How to sell a deceased homeowner’s house when the reverse mortgage lender asks for renunciation letters (Oregon)

Short answer: The lender is asking for renunciation letters to confirm who has the legal authority (or who waives a claim) so it can accept a payoff or release the property for sale. In Oregon, selling a home with a reverse mortgage after the borrower’s death usually requires either clear evidence of who can act for the estate (trustee, personal representative, surviving spouse or sole heir) or a court order. If heirs won’t sign the paperwork the lender needs, you will usually need to open probate (or seek a court order) or work with the trustee if the home was in a living trust.

Detailed answer

Why the lender requests renunciation letters

When a reverse mortgage (usually a Home Equity Conversion Mortgage, or HECM) borrower dies, the loan becomes due and payable. Before the lender accepts a payoff or allows a sale, the lender must be sure that the person offering to sell the property has the legal authority to do so and that no other person will later claim a right to the property. A renunciation letter is a signed statement from a person who might have a claim (for example, an heir or spouse) saying they waive their claim to act as personal representative or to object to the sale. The lender uses those letters to reduce the risk of a later dispute that would interfere with transferring title or collecting the payoff.

Common situations in Oregon and what they mean

• If the house was owned by the deceased borrower in joint tenancy with right of survivorship, the surviving joint tenant usually becomes owner automatically. Provide the lender a death certificate and recorded deed to show survivorship.
• If the house was in a revocable living trust, the successor trustee can usually sell the property without probate. Provide the lender a copy of the trust (or trustee certification) and the recorded deed showing trust ownership.
• If the deceased owned the property in sole name and left a will, the personal representative (executor) named in the will must be appointed by the probate court to sell the property (unless all heirs sign renunciations so no appointment is required).
• If there is no will (intestate), Oregon law controls who inherits and who may be appointed personal representative. The court will appoint a representative unless all interested persons sign a renunciation of the right to appointment and agree on who should act.

Oregon law and probate resources

Oregon’s probate rules govern who may administer an estate and how property passes after death. The Oregon Judicial Department has step-by-step probate resources; see the probate landing page for forms and explanations:

Oregon Judicial Department – Probate and Fiduciary Services

For statutes about intestate succession and estate administration, review the Oregon Revised Statutes (probate and succession chapters):

• ORS Chapter 111 — Intestate Succession
• ORS Chapter 114 — Administration of Decedents’ Estates

Practical steps to get the house sold when the lender asks for renunciations

1. Ask the lender for a written list of exactly which documents and forms it will accept and why. Lenders sometimes provide a checklist (death certificate, letters testamentary, trustee certification, heirship affidavit, specific renunciation forms).
2. Identify the title chain and the decedent’s estate planning documents: deed, deed type (joint tenancy, tenancy in common), will, trust, beneficiary deed if one exists, and the reverse mortgage note and deed of trust.
3. If the property is in a trust: provide the lender with the trust instrument or trustee certificate and the recorded deed showing the trust’s ownership. The trustee typically can sell the house without probate.
4. If probate is needed: file for appointment of a personal representative (executor) in the county where the real property lies. Once letters testamentary or letters of administration issue, provide those to the lender; the representative can sign the sale documents and deliver the payoff.
5. If multiple heirs exist and some will not sign renunciations: either (a) obtain written renunciations from the holdouts, (b) pursue a court appointment of a representative or a court order authorizing sale, or (c) negotiate with the lender about acceptable substitute documentation (e.g., court order or heirship affidavit). Often the quickest path is a short probate to obtain authority to sell.
6. If heirs intend to keep the home: heirs can choose to pay off the reverse mortgage (or refinance) to keep the property. Lenders will provide a payoff amount and time to complete repayment per HECM rules. Federal HECM rules and lender policies govern exact timelines; see HUD resources below.

If heirs refuse to sign renunciation letters

When heirs refuse, the usual remedies are:

• Open probate and ask the court to appoint a personal representative who can sell the property despite the objecting heirs;
• Ask the probate court for an order permitting sale over objection or for instructions;
• Work with a real estate attorney or probate attorney to mediate among heirs and the lender; or
• If there is a trustee (trust ownership), have the trustee enforce the trust terms and sell the property without probate.

Federal/regulatory background (HECM)

Most reverse mortgages are FHA-insured HECMs. HUD rules explain what happens after a borrower dies and the options available to heirs. Lenders follow HUD/HUD Handbook guidance for payoff, timelines, and documentation. Useful federal resources:

• HUD — HECM (reverse mortgage) program
• Consumer Financial Protection Bureau — If a family member dies and had a reverse mortgage

Helpful hints

• Get the lender’s checklist in writing. That prevents “moving goalposts.”
• Provide a certified copy of the death certificate early; lenders almost always require it.
• Check whether the property was owned by a trust or joint tenant — that may avoid probate entirely.
• If multiple heirs exist, try mediation or a written agreement where each heir either signs a renunciation or authorizes one person to act for the estate.
• When in doubt, consult a probate or real estate attorney experienced with reverse mortgages. They can prepare renunciations, open probate, or obtain court orders quickly.
• Don’t ignore lender deadlines. A HECM loan can eventually lead to foreclosure if a payoff or satisfactory arrangement is not made. Keep the lender informed while you pursue probate or court approval.
• Use local resources: the Oregon Judicial Department has probate guides and local court forms; the HUD and CFPB pages explain HECM rules and timelines.

Where to get help in Oregon

• Oregon Judicial Department — Probate information and local court contacts: https://www.courts.oregon.gov/programs/probate/Pages/default.aspx
• HUD HECM program information: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome
• Consumer Financial Protection Bureau — guidance for heirs: https://www.consumerfinance.gov/
• Consider contacting a local probate or real estate attorney. The Oregon State Bar has public resources and a lawyer referral service: https://www.osbar.org/

Disclaimer: This article explains general legal principles and resources under Oregon law and federal HECM rules. It is not legal advice. For advice about a specific estate or property, consult a licensed Oregon attorney. If you need help finding an attorney, use the Oregon State Bar referral resources linked above.