Detailed answer

When your father had a reverse mortgage (most commonly a HUD-insured HECM), the loan generally becomes due when the last borrower dies, the property is no longer the borrower27s principal residence, or another maturity event occurs. The lender must be repaid at closing when the property is sold. Lenders often ask for a set of probate or heir-related documents before they will issue a formal payoff amount or allow a sale to close. One frequent request is for a “renunciation” or “disclaimer” letter from heirs or potential claimants.

What is a renunciation (disclaimer) letter and why do lenders ask for it?

A renunciation (sometimes called a disclaimer) is a signed statement from an heir or potential claimant saying they refuse or renounce any interest in the property or in the deceased27s estate under the will or by intestacy. Lenders request these because they want assurance that no one else will later claim an ownership interest that could interfere with a clear title transfer at closing. The lender is protecting its right to be repaid and the buyer27s and title insurer27s interests.

Typical documents a reverse mortgage lender may require before issuing payoff or allowing sale

• Death certificate for the borrower(s).
• Proof of authority to sell property: letters testamentary, letters of administration, or a certified copy of a probate court order appointing an executor/administrator (if the estate is opened).
• A completed payoff request form and the lender27s payoff statement (demand) with an expiration date.
• Signed renunciation/disclaimer letters from any person who might claim an interest (heirs, beneficiaries, surviving spouse, co-tenants).
• A copy of the deed showing current title and any recorded affidavits, liens, or judgments.

How to proceed in Mississippi if the lender keeps asking for renunciations

1. Ask the lender for a written, detailed list of exactly what they need. Get the request in writing so you and any attorney or title company know the exact documents and the format the lender wants (notarized, apostilled, witnessed, etc.).
2. Determine whether the estate is in probate or whether you have authority to sell. If there is a will and an executor named, that person should open probate and obtain letters testamentary. If there is no will, someone should open an administration and obtain letters of administration. Most lenders will accept letters showing the person has legal authority to sell.
3. If no probate is open and all heirs agree to sell, consider a renunciation or disclaimer. Mississippi law allows heirs to disclaim an interest in property so the title can pass more cleanly; however disclaimers are legal acts that can have tax and inheritance consequences. Have each potential heir sign a written, notarized renunciation if the lender requires it. The renunciation should clearly identify the decedent, the property, and the interest being disclaimed.
4. Use a title company or closing attorney experienced with reverse mortgages. A closing agent familiar with HECMs can prepare required affidavits, collect renunciations, and coordinate payoff. In Mississippi, many closings are handled by attorneys; work with one who can also open probate if needed.
5. Do not sign away rights without understanding consequences. A renunciation is a legal statement. Do not sign a renunciation if you think you might want your share of the estate. Talk with a probate attorney before giving up rights.
6. If an heir refuses to renounce, open probate and obtain a court order. If you cannot get all potential claimants to renounce, you may need to open probate and ask the court to appoint an executor/administrator and to confirm who has authority to sell or to issue orders clearing title. A court order will usually satisfy the lender.
7. Coordinate timing and get a firm payoff quote. Reverse mortgage payoffs often have expiration dates. Get the lender27s payoff demand and coordinate the sale closing so there is enough time to satisfy the payoff, recording and title requirements.
8. Consider extensions or reinstatement options if needed. HUD rules allow certain timeframes and may permit an extension for heirs selling the home; talk with the lender and your attorney about any available time extensions.

Sample content that a simple renunciation might contain (for general orientation only)

“I, [name], being an heir of [decedent name], hereby renounce and disclaim all right, title, or interest I may have in the real property located at [address], and understand that by this renunciation I will not receive any share of the property.” The document should be dated, signed, and notarized. Do not use a template without legal review.

Common problems and solutions

• Problem: An heir cannot be located. Solution: File an appropriate affidavit of due diligence and consult your probate attorney about substituted service or a court order authorizing sale.
• Problem: Heir refuses to sign a renunciation. Solution: Open probate and ask the court to appoint an administrator/executor and issue an order allowing sale or quieting title.
• Problem: Lender won27t accept an out-of-state renunciation notarized elsewhere. Solution: Ask the lender exactly what notarization or apostille they require, or use an attorney/title company to prepare/verify the document.

Federal resources about reverse mortgages

HUD administers the HECM program and has guidance for heirs and servicers on payoff, timelines, and options. See HUD27s HECM pages: https://www.hud.gov/program_offices/housing/sfh/hecm. Consumer-facing guidance about reverse mortgages is available from the Consumer Financial Protection Bureau: https://www.consumerfinance.gov/owning-a-home/reverse-mortgages/.

Helpful hints

• Get the lender27s requirements in writing immediately so you avoid wasted trips to the title company or courthouse.
• Open probate quickly if there is no executor or if heirs disagree. Probate creates a clear legal pathway to sell.
• Use a Mississippi probate attorney familiar with HUD/HECM procedures; they can draft renunciations, open probate, and get the court orders lenders accept.
• Do not sign any renunciation or disclaimer without understanding what you are giving up. Ask for independent legal advice first.
• Keep multiple certified copies of letters testamentary/administration for the lender, title company, and county recorder.
• Get a written payoff demand early. Reverse mortgage payoffs can change daily because of interest accrual and fees.
• Confirm whether a surviving spouse is a “non-borrowing spouse” with special protections. If so, the lender may have obligations under HUD rules that affect timing and sale options.
• Consider hiring a real estate broker experienced with estate sales; they can price and market the property while legal clearance is obtained.