Quick answer
If your father’s home has a reverse mortgage, the loan becomes due when he dies. The servicer will require legal proof of who controls the property before they accept a sale or payoff. Lenders sometimes ask heirs or other potential successors to sign “renunciation” or affidavit letters to confirm they are not asserting ownership or claims that would block a sale. You can usually sell the house, but you may need to provide the servicer with a combination of: a death certificate, a payoff statement, title documents (deed or joint tenancy evidence), or a court-issued document (letters testamentary, letters of administration, or a court order authorizing sale). If heirs refuse to sign renunciations, the usual remedy is to get authority from the probate court to sell the property or to resolve competing claims through probate or quiet-title litigation.
How this works in Wisconsin — key legal framework
Most reverse mortgages on owner-occupied homes are Home Equity Conversion Mortgages (HECM) insured by HUD. When the last borrower dies, the lender may demand repayment. Federal rules govern HECM servicing and certain borrower protections; see HUD’s HECM information: https://www.hud.gov/program_offices/housing/sfh/hecm. Consumer guidance is also available from the CFPB: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/.
In Wisconsin, title transfers and probate procedures control who has legal authority to sell decedent-owned real estate. Wisconsin court self-help and probate forms can help you begin the process of obtaining letters authorizing the personal representative to act: https://www.wicourts.gov/services/selfhelp/index.htm. For statewide statutes and legal rules, consult the Wisconsin Statutes at: https://docs.legis.wisconsin.gov/statutes/.
Detailed answer — step-by-step
1. Confirm the loan status and who the servicer recognizes
– Obtain a copy of the mortgage note/deed of trust and any recent statements. Contact the reverse mortgage servicer and ask for a written payoff demand and a summary of what they need to close (title documents, renunciations, probate documents, etc.).
– Ask the servicer to explain exactly why they want renunciation letters. Often the servicer requests them to be sure no one else will object to a sale or claim a right to live in the home (for example, a non-borrowing spouse or a person listed on the deed).
2. Identify who has legal ownership or an interest
– Check the deed: is the property in your father’s name only, held as joint tenants, in a trust, or otherwise titled? If the deed names a surviving joint owner, that person may already own the property outside probate.
– If the property is in a trust, the successor trustee generally has authority to sell without probate. Have trust paperwork ready for the servicer.
3. If ownership is disputed or the servicer needs a clear chain of authority, use probate tools
– If the title is solely in your father’s name and there is no effective non-probate transfer, you will likely need court authority to sell. In Wisconsin that means opening an estate or obtaining letters testamentary (if there’s a will) or letters of administration (if there’s no will). The clerk of court or the self-help center can explain forms and filing steps: https://www.wicourts.gov/services/selfhelp/.
– Once a personal representative is appointed, the court-issued letters give the representative legal power to convey the property. Provide the servicer with a certified copy of the letters so the lender will accept a sale closing without extra affidavits.
4. Renunciation letters: what they are and when they help
– A renunciation (also called a disclaimer or affidavit of non-claim) is a signed statement from a potential heir or interest holder that they do not claim title or an interest that would block the sale. Lenders use renunciations to reduce the risk of later claims that could cloud title or delay a sale.
– Renunciations can be useful when: heirs agree among themselves; there is a clear heir who will permit the sale; or to allow a non-heir (like a surviving spouse who will not assert ownership) to cooperate with closing. They do not substitute for court authority if the law requires probate or the deed shows competing owners.
5. If heirs refuse to sign renunciations
– Don’t rely on informal cooperation. If someone refuses to sign, the practical route is to obtain a court order authorizing sale or to have the court resolve the dispute in probate or quiet-title proceedings. The court can order sale of estate property and distribute proceeds according to Wisconsin law.
– If the reverse mortgage balance exceeds the home’s likely sale price and the servicer will accept a short sale or deed-in-lieu, the servicer’s short-sale team may still proceed without every heir’s consent if the party with legal authority (personal representative or trustee) handles the transaction. Discuss short-sale options with the servicer.
6. How to get the sale done — documents to prepare for the lender and title company
- Death certificate (certified copy).
- Recorded deed and title search showing current owners.
- Will or trust documents (if applicable) and any recorded beneficiary deed or transfer-on-death instrument.
- Letters testamentary or letters of administration from the probate court (certified copy).
- Signed renunciations or affidavits from heirs if the servicer demands them and heirs agree.
- Payoff statement from the servicer (include a date for the payoff; HECM payoffs often have short effective windows).
- Signed agreement with buyer and standard closing documents used by the title company.
7. Timelines and deadlines
– Ask the servicer for a deadline to either repay the loan or produce satisfactory documents. HECM servicers typically provide a period during which heirs can sell or refinance. Missing deadlines can trigger start of foreclosure or the loss of the opportunity to sell to satisfy the loan on favorable terms.
8. Practical options if sale cannot close or heirs choose not to pay off the loan
– Allow the lender to proceed with non-judicial foreclosure or eviction under applicable rules. HECM loans are non-recourse and insured by FHA; if property is sold at foreclosure, FHA insurance will cover the lender’s loss beyond the property value.
– Negotiate with servicer about short sale or deed in lieu. Some servicers prefer to negotiate a short payoff instead of foreclosure but will require proof that the party negotiating has authority to sell.
9. When to get help from a Wisconsin attorney
– Hire a probate or real estate attorney if: heirs disagree about selling, the servicer refuses to accept ordinary documents, title is unclear, you need a court order to sell, or you face urgent deadlines. An attorney can file the necessary probate petitions or quiet-title actions and prepare the certified documents the servicer requires.
Helpful Hints
- Always get a written payoff or demand letter from the reverse mortgage servicer before setting a closing date.
- Provide the lender copies of recorded documents (deed, trust) and certified court letters to reduce the chance they’ll ask for extra affidavits later.
- If the house is in a trust, present the trust and successor trustee documentation — many trust sales avoid probate entirely.
- Keep everyone’s communications documented. If an heir refuses to sign a renunciation, get the refusal in writing or record the issue for the court record.
- If you expect the loan balance will exceed market value, discuss short sale options with the servicer early — FHA-insured HECM rules allow non-recourse treatment, but the servicer must approve a short sale process.
- Use the Wisconsin courts’ self-help resources for step-by-step probate paperwork and local filing instructions: https://www.wicourts.gov/services/selfhelp/index.htm.
- Consult HUD’s HECM resources and the CFPB reverse mortgage guide for borrower and successor rights: HUD HECM and CFPB guide.
Checklist — documents to gather
- Certified death certificate.
- Recorded deed and title report.
- Reverse mortgage account number and servicer contact info.
- Payoff / demand letter from servicer.
- Will or trust paperwork (if any).
- Court documents (letters testamentary/administration) if probate is open.
- Any signed renunciations or affidavits from heirs if available.
Where to get more help in Wisconsin
– Wisconsin courts self-help and probate forms: https://www.wicourts.gov/services/selfhelp/index.htm
– HUD HECM program information: https://www.hud.gov/program_offices/housing/sfh/hecm
– CFPB reverse mortgage consumer information: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/