SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  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)  August 30, 1996

                        BALCOR PENSION INVESTORS - VII
         ------------------------------------------------------------
                           Exact Name of Registrant


Illinois                                0-15528
- --------------------------------        --------------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3390487
- --------------------------------        --------------------------------
Address of principal                    I.R.S. Employer
executive offices                       Identification
                                        Number

60015
- --------------------------------
Zip Code


              Registrant's telephone number, including area code:
                                (847) 267-1600
<PAGE>
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
- ----------------------------------------------------------------------

Jonathan's Landing Apartments

In 1987,  the  Partnership  and  an affiliate  (the  "Participants")  funded  a
$23,500,000 first  mortgage  loan  collateralized  by  the  Jonathan's  Landing
Apartments,  Kent,  Washington.  The  Partnership's  share  of  the  loan   was
$12,455,000 for  a participating  percentage of  53%.   In 1990,  the  original
borrower sold the property and  the Participants received $3,000,000 which  was
applied to the  principal amount of  the loan and  $2,035,000 in  participation
income.    The  Partnership's  share  of  such  amounts  were  $1,590,000   and
$1,078,550.  The new  owner executed a new  $20,500,000 first mortgage note  in
favor of  the Participants.    In 1995,  a  limited partnership  (the  "Limited
Partnership") in  which  each  Participant  holds  an  interest  equal  to  its
participating percentage in  the loan  obtained title to  the property  through
foreclosure.

On August 30, 1996, the Limited Partnership contracted to sell the property for
a sale  price of  $22,000,000 to  an unaffiliated  party, Commercial  Ventures,
Inc., a Delaware  corporation.  The  purchaser has deposited  $200,000 into  an
escrow account as  earnest money.   The  remainder of  the sale  price will  be
payable in cash at closing, scheduled for October 12, 1996.  From the  proceeds
of the sale, the Limited  Partnership will pay $275,000 to  a third party as  a
brokerage commission and $165,000 to an affiliate of the third party  providing
property management services for the property as a fee for services rendered in
connection with the sale of the property.  The Limited Partnership will receive
the remaining proceeds  of approximately  $21,560,000, less  closing costs,  of
which the  Partnership's  share will  be  approximately $11,426,800,  less  the
Partnership's share of  closing costs.   Neither  the General  Partner nor  any
affiliate will receive a  brokerage commission in connection  with the sale  of
the property.  The  General Partner will be  reimbursed by the Partnership  for
its actual expenses incurred in connection with the sale.

The closing is subject  to the satisfaction of  numerous terms and  conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore,  it is  possible that  the sale  of the  property may  not
occur.
<PAGE>
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
- ----------------------------------------------------------------------

     (a)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment thereto relating to the 
               sale of Jonathan's Landing Apartments, Kent, Washington.


     No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.


Signature
- -------------

     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.


                         BALCOR PENSION  INVESTORS-VII

                         By:  Balcor Mortgage Advisors-VII, an Illinois 
                              general partnership, its general partner

                         By:  The Balcor Company, a Delaware corporation,
                              a partner

                         By:  /s/ Jerry M. Ogle
                              ------------------------------------
                                  Jerry M. Ogle, Vice President 
                                  and Secretary


Dated:  September 13, 1996
<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  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)  August 30, 1996

                        BALCOR PENSION INVESTORS - VII
         ------------------------------------------------------------
                           Exact Name of Registrant

Illinois                                0-15528
- --------------------------------        --------------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3390487
- --------------------------------        --------------------------------
Address of principal                    I.R.S. Employer
executive offices                       Identification
                                        Number

60015
- --------------------------------
Zip Code

              Registrant's telephone number, including area code:
                                (847) 267-1600
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
- ----------------------------------------------------------------------

Jonathan's Landing Apartments

In 1987,  the  Partnership  and  an affiliate  (the  "Participants")  funded  a
$23,500,000 first  mortgage  loan  collateralized  by  the  Jonathan's  Landing
Apartments,  Kent,  Washington.  The  Partnership's  share  of  the  loan   was
$12,455,000 for  a participating  percentage of  53%.   In 1990,  the  original
borrower sold the property and  the Participants received $3,000,000 which  was
applied to the  principal amount of  the loan and  $2,035,000 in  participation
income.    The  Partnership's  share  of  such  amounts  were  $1,590,000   and
$1,078,550.  The new  owner executed a new  $20,500,000 first mortgage note  in
favor of  the Participants.    In 1995,  a  limited partnership  (the  "Limited
Partnership") in  which  each  Participant  holds  an  interest  equal  to  its
participating percentage in  the loan  obtained title to  the property  through
foreclosure.

On August 30, 1996, the Limited Partnership contracted to sell the property for
a sale  price of  $22,000,000 to  an unaffiliated  party, Commercial  Ventures,
Inc., a Delaware  corporation.  The  purchaser has deposited  $200,000 into  an
escrow account as  earnest money.   The  remainder of  the sale  price will  be
payable in cash at closing, scheduled for October 12, 1996.  From the  proceeds
of the sale, the Limited  Partnership will pay $275,000 to  a third party as  a
brokerage commission and $165,000 to an affiliate of the third party  providing
property management services for the property as a fee for services rendered in
connection with the sale of the property.  The Limited Partnership will receive
the remaining proceeds  of approximately  $21,560,000, less  closing costs,  of
which the  Partnership's  share will  be  approximately $11,426,800,  less  the
Partnership's share of  closing costs.   Neither  the General  Partner nor  any
affiliate will receive a  brokerage commission in connection  with the sale  of
the property.  The  General Partner will be  reimbursed by the Partnership  for
its actual expenses incurred in connection with the sale.

The closing is subject  to the satisfaction of  numerous terms and  conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore,  it is  possible that  the sale  of the  property may  not
occur.
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
- ----------------------------------------------------------------------

     (a)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)  Agreement of Sale and attachment thereto relating to the 
               sale of Jonathan's Landing Apartments, Kent, Washington.

     No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.

Signature
- -------------

     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.

                         BALCOR PENSION  INVESTORS-VII

                         By:  Balcor Mortgage Advisors-VII, an Illinois 
                              general partnership, its general partner

                         By:  The Balcor Company, a Delaware corporation,
                              a partner

                         By:  /s/ Jerry M. Ogle
                              ------------------------------------
                                  Jerry M. Ogle, Vice President 
                                  and Secretary

Dated:  September 13, 1996