Detailed Answer

Short answer: lenders typically ask for a renunciation when they need clear authority to allow a sale or payoff of a reverse mortgage after the borrower’s death or other triggering event. In Massachusetts you can satisfy that need several ways — by producing the proper probate documents (Letters of Administration/Letters Testamentary), a proper court order allowing the sale, a valid deed from the legal owners, or a properly executed renunciation if that is the correct form for the particular situation. Which route is right depends on title, whether the borrower is deceased, whether a co-borrower remains, and whether an estate administration is open.

Why a lender asks for a renunciation

• They need proof of who has legal authority to act for the property or the estate before accepting a payoff or release of mortgage.
• They want to avoid future claims: a renunciation from someone who has notice can prevent later disputes about who could have acted.
• They may be following internal underwriting or federal mortgage program rules (HECM rules) and want specific signed documents before closing the loan payoff or releasing the lien.

Common Massachusetts scenarios and the usual solutions

1) Borrower is deceased and no probate has been opened

Problem: Title still shows the decedent. The lender wants proof that the person selling the property has authority.

Practical solutions:

• Open a probate case and obtain Letters of Administration or Letters Testamentary from the Massachusetts Probate and Family Court. Those letters show who has authority to sell estate real estate. See the Probate & Family Court website for how to start a probate: https://www.mass.gov/orgs/probate-and-family-court.
• If probate would be lengthy or unnecessary, ask the lender if it will accept a deed signed by all heirs (if heirs agree) or a specific affidavit of heirship if the lender accepts that form.
• Ask the lender for their exact form or template and the legal basis for requesting renunciations. Some mortgagees will accept a court order authorizing sale instead of private renunciations.

2) A designated person received notice of appointment but wants to step aside

Problem: The person noticed as the proposed personal representative may not want to serve. The lender may require a signed renunciation so they can recognize a different person as the estate representative.

Practical solutions:

• That person may sign a renunciation of appointment in the probate matter so the court can appoint an alternate personal representative. Massachusetts probate practice follows the Massachusetts Uniform Probate Code found in Chapter 190B: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B.
• After renunciation, the court can appoint whoever the heirs propose; once the court issues Letters, the lender usually accepts them as proof of authority to sell.

3) Lender wants heirs to renounce certain rights to proceeds or administration

Problem: A lender may ask heirs to sign narrow renunciation language (for example, renouncing any claim to act as personal representative or to claim mortgage proceeds) to eliminate potential future disputes.

Practical solutions:

• Do not sign any document you do not understand. Ask the lender to provide the exact wording and the legal justification. Ask for time to have a lawyer review the language.
• Consider offering an alternative: a court order authorizing the sale or Letters from probate that make renunciations unnecessary.

Documents lenders commonly accept (instead of or in addition to a renunciation)

• Letters Testamentary or Letters of Administration from the Massachusetts Probate and Family Court.
• A court order specifically authorizing sale of the decedent’s real estate and directing payoff of the mortgage.
• A deed executed by all legal owners/heirs (if the heirs collectively own the property and there is no prohibition from probate).
• For some small estates, an affidavit or other statutory small‑estate procedure recognized by the lender or the court.

Massachusetts law references

Massachusetts handles appointment and authority of personal representatives under the Massachusetts Uniform Probate Code (Chapter 190B). For an overview see: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B.

Massachusetts homestead law and certain protections for a decedent’s residence are in Chapter 188 (Homesteads): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter188.

Reverse mortgages (HECMs) are also governed by federal HUD rules. General HECM information is at HUD: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome.

Best practice steps to move forward

1. Confirm status of the loan: Is it a HECM (HUD/FHA) reverse mortgage? Ask the lender to identify the loan type and provide the exact renunciation form or template they want.
2. Clarify who holds title. Check the deed and any survivorship language (joint tenancy, tenancy by the entirety, etc.). If a surviving co-borrower remains on title, they may be able to sell without probate.
3. Ask the lender whether they will accept Letters from the Probate Court or a court order instead of private renunciations. If yes, begin a short probate filing to obtain authority to sell.
4. If probate would be lengthy or impractical, ask whether the lender will accept a deed executed by all heirs or an affidavit of heirship; if so, obtain the required signatures and notarizations.
5. Do not sign a blanket renunciation without review. Get the lender’s exact paperwork, then have an attorney review before you sign anything that purports to waive rights or release claims.
6. If the lender refuses reasonable alternatives, consult a Massachusetts probate or real estate attorney and consider asking the court for a sale authorization or instruction to the lender. A court order usually resolves lender hesitancy.

When to call an attorney

Consider hiring a Massachusetts probate or real estate attorney if any of these apply:

• Heirs disagree about whether to sell.
• The lender insists on a renunciation that would waive important rights or claims.
• Title is unclear or there is a pending probate dispute.
• You need a court order to resolve conflicting claims or to speed a sale.

For information about starting probate or to find local court forms, visit the Massachusetts Probate & Family Court: https://www.mass.gov/orgs/probate-and-family-court.

Practical example (hypothetical)

Suppose Dad had a HECM, died, and title still shows his name. The lender requests renunciation letters from siblings before it will accept a payoff from a buyer. Steps you could take:

1. Ask the lender for the exact renunciation wording and whether it will accept Letters from probate or a court order instead.
2. If the siblings all agree to sell, either open a short probate to get Letters for the proposed personal representative or prepare a deed signed by all heirs if the lender will accept it.
3. Have an attorney review any renunciation language. If the language is narrow (renouncing appointment as personal representative) it may be safe; if it waives other estate rights, do not sign until advised by counsel.

Key takeaway

Lenders request renunciations because they want certainty about who can legally sell the property and clear title after payoff. In Massachusetts, the most secure path is usually to present probate Letters or a court order authorizing the sale. If probate is avoidable, ask the lender whether it will accept a deed from all heirs or a recognized affidavit instead of renunciations. Always get the lender’s exact requested language and have an attorney review any document that could waive rights.

Disclaimer: This article is for general information only and does not provide legal advice. It does not create an attorney-client relationship. For advice about your particular situation contact a Massachusetts probate or real estate attorney.

Helpful Hints

• Ask the lender for their exact form and the legal basis for the request — lenders sometimes have standard forms they can adapt.
• Do not sign anything that waives broad rights without legal review. A narrow renunciation of appointment differs from a broad waiver of inheritance rights.
• Letters from the Massachusetts Probate and Family Court solve most lender concerns about authority to sell. If possible, get them.
• If all heirs agree to sell, a deed signed by all heirs might be quicker — but confirm the lender will accept it first.
• Keep clear records: copies of correspondence with the lender, the renunciation form they provided, and any probate filings or court orders you obtain.
• Use certified mail or tracked email for important documents so you have proof of delivery to the mortgagee.
• If the reverse mortgage is a HUD-insured HECM, reference HUD guidance when negotiating with the lender: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome.