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Bring a large pot of salted water to a boil. Add the pasta and cook according to the package directions; drain.
Meanwhile, heat the olive oil in a large nonstick skillet over medium-high heat. Add the onion and cook, stirring frequently, until soft, about 5 minutes. Stir in the garlic and cook 2 minutes. Add the sausage and cook, breaking up the meat with a wooden spoon, until browned, about 5 minutes. Stir in the bell peppers, mushrooms, seasoned salt and Italian seasoning and cook, stirring frequently, until the vegetables are soft, about 4 minutes. Stir in the tomatoes, 3/4 cup water and the basil and bring to a boil. Reduce the heat to medium low and simmer until the sauce thickens slightly and the flavors are blended, about 15 minutes.
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