Lozar was one of three wizard survivors of the Crandor Island tragedy—the others being Thalzar and Melzar. Each of them took a piece of a map of Crandor to prevent anyone from journeying to the perilous island that was burned down by Elvarg, the Dragon of Crandor. In the year 169, however, Lozar was killed by goblins, who looted her possessions.
It is confirmed during the Dragon Slayer quest that Wormbrain, an imprisoned goblin, was in fact a member of the raiding party who killed Lozar. To get her map piece from Wormbrain, you need to do one of two things. Either beat him up and use Telekinetic Grab on the map when he's defeated, or pay him a hefty sum of 10,000 gold pieces.
Her former home is the ruined one by the northern wooden bridge east of the River Lum that is in disrepair and filled with goblins.