How to proceed when a reverse mortgage servicer asks for renunciation letters (Virginia)

Short answer: When a homeowner with a reverse mortgage dies, the loan becomes due. To sell the house you must coordinate with the reverse mortgage servicer, provide a death certificate and proof of your authority to act, and either repay the loan from sale proceeds or get approval for a sale. If the servicer keeps requesting “renunciation” letters, they are seeking clear, court-recognized proof about who will (or will not) serve as the estate’s personal representative so the servicer can accept payoff and release the lien. In Virginia, resolving that issue usually means opening probate or filing a formal renunciation in the circuit court, or using another court-approved proof of authority. See Virginia probate law: https://law.lis.virginia.gov/vacode/title64.2/ and Virginia real property/mortgage law: https://law.lis.virginia.gov/vacode/title55.1/.

Disclaimer

This article explains general Virginia procedures and is for educational purposes only. It is not legal advice. Consult a Virginia attorney about your specific situation.

Detailed answer — what’s happening and what you can do

Why servicers request renunciation letters

A reverse mortgage (commonly a HECM insured by HUD/FHA) becomes due when the borrower dies, the home is no longer a primary residence, or other maturity events occur. The loan servicer must know who is legally authorized to act for the estate before it will accept payoffs or sign off on a sale. A “renunciation” letter is a document in which a person who might otherwise be appointed as personal representative formally declines to serve. Lenders request such documents to avoid disputes about whether a person signing for the estate actually has the court authority to convey title or accept payoff funds.

Common Virginia pathways to clear title authority

• Open probate and have the circuit court appoint a personal representative (administrator/executor). The court-issued letters testamentary or letters of administration provide clear authority to sign closing papers and handle the mortgage payoff. See Virginia probate law: https://law.lis.virginia.gov/vacode/title64.2/.
• If someone entitled to appointment refuses to serve, that person can file a formal written renunciation with the court. Once the renunciation is part of the record, the court can appoint the next qualified person and issue letters to that person.
• When the estate is small or the deed allows, some transfers can happen without full probate (for example, a transfer-on-death deed, joint tenancy rights, or other nonprobate title mechanisms). Whether those options work depends on the title documents and facts. Confirm with the servicer and local counsel.
• If no probate is opened but the lender still needs proof, the servicer may accept a combination of: death certificate, affidavit of heirship (if accepted by the servicer), and a broker’s/attorney’s statement — but servicers vary and many insist on court-issued letters.

Practical steps to sell the property

1. Obtain multiple certified copies of the death certificate. The servicer will require at least one.
2. Contact the reverse mortgage servicer in writing. Ask for a written checklist of exactly what they will accept to process a sale and receive final payoff instructions. If they request renunciation letters, ask whether they will accept court-issued letters appointing a new personal representative instead.
3. Locate the original loan documents and the current payoff demand. Get a written payoff quote that explains the amounts and deadlines.
4. Check whether the property is already in probate. Contact the clerk of the circuit court in the county where the property is located to search for any estate filings.
5. If probate is necessary or likely, file a petition for appointment of a personal representative in the circuit court. If an heir who would ordinarily serve refuses, that person can execute a renunciation in court so someone else can be appointed.
6. Work with the appointed personal representative (or a court-accepted signer) to list and sell the home. At closing, payoff the reverse mortgage from sale proceeds and obtain the lender’s release of lien.
7. If the servicer refuses to accept sale proceeds without additional documents, request a written explanation and the exact court or statutory authority for the requirement. If the servicer’s demand seems excessive, consult a Virginia attorney or contact HUD’s HECM program resources: https://www.hud.gov/program_offices/housing/sfh/hecm.

What if an heir won’t sign or won’t renounce?

If an heir refuses to renounce and blocks appointment as personal representative, the court can appoint a different qualified person. You can ask the court to appoint another heir, a neutral individual, or a public fiduciary. The court process can add time and cost to the sale, but it produces the clear, market-accepted authority title companies and servicers require.

Timeline and risk

Reverse mortgage servicers follow deadlines. HUD-insured HECMs generally require estate repayment or sale within a specified period after the borrower dies. If the matter stalls, the servicer may start foreclosure proceedings. Move quickly to obtain the documents the servicer requires and to open probate if necessary.

Helpful hints

• Get the servicer’s requirements in writing—email or letter—so you know precisely what they will accept at closing.
• Search the local circuit court for existing probate filings before filing new ones. The court clerk can confirm whether letters have been issued.
• If the estate is small, ask the servicer whether they will accept an affidavit of heirship or other limited proof instead of full probate. Some servicers will accept alternative documents in low-value situations, but many will not.
• Keep all communications with the servicer and copies of payoff demands and title reports. These will help at closing and if disputes arise.
• Don’t ignore foreclosure notices. Even if you are negotiating a sale, the servicer’s timelines continue to run until they accept payoff and release the lien.
• If an heir is uncooperative, consider filing for a court appointment as personal representative yourself. Courts can act quickly in uncontested probate matters with the right papers.
• Consider hiring a Virginia attorney experienced in probate and reverse mortgages. If you need help finding counsel, use the Virginia State Bar lawyer referral service: https://www.vsb.org/site/public/lawyer-referral.
• Refer to HUD’s HECM information to understand federal program requirements that affect servicer actions: https://www.hud.gov/program_offices/housing/sfh/hecm.

When to seek legal help

Talk with a probate or real estate attorney if any of the following apply:

• The servicer refuses to accept a sale payoff without multiple rounds of inconsistent documentation;
• An heir refuses to renounce and blocks appointment or sale;
• You face a potential foreclosure timeline and need to close a sale quickly;
• Title companies refuse to insure the sale because of missing court documents.

Again, this is educational information and not legal advice. For guidance tailored to your facts, consult a Virginia attorney about probate, renunciation, and reverse mortgage payoffs.