Disclaimer

This article is for general information only and is not legal advice. It explains common Maryland procedures and options so you can make an informed decision about hiring an attorney or contacting the mortgage servicer. For legal advice tailored to your situation, consult a qualified Maryland attorney or the Register of Wills.

Detailed Answer

If you are trying to sell a deceased parent’s house and the reverse mortgage servicer keeps requesting “renunciation letters,” you are not alone. Lenders often ask for extra paperwork to confirm who has legal authority to act for the estate, who will handle the sale, and who renounces (gives up) the right to be the estate’s personal representative. Under Maryland practice, the path forward depends on title ownership, whether the deceased borrower left a will, and whether someone has or will be appointed by the Register of Wills as the personal representative (executor or administrator).

Step 1 — Identify who actually owns the property and who the servicer recognizes

• Locate the deed and confirm the name(s) on title. Is the house owned solely by your father, jointly with someone else, or held in a trust?
• Get a copy of the reverse mortgage payoff statement and the servicer’s written instructions. If the loan is a Home Equity Conversion Mortgage (HECM), federal HUD rules and the servicer’s loss-mitigation policies also apply. HUD provides guidance for HECMs at: hud.gov — HECM information.

Step 2 — Understand what the servicer means by “renunciation letters”

In Maryland, a “renunciation” often refers to a person giving up the right to be appointed the personal representative of the decedent’s estate. A lender may ask heirs to sign renunciation forms so the lender can deal with a single appointed representative (or with an identified person) rather than with multiple heirs who could later claim authority. The servicer may also request signed statements that heirs will not contest a sale or will allow the estate representative to transfer title to the buyer.

Step 3 — Options to clear the way for a sale

1. Get appointed as personal representative (preferred when probate is needed). If the estate must be probated, file the will (if there is one) and open an estate with the Register of Wills in the county where your father lived. When the court issues Letters Testamentary or Letters of Administration, the personal representative has authority to sell estate real property and can give the servicer the court-issued letters as proof of authority. Learn how to contact Maryland’s Register of Wills: Maryland Courts — Register of Wills.
2. Heirs can renounce formally to let someone else act. If several heirs are entitled to serve but do not want to be the personal representative, they can sign renunciation forms that let another person be the appointed representative. The Register of Wills can accept renunciations as part of opening probate so only one person must be appointed. Ask the local Register of Wills about the proper renunciation form and filing steps: Probate forms and instructions.
3. If the property title has multiple owners who can sell without probate. If the deed lists joint owners with right of survivorship or the house is in a living trust, a probate appointment may not be necessary. Provide the servicer with the recorded deed or trust documents to show who can convey title.
4. Short timeline note for HECMs. For federally insured reverse mortgages (HECMs), the loan typically becomes due and payable after the borrower’s death or when the property is no longer the principal residence. Servicers commonly require notification and documentation, then provide a period for heirs to sell, refinance, or transfer title. Contact the servicer for exact timelines and a payoff statement; HUD’s HECM pages explain obligations for successors: HUD — HECM.

Step 4 — If the servicer insists on renunciations that you think are improper

• Request written, itemized guidance from the servicer listing exactly what form(s) they need and why. Ask the servicer to point to the specific policy or legal basis for the request.
• Provide commonly accepted proof of authority first: the death certificate, recorded deed, copy of the will, and any court-issued Letters. Sometimes servicers accept a court document instead of signed renunciations.
• If the servicer still refuses to accept reasonable documentation, get a written denial and consult a Maryland probate or real estate attorney. A title company also can explain what they need for a clean closing.
• For HECM-specific disputes, you can also raise concerns with HUD or review HUD’s servicer rules. HUD’s complaint info: HUD HECM resources.

Step 5 — Closing the sale and paying off the reverse mortgage

At closing, the reverse mortgage is paid from the sale proceeds (or the purchaser’s lender). The personal representative or other authorized seller signs the deed. The title company will require documentation showing authority to sign (Letters, trust documents, or recorded deed), and it will obtain a payoff demand from the servicer. If heirs have signed renunciations to designate a single representative, bring those documents to the title company or closing attorney.

When you should involve a Maryland attorney

Consider hiring an attorney if:

• Heirs disagree about selling or about who should serve as personal representative.
• The servicer demands unusual or contradictory paperwork and will not accept standard probate documents.
• You suspect the servicer is wrong about legal requirements or is delaying a sale without justification.
• Title problems arise (e.g., missing spouse signatures, unknown heirs, or unrecorded deeds).

A probate or real estate attorney can file for appointment with the Register of Wills, prepare or review renunciations, negotiate with the servicer, and handle the sale closing.

Helpful Hints

• Gather documents first: death certificate, recorded deed, mortgage statements, will (if any), and contact information for all heirs.
• Ask the servicer in writing what exact form they want and whether a court-issued Letter of Administration or Letters Testamentary will satisfy them.
• Contact the Register of Wills in the county where the decedent lived for instructions on renunciation and opening probate: mdcourts.gov — Register of Wills.
• Work with a Maryland title company early—title searches often reveal issues that stall a sale.
• If the property is a HECM, read the servicer’s payoff requirements and HUD guidance: HUD HECM guidance.
• If multiple heirs do not want to serve as personal representative, a simple renunciation filing can speed appointment of a single representative — ask the Register of Wills for the correct process and form.
• Keep detailed records of all communications with the servicer (dates, names, and summary of what was said) in case you need to escalate or show a court the servicer’s demands.