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Old 10-11-2007, 09:13 AM
 
Location: the AZ desert
5,035 posts, read 9,219,177 times
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What are the facts regarding a Loan Status Report (LSR) in Arizona?

I am working with a local real estate agent who told me it is mandatory in AZ to have a completed LSR in order to make an offer on a house. She also told me that a LSR is only good for a couple of month's time, after which a new one has to be obtained. Is this information correct?

The last time I purchased a house which was mortgaged was 2000, in a different state. At that time the realtor I used told me a conditional loan approval was something agents pushed so they knew they were not wasting their time with a client, nothing more. Has this changed or is this a state to state thing?
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Old 10-11-2007, 09:34 AM
SMG
 
Location: Gilbert
490 posts, read 1,109,789 times
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LSR ismandatory in Arizona...no flexiblity on that one. I do belive its state to state, but it is required in Arizona in order to offer on a home.
Good luck!
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Old 10-11-2007, 11:41 AM
 
3,632 posts, read 16,160,659 times
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As an ex RE agent, I do not believe that it's MANDATORY (by law) to submit an LSR with an offer, but I do know that you pretty much have to or the seller won't look much at your offer. Oftentimes, you can submit it a day or two later if you can't get it from your lender that quickly.

I stopped doing real estate around the time that the forms were changed, so I could be wrong.
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Old 10-11-2007, 11:45 AM
 
Location: Somewhere over the rainbow!
430 posts, read 1,263,619 times
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As a seller, in this market, I would not even look at an offer from someone without a LSR.
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Old 10-11-2007, 12:26 PM
SMG
 
Location: Gilbert
490 posts, read 1,109,789 times
Reputation: 666
Quote:
Originally Posted by sablebaby View Post
As an ex RE agent, I do not believe that it's MANDATORY (by law) to submit an LSR with an offer, but I do know that you pretty much have to or the seller won't look much at your offer. Oftentimes, you can submit it a day or two later if you can't get it from your lender that quickly.

I stopped doing real estate around the time that the forms were changed, so I could be wrong.

From the Arizona Association of Realtors--The new AAR Contract, which requires the use of the LSR, will be available for use after May 2005. Thereafter, the LSR describing the current status of the buyer’s proposed loan should be included in virtually every offer to purchase resale residential property involving financing, even if the buyer has not consulted with a lender.


ALL- is is mandatory.
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Old 10-11-2007, 01:07 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,244,458 times
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Quote:
Originally Posted by CheyDee View Post
What are the facts regarding a Loan Status Report (LSR) in Arizona?

I am working with a local real estate agent who told me it is mandatory in AZ to have a completed LSR in order to make an offer on a house. She also told me that a LSR is only good for a couple of month's time, after which a new one has to be obtained. Is this information correct?

The last time I purchased a house which was mortgaged was 2000, in a different state. At that time the realtor I used told me a conditional loan approval was something agents pushed so they knew they were not wasting their time with a client, nothing more. Has this changed or is this a state to state thing?
The LSR is not statutorily mandated (not law). The LSR is part of the purchase contract (residential) published by the Arizona Assn of REALTORS. It should be noted that there is no mandated form to be used in Arizona and therefore, if someone is using a form other than the AAR form, the LSR might not be mentioned nor required.
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Old 10-12-2007, 01:43 AM
 
Location: the AZ desert
5,035 posts, read 9,219,177 times
Reputation: 8289
I think I am more confused now...
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Old 10-12-2007, 07:24 AM
 
Location: Pinal County, Arizona
25,100 posts, read 39,244,458 times
Reputation: 4937
Quote:
Originally Posted by CheyDee View Post
I think I am more confused now...
OK, let me try this another way

There is no LAW that requires an LSR - None.

The only time an LSR is REQUIRED is, if the contract form that is used requires it. AND, the only form that I am aware of, in AZ, that requires an LSR is the one published by the Arizona Association of REALTORS

Hope this lessens the confusion
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Old 10-12-2007, 08:39 AM
 
Location: Phoenix Arizona
39 posts, read 181,256 times
Reputation: 30
LSR's mean nothing. Any mortgage broker will state what ever they want on the LSR to help their client, as they are in no way liable if the loan doesn't go threw for their client. Go ahead...try and pin them down, you wont be able to as they can make up one of hundreds of reasons why their loan wasn't approved (When they knew it was a shot in the dark in the first place). The LSR is a false positive and really provides no proof that the buyer would finally qualify for the loan....its all a guess until the lender gives the final approval.
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Old 10-12-2007, 11:00 AM
 
Location: the AZ desert
5,035 posts, read 9,219,177 times
Reputation: 8289
Quote:
Originally Posted by Greatday View Post
OK, let me try this another way

There is no LAW that requires an LSR - None.

The only time an LSR is REQUIRED is, if the contract form that is used requires it. AND, the only form that I am aware of, in AZ, that requires an LSR is the one published by the Arizona Association of REALTORS

Hope this lessens the confusion
Now I understand! Thank you so much!!
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