Home Selling in Phoenix>Question Details

Austin Olsen, Real Estate Pro in Mesa, AZ

Do most lenders today use a loan status update system to keep both buyers and sellers up to date with their lending status?

Asked by Austin Olsen, Mesa, AZ Wed Aug 20, 2014

Is it required by Arizona law for a lender to send an LSU to the buyers and sellers in a residential home purchase?

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Answers

5
Per the language in the AAR Contract, the Buyer needs to send the Seller a Loan Status Update within 5 days of contract acceptance. The Buyer also needs to send updated LSU's when requested by the Seller throughout the escrow. Most reputable/experienced lenders have a system in place to send weekly loan status updates to the Buyer's Realtor.
0 votes Thank Flag Link Mon Mar 2, 2015
How often is it appropriate for a seller to request LSU? Weekly? Does the buyer's agent expect that the seller is going to want continued updates during escrow?
Flag Thu Jan 28, 2016
Just in case anyone need to fill out a Loan Update Status form, I found a blank form in this link http://goo.gl/PtpmX4. This site PDFfiller also has several related forms that you might find useful.
0 votes Thank Flag Link Fri Feb 6, 2015
This is not required by law. However, in the standard Arizona Association or Realtor's purchase contract, a Loan Status Update should be provided to the seller 48 hours after contract acceptance and any time the seller requests one during the loan process.

Are you considering selling your home?
0 votes Thank Flag Link Thu Jan 1, 2015
It is not law that the lender must send the loan status update to the seller/ buyer, however, if using the standard Arizona Association of Realtors purchase contract, page 2 in the financing section 2e requires the Buyer to provide the Seller with a loan status update within 5 days after contract acceptance and for the Buyer to instruct their lender to provide an updated LSU to Broker(s) and Seller upon request.
0 votes Thank Flag Link Fri Aug 22, 2014
While there is no legal requirement that I know of, the standard AAR contract includes a clause (section 2E) that states that the Buyer shall deliver to Seller the LSU within five (5) days after contract acceptance and instruct lender to provide an updated LSU to Broker(s) and Seller upon request.

So chances are that most contracts require the use of the LSU.
0 votes Thank Flag Link Thu Aug 21, 2014
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