Detailed answer — how this situation generally works in Florida

Basic reverse mortgage mechanics: Most reverse mortgages (Home Equity Conversion Mortgages or HECMs) become due when the last borrower dies, permanently moves out, or defaults on loan terms. The lender will demand payoff. HUD has an overview of HECM procedures here: HUD HECM information.

Why lenders ask for renunciation letters: Lenders often request signed renunciations from heirs or occupants so the lender or a buyer can obtain clear title and proceed with marketing or sale without opening a full probate. A renunciation letter can mean different things depending on lender form language — common purposes include:

• Confirming heirs or occupants renounce claims to remain in the home (so a buyer can close without a tenant issue).
• Confirming heirs waive letters of administration or delay in exchange for proceeding with sale (i.e., they will not seek appointment as personal representative or assert claims that would block closing).
• Helping the lender avoid initiating a formal probate or ancillary administration by obtaining waivers that allow a title company to insure and a buyer to close.

What renunciation legally does in Florida: Under Florida probate law, interested persons can renounce certain rights or refuse appointment as personal representative. Renunciation can speed up a non‑probate transfer, but it can also eliminate certain protections for heirs. Florida probate practice and administration rules are in Chapter 733 and related chapters of the Florida Statutes; if a court action is needed, a probate court will supervise distribution and sale. See Florida statutes on estate administration: Fla. Stat. Ch. 733 (Administration of Estates).

Common options for heirs when faced with a reverse mortgage and renunciation requests:

1. Sell the house quickly and repay the loan. The estate or heirs sell the property; the sales proceeds pay the reverse mortgage plus closing costs and any surplus goes to the estate/heirs. The lender will provide a payoff demand showing the exact amount required to satisfy the loan.
2. Heir(s) keep the home by paying off or assuming the loan. Some reverse mortgage loans allow heirs to assume the loan or to refinance into a regular mortgage if they qualify. Discuss this with the lender and a mortgage broker.
3. Allow the lender to foreclose or take possession. If the estate cannot pay and heirs do not want the home, the lender may foreclose or sell; this is normally the least desirable option because it can reduce any remaining equity.
4. Open probate / get a court order. If heirs refuse to sign renunciations or the lender will not accept them, the estate can open probate. The personal representative (appointed by the court) can sell the property under court supervision. Florida probate law explains how administration works and when a court order is needed: Fla. Stat. Ch. 733.

Key caution: A renunciation document can be broad. It may waive rights to bring claims, to occupy the home, or to receive notice. Do not sign a renunciation without understanding the full legal effect and whether you are giving up rights to claim surplus funds after the loan is paid. If the decedent owned Florida homestead, special protections apply under the Florida Constitution (Article X, Section 4), so you should verify how homestead status affects heirs and the lender. See the Florida Constitution overview: Florida Constitution.

If the lender keeps pressing for renunciations:

• Ask the lender what specific statutory or title problem they are trying to solve and request that explanation in writing.
• Request the exact payoff amount and a written statement of how they will use the signed renunciations and what rights you would be giving up.
• Ask for the lender’s form and, if possible, offer a limited short-form affidavit tailored by your attorney that protects heir rights while addressing the lender’s title concerns.

When a court order or probate may be required: If heirs will not (or cannot) sign the documents the lender wants, or if title insurers refuse to insure without a probate or court order, you will likely need to open probate or get the court to approve the sale. Probate gives the court authority to clear title and distribute proceeds to pay debts, including the reverse mortgage. For background on intestacy and renunciation rules, see Florida Statutes covering intestate succession and renunciation: Fla. Stat. Ch. 732 (Intestate Succession; Renunciation).

When to hire an attorney: Consider hiring a Florida attorney who handles probate and real estate transactions whenever the lender demands renunciations, when homestead issues exist, or when multiple heirs disagree. An attorney can:

• Review the lender form and prepare a narrower document.
• Get a payoff statement and negotiate the timing and method of sale.
• Open probate or obtain a court order approving the sale if needed.
• Protect your right to any excess proceeds after the reverse mortgage is repaid.

Practical example (hypothetical): If your father had a HECM and died owning the house in Florida, the reverse mortgage becomes due. The lender sends a demand for payment and requests renunciation letters from your siblings saying they will not assert occupancy rights and will not delay closing. You do not sign immediately. Instead: (1) request an exact payoff and explanation in writing; (2) speak with a probate attorney to see if you can sell the house without formal probate (some title companies will close on an estate sale with heir affidavits and renunciations, others want probate); (3) if heirs want to keep the house, investigate refinancing or loan assumption; (4) if no agreement is possible, open probate and let the court supervise the sale so title will be clear and lender paid.

Relevant resources: HUD HECM program (see above) and Florida probate statutes for administration questions: Fla. Stat. Ch. 733 and general intestacy/renunciation chapter: Fla. Stat. Ch. 732.

Helpful Hints

• Do not sign any renunciation or waiver until you understand what rights you give up. Request a lawyer review.
• Ask the lender for a written payoff demand and a written explanation of why the renunciation is required.
• Contact a Florida probate or real estate attorney early—this often saves time and money.
• If you plan to sell, start with a title company or real estate agent experienced in estate sales and reverse mortgages.
• Check whether the property was homestead under the Florida Constitution; homestead rules can affect who inherits and what transfers require court action: Florida Constitution.
• If multiple heirs exist, get an agreement in writing about how to proceed. Disputes commonly force probate and slow the sale.
• If you suspect unfair lender demands or confusing forms, ask the lender to accept a limited affidavit prepared by your attorney that addresses only the specific title concern.