Can I sell my father’s Ohio home when the reverse mortgage lender asks for renunciation letters?

Short answer: Yes — in most cases you can sell the house, but you will need to resolve the reverse mortgage first. Lenders often ask for renunciation letters or similar documents to confirm who has legal authority to act for the estate or to avoid a probate administration. You have several practical paths: provide the paperwork the lender requires, open a probate or estate administration so someone is authorized to sell, negotiate a sale with the lender (including payoff, deed-in-lieu, or short sale), or get a court order authorizing sale.

Detailed answer — what’s happening and what you can do

Why the lender asks for renunciation letters. When the borrower on a Home Equity Conversion Mortgage (HECM, the federal reverse mortgage program) dies or becomes incompetent, the loan becomes due and payable. Lenders must be sure they are dealing with the person who has legal authority to sell the property or settle the loan. A “renunciation” is one way heirs or potential personal representatives formally state they will not serve as estate fiduciary, or waive a particular right, so the lender can proceed without having to wait for the probate court to appoint someone.

Lenders ask for this because they want clear documentation that the person signing sale documents or receiving proceeds is legally authorized. Without that, the lender risks paying proceeds to the wrong person or facing competing claims from other heirs.

Important Ohio and federal background to understand:

• Reverse mortgages under the federal HECM program are regulated by HUD. HUD sets rules for what happens when a borrower dies and for lender procedures. See HUD’s HECM information: HUD — HECM (reverse mortgage) program.
• Ohio probate and intestacy rules control who may act for a deceased homeowner and who receives any surplus after a mortgage payoff. For an overview of Ohio descent and distribution rules see Ohio Revised Code Chapter 2113: Ohio Rev. Code Chapter 2113 (Descent & Distribution). If a probate administration is necessary, the local probate court will apply the Ohio statutes and rules.

Practical steps to sell the house

1. Get the lender’s written payoff and written instructions. Ask the reverse mortgage lender for a written payoff statement and a list of exactly which documents they need to allow a sale or payoff (e.g., death certificate, renunciation letters, affidavit of heirship, court letters appointing an executor/administrator).
2. Provide essential documents quickly. Usually the lender will want a certified death certificate and proof of who has legal authority. If the estate has a will and an executor named, present the will and probate court letters. If the estate has not been opened in probate, the lender may accept a renunciation letter from beneficiaries, an affidavit of heirship, or require you to open a probate estate.
3. Decide whether to open probate (or estate administration). If heirs disagree, or if the lender refuses to accept affidavits/renunciations, opening a probate administration and having the probate court issue letters of authority to an executor or administrator will give someone clear legal power to sign sale documents. In Ohio, a probate court issues official letters to personal representatives; those letters are typically what title companies and lenders rely on.
4. Negotiate the payoff or sale with the lender. Options include: (a) selling the home and using proceeds to pay the reverse mortgage; (b) arranging a deed-in-lieu of foreclosure if the lender accepts; (c) pursuing a short sale if the loan balance exceeds market value and the lender agrees; or (d) paying off the loan from other funds. HECM rules generally limit lender claims against heirs (HECMs are typically non-recourse once properly handled), but confirm details with the lender.
5. Use a title company or closing attorney experienced with reverse mortgages. Closing a sale with a reverse mortgage requires accurate payoff handling and often extra paperwork. Choose a closing agent with HECM experience and tell them the lender’s requirements up front.
6. If the lender insists on renunciations you are uncomfortable signing, get legal advice or a court order. A renunciation can waive important rights. If you are unsure, ask a probate or real estate attorney to review documents before you sign. If the lender still refuses to accept alternative proof, a probate court order authorizing sale often resolves the issue.

Typical timeline and lender timeframes

Lender notices after a borrower’s death typically set deadlines for responding and resolving the loan. HUD guidance and industry practice provide limited windows to sell or cure the loan and lenders sometimes permit extensions if you request them promptly and can show a plan. Ask the lender in writing for any extension, and keep all communications in writing.

What happens to net sale proceeds and what heirs should expect

Proceeds from a sale first pay the reverse mortgage payoff, closing costs, and any taxes or liens. Any surplus after paying valid liens and costs belongs to the estate or the residuary beneficiaries under Ohio law. If the sale does not cover the reverse mortgage, HECMs are generally limited-recourse loans — the lender normally cannot seek additional repayment from heirs beyond the property value, provided the servicer followed the rules — but obtain confirmation from the lender in writing.

When to get a lawyer or other help

Consider speaking with a probate or real estate attorney in Ohio if:

• Heirs disagree about selling the property.
• The lender won’t accept affidavits or renunciations you can safely provide.
• The lender threatens foreclosure and you need more time to sell.
• Title problems, multiple mortgages, or disputes about ownership exist.

Disclaimer

This article is for general informational purposes only and does not provide legal advice. It describes common practices and Ohio law background but is not a substitute for individualized legal counsel. Consult a licensed Ohio attorney for advice tailored to your situation.

Helpful Hints

• Start by requesting the lender’s written payoff and exact document list — that tells you what they will accept.
• Get multiple certified copies of the death certificate; lenders and title companies will request originals or certified copies.
• Do not sign a renunciation or any document that gives up rights without understanding its effect — ask an attorney to review it.
• If the estate is small or all heirs agree, an affidavit of heirship or mutual renunciations may avoid probate; confirm the lender accepts this in writing.
• Keep written records of every call and email with the lender — date, time, who you spoke with, and what they said.
• Use a title company or closing attorney experienced with HECMs to avoid payoff mistakes at closing.
• If you need more time, request it immediately and document the lender’s response in writing.
• Ask the lender whether the HECM is non-recourse and request written confirmation about how any deficiency (if one exists) will be handled.
• Check your county probate court’s self-help or clerk’s office for basic forms and instructions if you consider opening an estate administration.

If you would like, I can outline a checklist of the documents to request from the lender, or draft a sample letter to the lender asking for a payoff statement and clarifying what documents they will accept to authorize a sale.