SECURITIES AND EXCHANGE COMMISSION
    WASHINGTON, D.C. 20549
                       
                FORM 10-K
                       
Annual Report Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934 
for the fiscal year ended December 31, 1997
                       
Commission File Number: 333-22559
                       
Salomon Brothers Mortgage Securities VII, Inc.
(Exact Name of registrant as specified in its charter)
                       
Delaware                      13-3439681
(State or Other Juris-            (I.R.S. Employer
diction of Incorporation)        Identification No.)
  
Seven World Trade Center, New York, New York 10048
(Address of Principal Executive Office)
 
212-783-5659 
(Registrant's telephone number, including area code) 

  
Securities registered pursuant to Section 12(b) of the Act:     None
  
Securities registered pursuant to Section 12(g) of the Act:     None
  
Indicate by check mark whether the registrant (1) 
has filed all reports required to be filed  by Section 13 or 15(d) of 
the Securities Exchange Act of 1934 during the preceding 12 months 
(or for such shorter period that the registrant was required to file 
such reports),and (2) has been subject to such filing requirements for 
the past 90 days. 
  
  Yes  X   No 
  
Indicate by check mark if disclosure of delinquent filers pursuant to 
Item 405 of Regulation S-K is not contained herein, and will not be 
contained, to the best of registrant's knowledge, in definitive proxy or 
information statements incorporated by reference in part III of this 
Form 10-K or any amendment to this Form 10-K.  

Not applicable.
  
Aggregate market value of voting stock held by non-affiliates of the 
Registrant as of December 31, 1997.  

Not applicable.
  
Number of shares of common stock outstanding  a
s of December 31, 1997.  

Not applicable.
    <PAGE>
              Table of Contents
                        
  
  PART I
  
  Item 1. Business..................................................3
  
  Item 2. Properties................................................3
  
  Item 3. Legal Proceedings.........................................3
  
  Item 4. Submission Of Matters To A Vote Of Security Holders.......3
  
  PART II
  
  Item 5. Market For Registrant's Common Equity And 
  Related Shareholder Matters.......................................3
  
  Item 6. Selected Financial Data...................................3
  
  Item 7. Management's Discussion And Analysis Of Financial Condition 
            And Results Of Operations...............................4
  
  Item 8. Financial Statements And Supplementary Data...............4
  
  Item 9. Changes In And Disagreements With Accountants On 
            Accounting And Financial Disclosure.....................4
  
  PART III
  
  Item 10. Directors And Executive Officers Of The Registrant.......4
  
  Item 11. Executive Compensation...................................4
  
  Item 12. Security Ownership Of Certain Beneficial Owners And 
            Management..............................................4
  
  Item 13. Certain Relationships And Related Transactions...........4
  
  PART IV
  
  Item 14. Exhibits, Financial Statement Schedules And Reports On 
            Form 8-K................................................4
  
  Signatures........................................................4
  
  Exhibit Index.....................................................4
    <PAGE>
PART I
  
ITEM 1.         BUSINESS
  
This Annual Report on Form 10-K relates to the Trust Fund formed, 
and the Mortgage Pass-Through Certificates, Series 1997-HUD 1 issued,
pursuant to a Pooling and Servicing Agreement, dated as of April 1, 1997
(the "Pooling and Servicing Agreement"), by and among Salomon Brothers 
Mortgage Securities VII, Inc. as sponsor  (the "Company") Ocwen Federal
Bank FSB, as master servicer, LaSalle National Bank, as trustee and 
REMIC administrator, and ABN AMRO Bank, N.V., as fiscal agent. The 
Certificates have been registered pursuant to the Act under a 
Registration Statement on Form S-3 (No. 333-27083) (the "Registration 
Statement").
  
Capitalized terms used herein and not defined have the same 
meanings ascribed to such terms in the Pooling and Servicing Agreement.
  
This Annual Report is being filed by the Trustee, in its capacity as 
such under the Pooling and Servicing Agreement, on behalf of Registrant.  
The information contained herein has been supplied to the Trustee by 
one or more of the Borrowers or other third parties without independent 
review or investigation by the Trustee.  Pursuant to the Pooling and 
Servicing Agreement, the Trustee is not responsible for the accuracy 
or completeness of such information.
  
ITEM 2.         PROPERTIES
  
See Exhibits 99.1 and 99.2 hereto for Servicer s Annual Statement of
Compliance and Servicer s Independent Accountant s Report on Servicer's
servicing activities.
  
ITEM 3.         LEGAL PROCEEDINGS
  
Except for claims arising in the ordinary course of business and 
which are covered by liability insurance, there are no material pending 
legal proceedings involving the Trust Fund, the Mortgages comprising the 
Trust Fund or the Trustee, the Special Servicer or the Servicer with 
respect to or affecting their respective duties under the Pooling and 
Servicing Agreement.
  
ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY  HOLDERS
  
No matters were submitted to a vote of Certificateholders during 
the fiscal year covered by this report.
  
PART II
  
ITEM 5.         MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED       
                STOCKHOLDER MATTERS
  
There was one registered holder of the Certificate representing an 
equity interest in the Trust as of December 31, 1997.  To the 
Registrant's knowledge, as of that date, there was no principal market 
in which the Certificates representing an equity interest in the Trust 
were traded.
  
ITEM 6.         SELECTED FINANCIAL DATA
  
Not applicable.
  
ITEM 7.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF A FINANCIAL 
             CONDITION AND RESULTS OF OPERATIONS.
  
Not applicable.
  
ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY  DATA
  
Not applicable.
  


ITEM 9.        CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON        
               ACCOUNTING AND FINANCIAL DISCLOSURE
  
None.
  
PART III
  
The information required by Items 10, 11, 12 and 13 is not 
applicable as the trust fund does not have directors or officers and 
Certificateholders have no right to vote (except with respect to 
required consents to certain amendments to the Pooling and Servicing 
Agreement and upon certain events of default) or control the Trust 
Fund.
  
PART IV
 
ITEM 14.        EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS 
              ON FORM 8-K
  
(a)     
1.     Servicer's Annual Statement of Compliance for the period ended
       12/31/97.
2.     Servicer's Independent Accountant's Report on Servicer's servicing
       activities.

(b)    All current Reports on Form 8-K for the Trust have been filed as of 
      12/31/97. 
  
Pursuant to the requirements of Section 13 or 15(d) of the Securities 
Exchange Act of 1934, the Registrant has duly caused this report to be 
signed on its by the undersigned thereunto duly authorized.
  
  
                              LASALLE NATIONAL BANK, IN
                              ITS CAPACITY AS TRUSTEE UNDER 
                              THE POOLING AND SERVICING
                              AGREEMENT ON BEHALF OF Salomon
                         Brothers Mortgage Securities 
                         VII, Inc., REGISTRANT      
                 
  
                              By: /s/ Russell Goldenberg
                              Name:  Russell Goldenberg
                              Title: Senior Vice President
                              Dated: April 14, 1998
  
  






EXHIBIT INDEX
  
  
Exhibit No.     Description
  
99.1   Servicer's Annual Statement of Compliance
99.2   Servicer's Independent Accountants' Report on Servicer's servicing
       activities

  
  
  
  









Exhibit 99.1


March 30, 1998



         
0 C W E N

LaSalle National Bank 
135 South LaSalle Street, Suite 1740 
Chicago, Illinois 60674-4107 
Attn: Asset-Backed Securities Trust Services Group Salomon Brothers 
Mortgage Securities VII, Inc.

RE: 1997 Annual Compliance Information

As required by the terms of the Seller/Servicer Agreement, Trust Agreement
and/ or Pooling and Servicing Agreement, we have provided the following 
compliance information:

1.    Uniform Single Attestation Program (USAP) for Mortgage Bankers 
prepared by an Independent Auditor,

2. Officer's Certificate As To Compliance, signed by a Servicing 
(ifficer who is authorized to sign such documents.

Should you have any questions regarding this matter or services provided 
by Ocwen Federal Bank, please do not hesitate to contact me at 
(561) 681-8279 or fax (561) 68 1 -8186.

Sincerely,

By: /s/ Joseph Laigaie
Joseph Laigaie
Manager, Investor Reporting

Enclosures

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0 C W E N

March 30,1998

LaSalle National Bank
135 South LaSalle Street, Suite 1740
Chicago, Illinois 60674-4107

Ann: Asset-Backed Securities Services Group,
Salomon Brothers Mortgage Securities VII, Inc.
Mortgage Pass-Through Certificates, Series 1997-HUD I
I

RE: Officer Certification

I Jay B. Goldman as officer of Ocwen Federal Bank FSB (the "Banlo confirm 
that activities required to be perfbrmed by the Bank under the servicig 
agreement (the "Agreement) have been completed in accordance with the 
intent of the respective Agreement, to the best of my knowledge.

Sincerely,

/s/ Jay B. Goldman
Jay B. Goldman
Vice President Loan Servicing

<PAGE>
                         
                         Exhibit 99.2
                         
                         One East Broward Boulevard        
                         Telephone 954 463 6280
                         Suite 1700
                         Fort Lauderdale, FL 33301
                         
Price Waterhouse LLP                           
                                        
                            LOAN SERVICING REPORT OF
                   INDEPENDENT CERT11FIED PUBLIC ACCOUNTANTS

March 25, 1998

To the Board of Directors of
Ocwen Federal Bank FSB

We have examined management's assertions about Ocwen Federal Bank 
FSB's ("the Bank") compliance with the minimum servicing standards in the 
Mortgage Bankers Association of America's Unlyorm Single Attestation 
Program for Moqga Bankers as of and for the year ended December 31, 1997, 
included in the accompanying management assertion. Management is 
responsible for the Bank~s compliance with those minimum servicing 
standards. Our responsibility is to express an opinion on management's
assertion about the entity's compliance based on our examination.

Our examination was made in accordance with standards established by 
the American Institute of Certified Public Accountants and, 
accordingly, included examining, on a test ba.sis, evidence about the 
Bank's compliance with the minimum servicing standards and 
performing such other procedures as we considered necessary in the 
circumstances. We believe that our examination provides a reasonable 
basis for our opinion. Our examination does not provide a legal 
determination on the Bank's compliance with the minimum servicing 
standards.

In our opinion, management's assertion that the Bank has complied with 
the aforementioned minimum servicing standards as of and for the year 
ended December 3 1, 1997 is fairly stated, in all. material respects.

/s/ Price Waterhouse LLP

  




























0 C W E N

MANAGENIENT'S ASSERTION ON COMPLIANCE WITH USAP

March 25, 1998

As of and for the year ended December 3 1, 1997, Ocwen Federal 
Bank FSB (the "Bank") has complied in all material respects with 
the minimum servicing standards set forth in the Mortgage Bankers 
Association of America's Uniform Single Attestation Program for 
Mortgage Bankers. As of and for this same period, the Bank had 
in effect a fidelity bond and an errors and omissions policy in the 
combined amount of $10,000,000.00


/s/ Jay Goldman
Jay Goldman, Vice President


Date: March 25, 1998