FAQ — Selling a Home with a Reverse Mortgage After the Borrower’s Death (Tennessee)

Short answer: Start by getting the death certificate, contact the reverse mortgage servicer to request a written payoff quote and the exact renunciation language they want, and determine who has legal authority to act for the estate (executor/administrator or heirs). If the title is only in the decedent’s name, you will usually need a personal representative or an appropriate affidavit under Tennessee probate law to clear title before a sale. If the lender insists on renunciation letters, ask them for a template and consult a Tennessee probate attorney to prepare signed, notarized renunciations or disclaimers that satisfy both the lender and local recording/title requirements.

Disclaimer

This is general information only and not legal advice. I am not a lawyer. For legal rights, obligations, and binding documents you should consult a licensed Tennessee attorney experienced in probate and real estate or a title company familiar with reverse-mortgage payoffs.

Detailed answer — what’s happening and what to do next

1) Why the lender requests renunciation letters

A reverse mortgage (typically a Home Equity Conversion Mortgage, or HECM) becomes due when the last borrower permanently leaves the home or dies. The lender must be sure it is dealing with the person or entity that has legal authority to sell or otherwise convey the property. Lenders sometimes ask for written “renunciations” (also called disclaimers or affidavits of non-interest) from people who might claim an ownership interest so the lender can accept a payoff and release its lien without future disputes.

2) Key documents to gather immediately

• Official death certificate (multiple certified copies).
• A copy of the reverse mortgage loan servicer’s contact information and account number.
• Any deed, title documents, and copies of wills or trust instruments.
• Information about co-borrowers, spouses, or surviving joint owners.

3) Confirm who can act to sell the house under Tennessee law

If the decedent left a will, the named executor should be appointed by the probate court to act for the estate. If there is no will, the court will appoint an administrator. Where property passed outside probate (for example, joint tenancy or a properly executed transfer-on-death deed), the surviving owner may sell without probate. Tennessee probate rules govern appointment and powers of representatives; see Tennessee’s Probate and Administration statutes for details: Tenn. Code Ann. Title 30 (Probate and Administration).

4) Ask the lender exactly what they want and why

Before generating any documents, request a written payoff quote and a written list of required documents, including the exact wording or form of the renunciation letter they will accept. Common acceptable documents include:

• The lender’s own renunciation/disclaimer form signed and notarized by interested parties.
• A certified copy of letters testamentary or letters of administration showing the executor/administrator’s appointment and authority to sell.
• A recorded deed or affidavit showing a transfer of title prior to the loan becoming due.
• A court order authorizing sale if title is contested.

5) If people are being asked to renounce, who signs?

Typical signers are persons who might claim an interest in the property — heirs at law, named beneficiaries, or a surviving spouse — who agree to disclaim any claim so the property can be sold and the loan repaid. A person who signed a power of attorney cannot continue to act after the principal’s death, so a lender may require a renunciation from that agent and confirmation of the estate representative’s authority instead.

6) How renunciation/disclaimer documents are prepared and recorded

Many lenders will provide a template. If they don’t, a Tennessee attorney or title company can draft an affidavit or disclaimer that contains the required elements (clear statement of non-claim, identity of the renouncing party, notarization, and any required witness language). If the renunciation affects record title, the document may need to be recorded in the county land records.

7) Probate, small estates, and alternatives

If the house is solely in the decedent’s name, probate is often necessary to transfer title before a clear sale can happen. Tennessee has probate procedures and certain streamlined procedures for small estates — check Tenn. Code Ann. Title 30 for specifics about appointment of personal representatives and small estate processes: https://www.capitol.tn.gov/legislation/laws/TITLE30.html. A competent Tennessee probate attorney can advise whether a summary process or affidavit is permitted for your situation.

8) Timelines and payoff

HECM loans become due and payable upon death of the borrower(s), but federal rules and lender practices vary about how long heirs have to sell the property. The U.S. Department of Housing and Urban Development publishes HECM guidance and basic borrower/heir information on timelines and options: HUD — HECM (reverse mortgage) information. Ask the servicer in writing how long you have to market and sell, whether there are extensions, and their process for accepting payoff funds at closing.

9) When to involve professionals

• Hire a Tennessee probate attorney if the estate needs administration, if the lender won’t accept commonly used documents, or if heirs disagree.
• Use a title company early. They can often tell you which recorded documents or affidavits will clear title and what form the lender’s renunciations must take so a title policy can issue after sale.
• Consider a real estate agent who has experience with estate sales and reverse mortgage payoffs.

10) Practical example (hypothetical)

Suppose a homeowner with a HECM dies leaving the house solely in his name and three adult children who are possible heirs. The lender demands renunciations from the children before issuing a payoff letter. Steps the family should take:

1. Obtain certified death certificate copies.
2. Ask the lender to provide a written payoff quote and the exact renunciation text or form.
3. If there is a will, petition probate to appoint the executor; if not, petition to become administrator. If the property qualifies, ask your attorney about a small-estate affidavit that may avoid full probate.
4. Have the children sign the renunciation/disclaimer in the lender’s requested form in front of a notary — or have a Tennessee attorney prepare a recorded affidavit acceptable to the title company and lender.
5. List the house, accept an offer, use proceeds at closing to satisfy the HECM payoff, and record the necessary documents to clear the lender’s lien.

Helpful Hints

• Always get the lender’s requirements in writing. Verbal promises can cause problems at closing.
• Keep multiple certified death certificates — lenders, the county court, and title companies will each want originals.
• Ask the lender for a sample renunciation or their preferred template before drafting anything.
• Don’t rely on a power of attorney after the principal dies — that authority ends at death.
• Work with a Tennessee title company early to confirm whether the renunciations must be recorded to clear title.
• If heirs refuse to sign required renunciations, talk to a probate attorney about a court order authorizing sale or quieting title.
• Timing matters — get a written payoff quote that states how long it’s valid and whether the servicer will allow extensions while the house is marketed.

Relevant resources

• HUD — HECM (reverse mortgage) program overview: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome
• Tennessee probate statutes (Title 30): https://www.capitol.tn.gov/legislation/laws/TITLE30.html

If you want, I can draft a checklist of documents to share with the lender or a sample request for their exact renunciation wording. I can also list questions to ask a Tennessee probate attorney or title company when you call them.