Detailed Answer — What to do and why lenders request renunciation letters

When a reverse mortgage (often a Home Equity Conversion Mortgage, or HECM) is in place, the loan generally becomes due when the last borrower dies, the property is no longer the borrower’s primary residence, or the borrower breaches other loan terms. To sell the property, the estate, trustee, or person with legal authority must pay off the reverse mortgage from sale proceeds or otherwise satisfy the loan. Lenders commonly ask heirs or other occupants to sign “renunciation” or “non-claim” letters before they will issue a final payoff or release lien. These letters are intended to confirm that the signer will not assert occupancy rights or ownership claims that could interfere with sale or foreclosure.

Step-by-step actions to sell the property

1. Confirm the loan and borrower status. Identify whether the borrower is alive or deceased and whether the property is titled in the borrower’s name, jointly, in a trust, or in someone else’s name. If the borrower has died, provide the lender with a certified death certificate so the lender can start the loan maturity process.
2. Get an official payoff statement. Ask the reverse mortgage servicer for a written payoff or reinstatement statement that shows the amount required to pay off the loan on a given date. This number is the amount your sale will need to cover. For HUD-insured HECMs, relevant program information appears on HUD’s site: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmataglance
3. Identify who has legal authority to sell. The person who can sell depends on title: the trustee if property is in a trust; the personal representative or administrator if probate is open; or an owner if title already transferred. If the estate needs probate, an executor or administrator must be appointed under Washington probate law (see Washington probate law: https://app.leg.wa.gov/RCW/default.aspx?cite=11).
4. Understand why the lender wants renunciation letters. Lenders request renunciation, occupancy, or non-claim affidavits to reduce the risk that someone will later claim a right to stay in the house or challenge the sale. That is especially common when there is a surviving spouse, domestic partner, co-tenant, or multiple potential heirs who might assert occupancy or survivorship rights. Under HUD and lender policies, a non-borrowing spouse may have special protections; servicers must follow program rules before approving a sale or payoff.
5. Consider the proper document instead of a one-off renunciation. In some cases the borrower’s successor (trustee or personal representative) can sign an affidavit of authority to sell plus provide letters testamentary or letters of administration from the court; these documents often satisfy lenders more reliably than individual heirs’ renunciations. Washington foreclosure and deed-of-trust procedures are governed by RCW Title 61: https://app.leg.wa.gov/RCW/default.aspx?cite=61.24
6. Use a clear renunciation or occupancy affidavit if the lender still needs it. If the lender insists on renunciation letters from heirs or occupants, those letters should be precise: identify the property, the signer’s relationship to the deceased borrower, state that the signer does not claim ownership or a right to occupy the property, and be signed in front of a notary. Keep in mind that an heir may not validly renounce rights that they do not yet legally hold without proper legal formalities; a court or attorney can advise on the safest wording.
7. If heirs refuse to sign, use the estate or court process. If an heir will not sign, you may be able to proceed by obtaining court authorization to sell the property through probate or by having the trustee (if applicable) sell under the trust’s terms. Opening probate or seeking a court order may be necessary to clear title and satisfy the lender.
8. Close the sale and pay off the loan. At closing, the title/escrow agent will use the lender’s payoff figure to pay the reverse mortgage. Any remaining proceeds go to the estate or sellers, subject to creditor priority and probate rules.

Typical documents lenders request (and why)

• Payoff statement (required to calculate sale payoff)
• Death certificate (if borrower died)
• Letters testamentary or letters of administration (shows authority to act for estate)
• Trust documents and trustee ID (if property in a trust)
• Renunciation, non-occupation, or occupancy affidavits from heirs or occupants (to eliminate claims that could delay sale)

When a renunciation letter is appropriate — and when to be cautious

A properly drafted renunciation letter can clear a sale quickly if it truly reflects the signer’s legal position and the signer has authority to renounce. But beware:

• Some rights (for example, a surviving spouse’s occupancy protection under HUD rules) may require specific procedures and may not be waivable without following HUD guidance or state law.
• Heirs cannot always give up rights they do not legally hold yet without a proper court or estate process. A simple informal statement may not be legally effective.
• Never sign documents you do not fully understand. A notarized renunciation is permanent and may prevent future claims for inheritance or occupancy.

Sample renunciation wording (hypothetical, for drafting purposes only)

Use this only as a drafting starting point. Have an attorney or title company review final language:

I, [Name], being over 18 years of age, declare under penalty of perjury that I am the [relationship to borrower] of [Borrower name]. I renounce any claim to ownership, title, or a right of continued occupancy in the property located at [property address]. I understand this statement may be used by [Lender name] and by any title company to clear title for sale. Signed this [date].

Make the statement notarized and include ID details. Again, get legal review before signing.

When to get help from a Washington attorney or title company

Seek legal help if:

• Multiple heirs dispute sale authority.
• The lender is refusing to provide a written payoff without multiple signoffs.
• There is a surviving spouse or partner asserting occupancy rights.
• Title is unclear or the property may need probate, quiet title, or court sale authorization.

Title companies experienced with reverse-mortgage payoffs can often tell you exactly which documents the lender will accept and may suggest alternative paperwork that resolves lender concerns without multiple renunciations.

Helpful Hints

• Start by getting the lender’s written payoff figure and a list of required documents — do not rely on phone statements alone.
• Provide the lender a certified death certificate promptly if the borrower died; that starts the loan maturity process.
• Confirm who holds title. If the property sits in a trust, the trustee usually sells without probate; provide the trust certification to the lender and title company.
• Consider using a title or escrow company familiar with HECM payoffs — they often know which documents servicers accept.
• Ask the lender to explain exactly what they need the renunciation to say and why. A narrowly worded occupancy affidavit may be enough instead of a broad renunciation of inheritance rights.
• Do not sign away rights without independent legal advice if you are an heir or occupant. A notarized renunciation may permanently remove your legal claims.
• If a quick sale is critical, explore whether a trustee’s sale or court-supervised sale is faster than waiting for all heirs to cooperate.
• Review Washington law on foreclosure procedures and probate if you expect contest or complexity: Deeds of trust and foreclosure: RCW Title 61 — https://app.leg.wa.gov/RCW/default.aspx?cite=61.24; Probate and estate administration: RCW Title 11 — https://app.leg.wa.gov/RCW/default.aspx?cite=11.
• For HUD-insured reverse mortgages (HECMs), review HUD program material for servicer rules: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmataglance