How to Sell a Home Subject to a Reverse Mortgage in Wyoming When the Lender Asks for Renunciation Letters

Disclaimer: This is general information and not legal advice. It explains common steps under Wyoming law and federal HECM rules. For advice about your specific situation, consult a licensed Wyoming attorney experienced in probate, real estate, or elder law.

Quick overview

If a homeowner with a reverse mortgage dies, the loan becomes due. The lender will want clear documentation showing who has authority to act for the property (executor, administrator, or trustee) before accepting payoff or allowing a sale. Lenders sometimes ask heirs to sign “renunciation” or “disclaimer” letters so one person can proceed. Whether you should sign such a letter, or instead open probate, rely on a trust, or use a small‑estate procedure, depends on Wyoming probate rules and the estate facts.

Detailed answer — steps to take in Wyoming

1. Identify how title to the house passes

• If the house is owned in a living trust, the successor trustee normally has authority to sell. Provide the lender with the death certificate, the trust, and the trustee’s documents.
• If there is a will, or if the deceased died intestate (without a will), the estate typically must be administered through probate unless a Wyoming small‑estate procedure applies. The personal representative (executor/administrator) is the person with authority to sell real property for the estate.
• If title named joint owners with rights of survivorship, the surviving owner usually takes title outside probate; provide the deed and death certificate.

2. Understand what a renunciation (or disclaimer) letter is

A renunciation or disclaimer is a signed statement by an heir or nominated personal representative that they decline to serve as personal representative or that they disclaim any interest in the property. Lenders request these to be sure that the person attempting to close the sale really has authority and that no one else will later assert competing rights.

3. Don’t sign renunciations lightly

Signing a renunciation can affect inheritance rights and your ability to challenge the sale or claim estate property later. If a lender asks you to renounce, consider these safer alternatives before signing:

• Ask the lender to accept a court order appointing the personal representative or a certified copy of Letters Testamentary/Letters of Administration.
• If there is a trust, provide the successor trustee’s certificate and trust pages that show successor authority.
• Use Wyoming probate procedures (appoint a personal representative) so sale authority is clear on the public record.

4. If the estate is small, check Wyoming small‑estate procedures

Wyoming law allows simplified procedures in some smaller estates so property can transfer without full probate. If the estate qualifies, a small‑estate affidavit or similar document may give a buyer or lender the proof they need. Look up Wyoming probate rules and small‑estate options or ask a probate attorney. See Wyoming statutes and court self‑help resources for probate procedures: Wyoming Statutes (Probate Titles) and the Wyoming Judicial Branch forms and guidance pages (Wyoming Judicial Branch).

5. Communicate with the reverse mortgage servicer and get a payoff quote

• Provide the servicer with a death certificate, contact information, and the name/contact for the person handling the estate (trustee, personal representative, or agent under power of attorney if still valid).
• Request a written payoff/demand statement with an expiration date. This tells you the balance due to close a sale.
• Ask what documentation they will accept to release the lien at closing (court order, letters, trustee certificate, or signed renunciations).

6. Selling the house — typical paths

• If you are the successor trustee or personal representative: obtain the required authority (trust docs or letters) and present those to the lender. Then list the home and close escrow, using proceeds to pay off the reverse mortgage.
• If heirs own the property outright (rare): the lender will still require payoff or lien release. They may request signed statements from all owners disclaiming further claim or authorizing the sale.
• If heirs want to keep the house: they can repay the lesser of the loan balance or 95% of the appraised value under FHA HECM rules, or refinance into a regular mortgage if they qualify.
• If heirs cannot pay, they may arrange a sale or allow the lender to foreclose. Communicate with the servicer early to avoid avoidable delays or foreclosure procedures.

7. If the lender insists on renunciations, get legal review

Before signing renunciations, ask a Wyoming attorney to review them. A lawyer can explain whether signing is safe, or whether a short court process to appoint an administrator or obtain a formal renunciation that complies with Wyoming law is better. Properly worded, a renunciation can be limited to declining appointment as personal representative while preserving inheritance rights; a lawyer can draft/approve that language.

How Wyoming law and federal HECM rules interact

Reverse mortgages insured by HUD (HECMs) are governed by federal HECM rules and lender servicing policies in addition to Wyoming property and probate law. The lender’s servicer will follow HUD guidance on borrower death, payoff, and sale timelines. See HUD’s HECM overview for heirs: HUD HECM program. The Consumer Financial Protection Bureau also provides plain‑language guidance for heirs dealing with reverse mortgages: CFPB — Reverse Mortgage Guide for Families.

Helpful hints — practical checklist

1. Gather documents: death certificate, deed, mortgage statement, loan number, will/trust, any deed showing joint tenancy.
2. Contact the reverse mortgage servicer: ask for specific list of acceptable documents and a written payoff statement.
3. If a trust exists, provide a trustee certificate and successor appointment pages; typically this avoids probate.
4. If no trust and estate administration is required, consider opening probate and obtaining Letters so you can sell with court authority.
5. If the estate may qualify for a small‑estate procedure, verify Wyoming limits and forms with the courts or an attorney (Wyoming Statutes (Probate Titles)).
6. Do not sign blanket renunciations or disclaimers without a lawyer’s review. Ask for limited language if needed.
7. Get a current appraisal if you expect to repay under the HECM lesser‑of rules or to list the house for sale.
8. Consider hiring a real estate agent who has experience with probate or reverse‑mortgage sales.
9. Keep records of all communications with the servicer: dates, names, and copies of emailed documents.

When to hire a Wyoming attorney

Hire a Wyoming attorney if any of the following apply:

• Multiple heirs dispute who can act or how proceeds should be divided.
• The lender insists on renunciations or unusual documentation you don’t understand.
• You need to open probate, request court authority to sell, or need help with trust administration.
• Time is short and you need a clear, enforceable document for the closing.

Resources

• HUD — HECM (reverse mortgage) program and servicer guidance: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome
• Consumer Financial Protection Bureau — reverse mortgage guide for families: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/
• Wyoming statutes and probate code (general): https://wyoleg.gov/Statutes
• Wyoming Judicial Branch — court forms and probate information: https://www.courts.state.wy.us/

Clear documentation of who can sign, a written payoff demand from the servicer, and timely communication will typically allow a sale to close. When in doubt about renunciations or court filings, consult a Wyoming attorney to protect your rights and to make sure the sale complies with state probate requirements and federal HECM rules.