Detailed Answer

Short answer: When a borrower on a Home Equity Conversion Mortgage (HECM or “reverse mortgage”) dies, the loan is due. The lender will require clear proof that the person or persons selling the home have the legal authority to do so. Lenders commonly ask for “renunciation” or similar signed statements when the chain of title or the heirs’ authority is unclear. You can usually sell the house by either (A) providing recorded title documents (e.g., a survivorship deed or recorded deed transferring title), (B) presenting probate court papers showing you are the personal representative or successor, or (C) using a small‑estate or heirship procedure where state law allows. If the lender keeps requesting renunciation letters, it usually means they want every potential interest-holder to formally disclaim any ownership claims so the lender can accept payoff and clear title.

How this typically plays out in Nevada

Reverse mortgages insured by HUD/FHA become due when the last borrower or eligible non-borrowing spouse dies, the property is no longer the primary residence, or the borrower breaches other loan terms. HUD explains basic HECM rules at the U.S. Department of Housing and Urban Development: https://www.hud.gov/program_offices/housing/sfh/hecm.

In Nevada, the lender will want either:

• Recorded documentation showing title already passed to the person selling (for example, survivorship or joint tenancy deed recorded before the borrower’s death);
• Probate documents (letters testamentary, letters of administration, or a court order) showing a personal representative or administrator has authority to sell the property; or
• A statutory small‑estate or affidavit procedure that allows transfer of real property or collection of assets without full probate (only available when the estate qualifies under Nevada rules).

If those items are missing or do not cover everyone who might have an interest, lenders often ask for renunciation/disclaimer letters from other heirs or potential claimants. A renunciation letter is a notarized statement in which a person formally disclaims any right, title, or interest in the property (or in the estate). Lenders accept those letters because they reduce the risk of a later claim that might cloud the title.

Why the lender may keep asking for renunciation letters

• Incomplete title history: The deed or county records suggest multiple potential owners or transferees.
• Unknown or unlocated heirs: The lender wants a clear record that all heirs either consent to the sale or have renounced their claim.
• No probate action: If the estate did not go through probate and title did not pass by deed or survivorship, the lender may demand renunciations to avoid future disputes.
• Non-borrowing spouse protections: Lenders check whether a surviving spouse or co-occupant has protected status under HECM rules and Nevada law.

Practical steps you can take to move a sale forward

1. Gather key documents: death certificate, the reverse mortgage note and deed of trust, the current county deed/title report, and any wills or trusts. Give copies to the lender and the escrow/title company.
2. Check title form: Does the deed show joint tenancy with right of survivorship, community property with right of survivorship, or a transfer-on-death designation? If yes and it was recorded, title may have already passed and a renunciation may not be required.
3. Ask the lender precisely what they need: Request written instructions and a checklist (payoff statement, exact wording for renunciation, whether notarization or recording is required). Lenders sometimes use standardized language they will accept.
4. Consider probate or a court order: If heirs cannot all sign renunciations, petitioning the probate court for appointment as personal representative and a court order authorizing sale usually resolves lender concerns. Nevada courts offer self-help information for probate: https://selfhelp.nvcourts.gov/
5. Small-estate options: Nevada has procedures that allow transfer of estate assets without full probate under certain value thresholds. If the estate qualifies, an affidavit or simplified procedure may replace renunciation letters. Check local court rules or ask a probate clerk whether a small-estate affidavit will work.
6. Use escrow and title companies: Escrow/title professionals often know what documentation the lender will accept and can prepare renunciation templates and cure title issues before closing.
7. If heirs cannot be located: Lenders or escrow may require a court-supervised sale, or a title insurer may require additional steps (publication, bonding, or a court order) to clear title.
8. Bring in counsel when needed: If the lender’s demands are inconsistent, excessive, or impossible to satisfy, a Nevada attorney experienced in probate or real estate can communicate with the lender, prepare renunciations or petitions to the court, and help finalize the sale.

Example (hypothetical)

Mary’s father died owning a house subject to a HECM. The county deed shows only his name, and he left a will naming Mary the sole beneficiary, but the will has not been probated. The reverse mortgage lender demands renunciation letters from the deceased’s siblings. Mary has two options:

• Open probate, get letters testamentary appointing her personal representative, obtain a court order authorizing sale, provide that paperwork to the lender and escrow, and close; or
• If the estate qualifies under Nevada’s small-estate rules and the title company accepts the required affidavits, she can use the small-estate affidavit to transfer title, then use the proceeds to repay the lender.

When you need a lawyer

Talk to a Nevada probate or real estate attorney if:

• Multiple people claim an ownership interest and won’t sign renunciations;
• The lender’s demands are unclear or seem unreasonable;
• The estate has complicated assets, disputes, or the title company will not insure without a court order;
• You need help preparing petitions, affidavits, or recorded documents.

For lawyer referral, consider the Nevada State Bar or local county bar referral services. For general probate procedures and forms, see the Nevada Courts self-help site: https://selfhelp.nvcourts.gov/. For HECM program rules, see HUD: https://www.hud.gov/program_offices/housing/sfh/hecm.

Disclaimer

This article is for general information only and is not legal advice. Laws and court procedures change. For advice about your particular situation, consult a licensed Nevada attorney who handles probate and real estate matters.

Helpful Hints

• Start by getting several certified copies of the death certificate; lenders and the county recorder will require them.
• Ask the lender for a written, itemized payoff and a clear list of the documents they will accept instead of renunciation letters.
• Use a title company or experienced escrow officer early in the process; they will often flag missing pieces and suggest acceptable remedies.
• If you need renunciation letters, make them notarized, include identifying information (full legal name, address, relationship to the decedent), a clear statement disclaiming interest in the property, and attach a copy of the decedent’s death certificate and the deed or title report if possible.
• Keep all communications with the lender in writing. Save emails, certified mail receipts, and any checklists the lender provides.
• If heirs are uncooperative or unknown, a court order is often the most secure way to clear title and protect escrow and the buyer from future claims.