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): April 2, 2001



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

         California                       000-19992              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 5. Other Events

After 25 years of active  participation  in the  mortgage  business,  D. Russell
Burwell,  age 69, the founder and one of the General Partners of the Partnership
has announced his decision to retire effective September 30, 2001. The remaining
General  Partners are Mr. Michael  Burwell and Gymno  Corporation,  a California
Corporation.  The  remaining  General  Partners  have  elected to  continue  the
business of the  Partnership  as described  in Article 9 Section  9.01(d) of the
Partnership's  Limited Partnership  Agreement.  Mr. Michael Burwell who has been
employed  by  Redwood  Mortgage  Corp.  since 1970 will  continue  to serve as a
General  Partner  of  Redwood  Mortgage  Investors  VII,  an  affiliate  of  the
Partnership,  a position he has held since its inception.  The remaining General
Partners and various  senior-level  employees  of Redwood  Mortgage  Corp.  will
assume Mr.  Burwell's  responsibilities.  Mr. Burwell is working actively and in
close  association  with management to ensure a smooth  transition.  Mr. Burwell
will also make himself  available to the General  Partners as needed for special
projects.

Mr. D. Russell  Burwell has notified the limited  partners of the Partnership of
his  retirement  pursuant to Article 8 Section  8.02 of the Limited  Partnership
Agreement.  The retirement of D. Russell Burwell does not constitute a change in
ownership control of the Partnership.


                                    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:  April 11, 2001

                                               REDWOOD MORTGAGE INVESTORS VII,
                                               a California limited partnership



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