Detailed answer — what is happening and what you can do

If the decedent’s home has a reverse mortgage (usually a Home Equity Conversion Mortgage, or HECM), the loan typically becomes due when the last surviving borrower dies, when the home is no longer the borrower’s principal residence, or when other loan conditions trigger repayment. The lender must be repaid in full before title can be transferred free of the mortgage lien. Lenders often ask for paperwork that shows who has legal authority to act for the estate or who will sell the home.

What lenders mean by “renunciation letters”

In a probate context, a renunciation generally means a person who could be appointed as the estate’s personal representative (executor or administrator) formally gives up that right. A lender may ask heirs to sign renunciations so a particular person can be appointed personal representative without objection, or so the lender can accept a single person’s authority to market and sell the property without requiring full probate paperwork from every potential heir.

Why the lender requests them

• To confirm who has authority to enter into a sales contract and convey title.
• To reduce the risk of a later claim from another heir that could cloud title after closing.
• To satisfy internal servicing rules and federal requirements for HECM loans.

Common paths to resolve the issue in South Carolina

Below are the typical options, with the usual order of preference for a lender and most buyers.

1. Open probate and obtain letters of appointment.

   Filing the will (if there is one) or a petition for appointment of an administrator with the probate court gives the appointed person formal authority to act. Once you have letters testamentary or letters of administration from the probate court, most lenders will accept those documents as proof of authority to sell and will stop asking for renunciation letters.

2. If all heirs agree, consider an inter vivos transfer or signed deed.

   If the decedent left no other claimants and every heir signs a deed transferring title to a single seller, that can sometimes allow a sale without probate. Lenders often still require probate documents or clear evidence of authority to ensure the transfer is valid. Do not rely on this step without lender confirmation and title company approval.

3. Use a renunciation or waiver when appropriate.

   When the lender specifically needs renunciations of appointment, heirs can sign them (usually in a form acceptable under South Carolina probate law) so a preferred person can be appointed by the court or to remove objecting claims. Because formal renunciations must meet statutory and court requirements to be effective, have them prepared or reviewed by counsel or the probate clerk so the lender will accept them.

4. Ask the lender for a written, itemized list of exactly what they require.

   Servicers sometimes use different paperwork names. Request the exact documents, acceptable forms, and whether the lender will accept court-issued letters rather than private renunciations. Get deadlines in writing (how long the servicer will wait for sale or payoff offers, extension policies, etc.).

5. Hire a South Carolina probate or real estate attorney if the lender remains unsatisfied.

   An attorney can prepare proper renunciation documents, petition the probate court for quick appointment of a personal representative, or negotiate with the lender and the title company. Attorneys also protect you from later claims by other heirs.

Practical sequence to follow

1. Obtain certified copies of the death certificate and a copy of any will.
2. Contact the lender’s loss-mitigation or probate department; ask what exactly they mean by “renunciations” and for a written list of required documents.
3. If you want clear, accepted authority quickly, open probate in the county where the decedent lived and obtain letters of administration or testamentary from the probate court.
4. If all heirs agree and you prefer to avoid formal probate, get written confirmation from the lender and title company that a specified alternative document (affidavits of heirship, deed from all heirs, etc.) will be accepted.
5. Retain a probate/real estate attorney if the lender refuses to accept reasonable heir-signed documents or if heirs disagree.

Relevant South Carolina resource links

• South Carolina Code (Probate statutes and related rules): South Carolina Code of Laws.
• South Carolina Courts — Probate information and how to open an estate: South Carolina Judicial Branch: Probate.
• HUD HECM (reverse mortgage) program information and servicer guidance: HUD — HECM.
• South Carolina Bar — Lawyer referral if you need a probate or real estate attorney: SC Bar: Need a Lawyer.

Helpful hints — practical items to gather and next steps

• Get multiple certified copies of the death certificate (the lender and probate court will want originals or certified copies).
• Find the original mortgage note and any correspondence; note the lender’s account number and contact person for the estate file.
• Locate the decedent’s will (if any) and a current title report or deed showing ownership.
• Request the lender to put required documents and deadlines in writing, including whether the servicer will accept letters of administration in lieu of renunciations.
• If heirs are cooperating, get everyone’s consent in writing. A single signed and notarized document from every heir is more likely to satisfy a lender than informal email agreements.
• If possible, obtain a preliminary title report before listing the home. This will show lender liens and any other clouds on title that the lender or buyer will raise.
• Ask the lender about repayment timelines and extension policies for HECM loans — federal HUD rules govern servicer conduct, but individual servicers may have specific procedures.
• When in doubt, use a probate attorney to draft renunciation language that complies with South Carolina requirements so the lender cannot later dispute the form.