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): February 5, 2001



                         REDWOOD MORTGAGE INVESTORS VII
             (Exact Name of Registrant as Specified in its Charter)

         California                       33-30427              94-3094928
(State or Other Jurisdiction of         (Commission           (I.R.S. Employer
 Incorporation or Organization)         File Number)      Identification Number)



650 El Camino Real, Suite G, Redwood City, California                    94063
         (Address of Principal Executive Offices)                     (Zip Code)

Registrants telephone number, including area code:   (650) 365-5341





Item 4. Change in Registrants' Certifying Accountant

     A. Bruce Cropper, a partner in the accounting firm of Caporicci,  Cropper &
Larson, LLP has been providing audit and accounting services to Redwood Mortgage
Investors VII since its inception in 1993. Mr. Cropper also has been  performing
audit and  accounting  services to the general  partners of the  Registrant  and
their  affiliates for over 18 years.  In 2001, Mr. Cropper joined the accounting
firm of Armanino McKenna LLP, located in Walnut Creek,  California.  As a result
the  Partnership  has retained the firm of Armanino  McKenna LLP, to provide its
audit and financial services under the auspices of Mr. Cropper.  Thus,  although
there  has been a change  in  accounting  firms,  there has not been a change in
accountants.


                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  registration  statement  to be signed on its
behalf by the undersigned, thereto duly authorized.

Date:  February 13, 2001

                                               REDWOOD MORTGAGE INVESTORS VII,
                                               a California limited partnership



                                               By:      /s/ Michael R. Burwell
                                                        Michael R. Burwell
                                                        General Partner