Local Limited Partnerships”) and are payable only out of cash distributions from the Local Limited Partnerships, as defined in the notes. Unpaid interest was due at maturity of the notes. The remaining note payable has matured and remains unpaid at June 30, 2013.

No payments were made on the notes payable during the six months ended June 30, 2013 or 2012. As discussed in “Note 4 – Notes Payable”, the Partnership has agreements with the non-recourse note holder for the two notes payable in which the note holder agreed to forebear taking any action under these notes in order to permit the Partnership to negotiate the sale of its limited partnership interests in these Local Limited Partnerships to the local general partner of the respective Local Limited Partnerships. During 2013, the Partnership sold its interest in one of these Local Limited Partnerships to the local general partner of the Local Limited Partnership in exchange for the cancellation and extinguishment of two of the Partnership’s non-recourse notes payable of an aggregate of approximately $920,000 and associated accrued interest of approximately $2,428,000 (as discussed in “Note 4”). The other sale is expected to close during 2013.

As a result of the above, there is substantial doubt about the Partnership's ability to continue as a going concern. The unaudited consolidated financial statements do not include any adjustments to reflect the possible future effects of the recoverability and classification of assets or amounts and classification of liabilities that may result from the outcome of these uncertainties.

- Definition

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

+ References+ Details