Detailed Answer
Short answer: you can usually sell the house, but you must cooperate with the reverse mortgage servicer, follow Rhode Island probate rules when necessary, and provide the documentation the lender needs (or get a court order). If the servicer keeps asking for “renunciation letters,” you should first identify exactly what type of renunciation they mean, then provide a legally acceptable substitute (usually court-issued letters testamentary/administration or an affidavit) or ask the court to resolve competing claims.
What is happening legally?
When a borrower on a Home Equity Conversion Mortgage (HECM, i.e., a federally insured reverse mortgage) dies or no longer occupies the home, the loan becomes due. The servicer has a legal interest in the property until the loan is repaid. The servicer often needs clear documentation about who can act for the estate, who has a claim to proceeds, or whether potential heirs are giving up claims—hence requests for “renunciation” or similar signed statements.
Two common meanings of “renunciation letters” in this context
- Renunciation of appointment as personal representative/executor: A person who was nominated as the estate representative may formally decline (renounce) the appointment so the court can appoint another person. Lenders sometimes want a clear record of who will administer the estate before completing a payoff or deed transfer.
- Renunciation of inheritance/claim to proceeds: Heirs or potential beneficiaries may be asked to sign a statement renouncing any interest in the sale proceeds so the servicer or title company can distribute funds without fear of later claims.
Practical steps to sell the house in Rhode Island
- Get the facts from the servicer in writing. Ask the lender to: (a) state precisely what documents they will accept; (b) explain whether they need renunciations, proof of estate administration (letters testamentary/letters of administration), or an affidavit of heirship; and (c) provide a written payoff statement with an expiration date. Written instructions prevent repeated or shifting demands.
- Locate important documents. Gather the death certificate, the deed, any will, mortgage paperwork, and any prior estate paperwork. If there is a valid will, the named executor usually gets letters testamentary from the probate court and can sign closing documents.
- Open probate if required. If the servicer will not accept private renunciation letters or an affidavit, you will likely need to open a probate estate and obtain court-issued letters (letters testamentary if there is a will, or letters of administration if there is not). The Rhode Island Probate Courts handle estate administration and can issue the official documents a lender and title company usually require. See Rhode Island Judiciary — Probate Court information: https://www.courts.ri.gov/Courts/ProbateFamily/Pages/default.aspx
- Use the court process to handle competing claims. If multiple heirs are refusing to sign renunciations or the servicer doubts who has authority, ask the probate court to determine who is authorized to act. A court order will almost always satisfy the lender and the title insurer.
- Offer accepted buyer and title company involvement. Have the buyer’s title company or closing attorney get involved early. Title companies often know what the servicer will accept and can coordinate payoff and distribution. They may request either (a) signed renunciation forms from heirs, (b) a signed and notarized affidavit of heirship, or (c) the court-issued letters mentioned above.
- If the sale price will not cover the loan balance: The servicer must approve any short sale or deed-in-lieu. For a HECM, the servicer follows HUD/FHA rules. Contact the servicer early to discuss a short sale, and be prepared to give them written authorization to negotiate with prospective buyers.
- Ask for alternatives to private renunciations. If relatives object to signing a renunciation, ask the lender whether it will accept: (a) a certified copy of letters testamentary/administration; (b) an affidavit of heirship notarized and witnessed according to Rhode Island practice; or (c) a court order transferring title or directing sale. Many lenders accept court documents over private waivers.
Relevant Rhode Island resources and federal rules
Rhode Island probate process and forms: Rhode Island Judiciary — Probate Court: https://www.courts.ri.gov/Courts/ProbateFamily/Pages/default.aspx
Rhode Island statutes and searchable laws: Rhode Island General Assembly — Statutes: https://www.rilegislature.gov/Statutes/
Federal rules and program information for HECM (reverse mortgages insured by FHA): U.S. Department of Housing and Urban Development — HECM program: https://www.hud.gov/program_offices/housing/sfh/hecm
Sample responses you can send the servicer
1) “Please confirm in writing exactly which form(s) you require: letters testamentary, letters of administration, a specific renunciation form, or a court order. If you accept court-issued letters, confirm that the certified court document and a death certificate will satisfy your requirement.”
2) “If you insist on renunciation letters from potential heirs, please provide a drafted template that we can present to relatives and the probate court so everyone signs a consistent form.”
Common pitfalls to avoid
- Don’t sign away rights without legal advice. A renunciation can be irreversible.
- Don’t rely on informal verbal agreements from the servicer—get written confirmation.
- Don’t assume the servicer will accept an unsigned family agreement. Lenders and title insurers want either court documents or properly executed, notarized affidavits.
If the servicer still stalls: Consider asking the probate court for an expedited hearing to appoint a personal representative or to rule on competing claims. A court order typically resolves lender hesitancy quickly.
When to get a lawyer
Hire a Rhode Island attorney if: (a) heirs refuse to cooperate or disagree about selling; (b) the servicer demands paperwork you cannot obtain without court action; (c) the loan balance exceeds the expected sale price and you need to negotiate a short sale; or (d) you want help obtaining letters from the probate court. A probate or real estate attorney can file the estate paperwork or a petition asking the court to appoint a representative and clear title.
Disclaimer: This article explains general legal concepts and Rhode Island procedures. It is educational only and not legal advice. For advice about your specific situation, consult a licensed attorney in Rhode Island.
Helpful Hints
- Ask the servicer for written, itemized requirements before doing anything.
- Obtain at least several certified copies of the death certificate early—lenders and title companies will need them.
- If a will exists, locate it and file it with the local probate court quickly; wills speed up issuance of letters testamentary.
- If you expect a short sale, get the servicer’s short-sale procedure and required forms in writing.
- Work with a local title company familiar with reverse mortgage payoffs and Rhode Island probate.
- If relatives are worried about signing renunciations, suggest a court order allocating proceeds—this protects everyone and satisfies the lender.
- Keep a written log of all communications with the servicer (who you spoke with, date, and what they said).
- Use the Rhode Island Judiciary resources for probate steps and forms: https://www.courts.ri.gov/Courts/ProbateFamily/Pages/default.aspx
- For HECM-specific servicer procedures, review HUD’s HECM guidance: https://www.hud.gov/program_offices/housing/sfh/hecm