How to Sell a Parent’s Home When the Reverse Mortgage Lender Wants Renunciation Letters (North Dakota)

Short answer: First identify who legally controls the property (owner alive, owner incapacitated under a power of attorney, or owner deceased). Then provide the reverse mortgage servicer with the legally appropriate documents that prove your authority to sell — for example, a recorded power of attorney, letters testamentary/letters of administration from the probate court, a valid small‑estate affidavit, or an affidavit of heirship. If the servicer insists on renunciation letters from potential heirs, you can often avoid delays by getting a court order authorizing the sale or by having non‑owning family members sign properly drafted renunciations under oath. You should consider consulting a North Dakota probate or real estate attorney to choose the fastest, safest route.

Detailed answer — step‑by‑step under North Dakota law

Reverse mortgages (most commonly HUD’s Home Equity Conversion Mortgage, or HECM) become due and payable when the borrower permanently leaves the property, sells it, or dies. The loan servicer needs proof of who may act for the borrower or the borrower’s estate before it will authorize a payoff and permit a sale. In practice servicers often ask for “renunciation letters” from potential heirs or co‑owners to clear title and reduce the servicer’s perceived risk. Under North Dakota law, the lender must rely on proof of legal authority recognized by the courts — probate documents, powers of attorney, sworn affidavits — not informal family agreements.

1) Figure out the owner’s status

• If your father is alive: determine whether he can sign the sales documents. If he cannot, determine whether a valid, recorded durable power of attorney (POA) exists that authorizes real estate transactions. A recorded POA or court‑appointed guardianship/conservatorship gives clear authority to sell real estate.
• If your father is deceased: the borrower’s death generally triggers the loan’s maturity. The person who can sell the house is the executor named in the will (with letters testamentary) or the personal representative/administrator appointed by the probate court (with letters of administration). If no probate is opened, small‑estate procedures or an affidavit of heirship may be used in limited circumstances.

2) Provide the documents the servicer actually needs

Common acceptable documents include:

• Certified death certificate (if deceased).
• Recorded durable power of attorney that specifically authorizes sale of the home (if applicable).
• Letters testamentary or letters of administration issued by the North Dakota district court (probate) appointing an executor or administrator.
• A properly executed affidavit of heirship or small‑estate affidavit when applicable under North Dakota procedures.

North Dakota’s probate and estate statutes and procedures are found in the North Dakota Century Code, Title 30 (Probate and Related Matters): https://www.legis.nd.gov/cencode/t30. The North Dakota Courts website also provides self‑help resources about probate processes: https://www.ndcourts.gov/legal-resources/self-help.

3) Why servicers request renunciation letters

Servicers ask for renunciation letters (sometimes called disclaimers or waivers) from people who might claim an interest so the servicer can close the loan and accept a third‑party purchaser without fear of future claims. However, servicers cannot require heirs to renounce rights that they legally have unless doing so is supported by valid release language and executed under oath. If non‑owning family members are asked to sign, get the language reviewed — an improper renunciation can create future problems.

4) If people refuse to sign renunciations (or request seems unreasonable)

• Ask the servicer to put its requirements in writing and list alternate acceptable documents (for transparency).
• Open probate (or administrative probate) and obtain letters of administration or court permission to sell. A court order trumps an heir’s objection and usually satisfies any servicer. North Dakota district courts handle probate appointments.
• Use small‑estate procedures or an affidavit of heirship if the estate qualifies. These often allow a quicker sale without full probate; check the North Dakota statutes or ask the clerk of the district court whether your situation qualifies.
• If the servicer is a HECM servicer and refuses reasonable proof, you can contact HUD’s HECM servicing resources: https://www.hud.gov/program_offices/housing/sfh/hecm, and file complaints with HUD or the Consumer Financial Protection Bureau: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/.

5) Consider a court petition to sell the property free and clear

If family disputes or missing documentation block the sale, petition the district court for an order authorizing the sale of the property by the estate or administrator. A court order can force interested parties either to accept the sale or to assert their claims in court, which often clears title for the buyer and the lender.

6) Practical checklist

• Obtain a certified copy of the death certificate (if applicable).
• Locate the mortgage note and deed and a copy of the reverse mortgage closing documents.
• Ask the servicer in writing what exact documents will satisfy them (get a list).
• If a POA exists, record it with the county recorder if not already recorded.
• If probate is needed, file for appointment of personal representative with the district court and obtain letters testamentary/administration.
• If a small‑estate affidavit is possible, prepare it under North Dakota procedure and have it notarized and recorded if required.
• If heirs must renounce, have a properly drafted sworn renunciation or disclaimer prepared and notarized; consider having a lawyer prepare or review it.

Helpful hints

• Get everything in writing. Ask the servicer to list acceptable substitute documents rather than relying on verbal guidance.
• Don’t sign away rights without understanding them. If someone asks you to sign a renunciation, ask an attorney to review the language before you sign.
• Use the North Dakota district court probate route when family cooperation fails — a court order is the cleanest protection for title and for the buyer.
• If the reverse mortgage is a HECM, the servicer must follow HUD/HECM rules. HUD resources and the CFPB can help if a servicer acts unreasonably: HUD HECM, CFPB Reverse Mortgages.
• Contact a North Dakota probate or real estate attorney for complex disputes or when court filings are necessary. The North Dakota Bar Association can help with lawyer referrals: https://www.ndbar.org/.

Sample language for a limited renunciation (example only)

Below is an example of the kind of sworn statement some servicers accept. This is only an example and should be reviewed by an attorney before use:

“I, [Name], under penalty of perjury, state that I am the [relationship] of [decedent name] and that I do not claim any ownership or possessory interest in the real property located at [address]. I hereby renounce any right to occupy the property or to object to its sale by the personal representative/executor named in [court document or instrument], to the extent consistent with applicable law.”

Don’t use any template without legal review — an improperly drafted renunciation can unintentionally strip important rights.

Where to find help in North Dakota

• North Dakota Century Code (Probate and Related Matters): https://www.legis.nd.gov/cencode/t30
• North Dakota Courts — self‑help and probate resources: https://www.ndcourts.gov/legal-resources/self-help
• HUD HECM program information (for reverse mortgage servicing rules): https://www.hud.gov/program_offices/housing/sfh/hecm
• CFPB consumer tools for reverse mortgages: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/
• North Dakota Bar Association (lawyer referral): https://www.ndbar.org/

Disclaimer: This article provides general information about North Dakota procedures and common practical steps. It is not legal advice, does not create an attorney–client relationship, and may not apply to your specific situation. Consult a licensed North Dakota attorney before signing documents, filing court papers, or giving up any legal rights.