Detailed answer — what’s happening and the step‑by‑step path to sell the house

If your father had a reverse mortgage (most commonly a HUD‑insured Home Equity Conversion Mortgage, or HECM), the loan becomes due when he dies. The lender’s usual options are to allow the heirs to repay or sell the property to satisfy the loan, or to begin foreclosure if repayment or sale does not happen. Lenders often request “renunciation letters” when multiple possible heirs or interested parties exist and the lender needs clear written confirmation that the person trying to sell or sign payoff documents has authority to do so.

Why lenders ask for renunciation letters

Renunciation letters (sometimes called renunciations of interest or affidavits of non‑claim) are signed statements from other relatives or possible heirs saying they do not claim the property or they renounce their right to act so the named person can handle the sale or payoff. Lenders request them to reduce title risk and to ensure the party negotiating the payoff is truly authorized. If the borrower’s estate is in probate, lenders may instead want a court appointment (letters testamentary or letters of administration) naming the personal representative. If the title shows a surviving joint owner or a trust, the process differs.

Practical, step‑by‑step actions you should take in Montana

1. Get the death certificate and notify the servicer. Provide an official death certificate to the reverse mortgage servicer and ask for the current payoff statement and a written list of the documents they require to approve a sale.
2. Determine how title is held. Check the deed: is the home solely in your father’s name, jointly owned, or held in a trust? If it was in a living trust or joint tenancy with right of survivorship, probate may be unnecessary and title may pass directly to the co‑owner or trustee.
3. Ask the lender for a precise, written checklist. Request the servicer to itemize exactly what documents they need (e.g., payoff statement, death certificate, renunciation letters, affidavit of heirship, or court appointment). Having a clear list prevents repeated surprises.
4. Evaluate whether probate is required under Montana law. If property is only in the decedent’s name, probate or a small‑estate procedure may be necessary to transfer authority to sell. Montana has simplified procedures for smaller estates and statutory probate formalities; check Montana Judicial Branch self‑help resources for local probate forms and thresholds: Montana Judicial Branch — Probate & Guardianship. For full text of Montana statutes and codes, see the Montana Code Annotated index: Montana Code Annotated.
5. If all heirs agree, consider a renunciation or written consent. If every person who has a possible claim signs a notarized renunciation or written consent that the named person can sell and receive proceeds, many servicers will accept that instead of waiting for probate. Make sure the servicer approves the exact form and notarization requirements before gathering signatures.
6. If everyone doesn’t agree, you may need a court appointment. If one or more heirs refuse to sign renunciations, the lender will likely require court‑issued authority (letters testamentary or administration). That means opening probate and being formally appointed as personal representative in Montana probate court.
7. Obtain title clearance and list the home for sale. Once the servicer has accepted the documentation and provided a payoff statement, you can list and sell the home. The sale proceeds normally repay the reverse mortgage at closing; any remainder is distributed according to the will, trust, or Montana intestacy rules.

Key documents the lender commonly wants

• Certified death certificate
• Payoff demand statement with an expiration date
• Recorded deed or title report
• Renunciation letters, affidavits of heirship, or written releases from other heirs (notarized)
• Letters testamentary or letters of administration from Montana probate court, when probate is opened
• Seller identification and closing instructions

Relevant federal resources for reverse mortgages

HECM reverse mortgages are governed by federal HUD/FHA rules as well as the servicer’s requirements. Helpful federal resources include HUD’s HECM overview and servicer guidance: HUD — Home Equity Conversion Mortgages (HECM), and Consumer Financial Protection Bureau guidance: CFPB — What happens after a HECM borrower dies.

When the lender’s requests seem excessive or unclear

Servicers sometimes request multiple letters because they lack complete information about heirs or title, or because their internal policies are conservative. Insist on a written, itemized checklist from the servicer. If the servicer’s demands appear inconsistent with what the county recorder or title company says is required to convey good title, consider getting a short written opinion from a local real estate attorney or title company to present to the servicer.

When you need a Montana attorney

Get legal help if any of these apply:

• Heirs disagree about selling or renouncing interest
• Probate is contested or there are multiple potential personal representatives
• The servicer will not accept reasonable documentation
• Title defects, liens, or tax problems exist

A Montana probate or real estate attorney can explain whether a renunciation will be effective, prepare affidavits or deeds, open probate if needed, and advise how Montana succession law affects sale proceeds.

Helpful Hints — quick checklist to move the sale forward

• Order multiple official death certificates right away—lenders and title companies will ask for originals or certified copies.
• Ask the servicer for a written payoff quote and a precise list of required documents before you gather signatures.
• Verify how title was held: trust, joint tenancy, or sole ownership changes the path to sale.
• If everyone eligible to inherit signs a notarized renunciation or consent form, the servicer often accepts that instead of a probate appointment—confirm the exact wording the servicer requires.
• Use a local title company to run a title report early so you understand any other liens or encumbrances.
• Keep a written record (emails/letters) of every communication with the loan servicer and record who they spoke with and when.
• If the estate qualifies as a “small estate” in Montana, a simplified procedure may allow transfer without full probate—check Montana court self‑help resources or consult an attorney.
• Do not sign or accept unsigned renunciations; signatures generally must be notarized. Do not allow anyone to forge a name—this leads to serious legal problems.
• If the lender delays unreasonably, ask for escalation to the lender’s loss mitigation or legal department and consider writing a short formal demand for payoff instructions.
• When in doubt, hire a Montana lawyer experienced in probate or reverse‑mortgage/HECM matters to prepare correct documents and negotiate with the servicer.

For Montana statutory language and probate forms, start at the Montana Judicial Branch: https://www.montanacourts.org, and for Montana statute references see the Montana Code Annotated index: https://leg.mt.gov/bills/mca_toc/.

For federal rules and general borrower/heir guidance on HECM reverse mortgages, see HUD’s HECM page: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome and the CFPB summary: https://www.consumerfinance.gov/ask-cfpb/what-happens-after-the-home-equity-conversion-mortgage-hecm-borrower-dies-en-1794/.

Final note: Each situation is fact‑specific. The fastest path to sell typically requires the lender’s written payoff, clear title or proper probate/appointment paperwork, and either signed renunciations from all other heirs or a court appointment. If the lender keeps circling back for additional renunciations, get their exact written checklist and consider involving a Montana probate or real estate attorney to obtain a definitive resolution.