Selling a House with a Reverse Mortgage in New Hampshire: Dealing with Requests for Renunciation Letters

Short answer: When a reverse mortgage lender repeatedly requests renunciation letters, they are usually trying to confirm who has legal authority to act for the borrower or the borrower’s estate. In New Hampshire you can usually resolve this by (1) clarifying exactly what the lender needs, (2) providing formal probate paperwork (Letters Testamentary or Letters of Administration) or an accepted power of attorney, or (3) asking the probate court to appoint a personal representative or accept renunciations so someone can proceed with the sale. If informal solutions fail, you will likely need to open a probate or ask the court to resolve competing claims to authority.

Why a reverse mortgage lender asks for renunciation letters

Lenders that hold Home Equity Conversion Mortgages (HECMs) or other reverse mortgages must be sure that whoever sells the house is legally authorized to do so. Typical reasons lenders ask for renunciations include:

• The named executor or next-of-kin has not consented to allow another person to act;
• The lender wants written confirmation that a person named in a will or entitled by law renounces the right to be appointed personal representative so someone else can be appointed;
• The borrower is alive but incapacitated and the lender will not accept a power of attorney for that transaction without a court appointment; or
• There are competing potential personal representatives or unclear title issues.

Step-by-step approach to resolve the issue under New Hampshire procedures

1. Identify the borrower’s status.
   • If the borrower is deceased: you will need a death certificate and proof of authority (probate documents) to sell the property or to obtain payoff instructions from the servicer.
   • If the borrower is alive but incapacitated: the servicer may require a conservatorship/guardianship order or may accept a durable power of attorney depending on the servicer’s policies and whether the POA is limited or general.
2. Ask the lender exactly what they need and why. Request a written list of acceptable documents and, if possible, a sample renunciation form. Some servicers will accept alternative proof of authority such as Letters Testamentary/Letters of Administration issued by the New Hampshire Probate Court or a recorded deed transferring title.
3. If the borrower is deceased, obtain probate paperwork. If there is a will, the named executor can open probate and obtain Letters Testamentary. If there is no will, the next eligible person can petition for appointment and receive Letters of Administration. These documents demonstrate legal authority to sell. For general probate information and forms, see the New Hampshire Probate Court pages: https://www.courts.state.nh.us/nhprobate/.
4. If people named to serve refuse or are unavailable, obtain written renunciations or a court order.
   • A renunciation is a signed, often notarized, document in which a person with priority to be appointed personal representative gives up that right so someone else can be appointed. The probate court accepts renunciation filings under its procedures so the court can appoint an alternate person.
   • If someone refuses to sign a renunciation, file a petition with the probate court asking the court to appoint a personal representative despite the refusal or to resolve the dispute.
5. Provide the lender with the probate appointment plus required closing paperwork. The servicer usually needs a certified copy of Letters Testamentary/Administration, a certified death certificate, property deed, and a payoff demand. Once the appointed personal representative is established, the sale can proceed and the title company or closing agent will pay off the reverse mortgage as part of closing.
6. Consider alternatives if quick sale is necessary.
   • Short sale: if sale proceeds will be less than the mortgage payoff, the servicer may allow a short sale if you get their approval and provide required documents.
   • Deed in lieu of foreclosure or conveyance options: HUD and servicers sometimes have procedures for conveying properties to the insurer or for other disposition options; see HUD HECM information: https://www.hud.gov/program_offices/housing/sfh/hecm.

Practical tips for working with the lender

• Get the servicer’s document checklist in writing. Different servicers accept different forms. Ask for a sample renunciation if that is what they request.
• Provide certified probate documents rather than informal letters from heirs when possible. Lenders prefer court-issued documents.
• If someone named in the will or by intestacy law refuses to cooperate, file a petition in New Hampshire Probate Court to resolve representation and to obtain a court order authorizing the sale.
• Use a title company or real estate closing agent experienced with reverse mortgages — they often know what servicers accept and how to coordinate payoffs at closing.
• Keep a paper trail: written requests to the servicer, copies of what you send, and notes of telephone conversations (date, time, person spoken to, summary).

Common scenarios and what to expect

Scenario A — Borrower deceased, will names an executor who cannot or will not act: Ask that person to sign a renunciation and file it with probate so the court can appoint the next eligible person. If they refuse, petition the probate court for appointment.

Scenario B — Borrower alive but incapacitated; POA exists: Confirm the lender’s POA acceptance policy. Many reverse mortgage servicers have strict POA rules; some may require a conservator or guardian appointed by the court.

Scenario C — Multiple heirs disagree: The probate court can resolve disagreements about who may sell. If time is critical, consider asking the court for interim relief to allow a sale under court supervision.

Documents you should gather right away

• Certified copies of the decedent’s death certificate (if applicable).
• Original will (if any).
• Mortgage or reverse mortgage loan number and servicer contact information.
• Property deed and tax information.
• Any existing powers of attorney, trust documents, or prior court orders.

Where to get help in New Hampshire

• New Hampshire Probate Court information and local probate office contacts: https://www.courts.state.nh.us/nhprobate/.
• General New Hampshire statutes and links to state law: https://www.gencourt.state.nh.us/rsa/html/.
• HUD information on HECM reverse mortgages (policy and servicer guidance): https://www.hud.gov/program_offices/housing/sfh/hecm.
• If you need help preparing probate filings or dealing with a non-cooperative heir, consult a New Hampshire probate or real estate attorney for advice and representation.

Helpful Hints

• Ask the servicer to send a written list of acceptable forms. That prevents wasted time preparing the wrong documents.
• File for probate early if the lender insists on court-issued documents — probate appointment is usually the clearest authority to sell a property.
• One signed renunciation often solves the problem quickly. If multiple people have priority and all sign renunciations, the court can appoint the person who will manage the sale.
• Don’t sign away the property or accept verbal promises without a written, recorded deed and payoff confirmation from the servicer.
• Keep copies of all renunciations and court papers and deliver certified copies to the lender and the title company before closing.
• If time is limited, discuss expedited probate procedures with the probate clerk or an attorney — in some cases courts can move faster when there is a pending sale.

Final note: The specific documents that a reverse mortgage servicer will accept can vary by servicer and by the loan’s circumstances. If informal requests for renunciation letters do not solve the problem, a petition to the New Hampshire Probate Court to appoint a personal representative or to resolve competing claims is a common and effective next step.

Disclaimer: I am not a lawyer. This article is informational only and does not constitute legal advice. For advice about your specific situation, contact a New Hampshire probate or real estate attorney or the New Hampshire Probate Court.