Remember to provide the Loan Status Update
Your Escrow Officer, at Title Security Agency, is here to assist with the prompt closing of every transaction. When opening escrow one of the important documents to provide to your Escrow Officer is the Loan Status Update aka “LSU”. The LSU allows for delivery to the Seller within five days after contract acceptance. Since escrow is oftentimes opened prior to those five days the transmittal to escrow of the LSU is overlooked. If at any time during the transaction the lender changes, notify your Escrow Officer right away. There are instances where the buyer may be denied a loan from the lender they have chosen. Submittal of the LSU within the prescribed time period, after the acceptance of the Contract, is crucial to the transaction. If the LSU is not submitted to escrow, and cancellation due to denial of the loan is submitted inside of 3 days of the original closing date, buyer may not automatically be entitled to a refund of their earnest monies.
Lines 59-61 of the Arizona Residential Resale Real Estate Purchase Contract outlines the return of the earnest monies.