Quick answer

If your father had a reverse mortgage, the loan becomes due when he died. The lender (loan servicer) will want clear proof of who can act for the estate and who has or does not have an ownership interest. Renunciation letters are one way servicers try to get that clarity. In Alabama you can satisfy the lender either by providing what they ask for (properly signed renunciations or affidavits), or—often more reliably—by opening probate (or getting a court order) so a personal representative or executor can produce certified letters of appointment and sign for the estate. If heirs refuse to sign renunciations, ask the probate court for authority to sell or for an order clearing title. Always get a written payoff statement from the servicer and confirm HECM/FHA rules with HUD guidance.

Detailed answer — step‑by‑step under Alabama law

1. Confirm the loan type and gather basic documents

First, confirm whether the reverse mortgage was a federally insured HECM (Home Equity Conversion Mortgage) or a private reverse mortgage. HECMs are governed by HUD program rules; those rules and mortgage servicers’ procedures drive the payoff and options for heirs. Helpful resources: HUD’s HECM overview (https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome) and the CFPB reverse mortgage page (https://www.consumerfinance.gov/owning-a-home/reverse-mortgages/).

2. Contact the loan servicer and get a written payoff statement

Contact the reverse mortgage servicer, tell them of the borrower’s death, and ask for the current payoff amount and the specific documents they require to complete a sale. Lenders typically require:

• Death certificate
• Proof of authority to act for the estate (letters testamentary or letters of administration)
• Recordable documents that clear title (renunciations, disclaimers, indemnities, or a court order)

Get the payoff letter in writing and a statement of how long the payoff quote remains valid.

3. Why a servicer asks for renunciation letters

A renunciation letter is a signed statement by a person who might have an interest in the property (for example, an adult child or surviving spouse) saying they give up a claim to the property so the lender can accept a sale or payoff without fear of future claims. Servicers may request them when title records or family structure are unclear, or when someone listed on title is not participating in the sale.

4. Two common ways to satisfy the servicer

Option A — Family signs what the servicer wants: If everyone who might have a claim is willing, have each person sign the renunciation or disclaimer exactly as the servicer requires. Have signatures notarized and provide any requested ID.

Option B — Open probate and get court‑issued authority: If family members will not sign, or the servicer won’t accept private renunciations, open probate where the decedent lived or where the property is located. In Alabama, the probate court appoints a personal representative (executor/administrator) and issues certified letters of appointment. The representative can usually sign closing documents and can ask the court for an order authorizing sale or for instructions if heirs disagree. The probate path generally clears title in a way lenders accept.

5. What to do if heirs refuse to sign renunciations

If a living heir declines to sign a renunciation and the servicer insists on it, consider:

• Ask the servicer exactly what language and notarization they require. Sometimes a narrowly tailored affidavit suffices.
• Open probate and ask the probate court to authorize the sale over the objection of a nonconsenting heir; a court order can replace private renunciations.
• If sale proceeds won’t cover the loan, explore a short sale with the servicer (HECM servicers will consider options when property value is less than the HECM balance).

6. HECM (FHA) considerations and non‑recourse protection

If the loan is a HUD HECM, federal program rules apply. FHA‑insured HECMs generally limit borrower or heirs’ personal liability to the property value at sale (non‑recourse), but the loan must be repaid. HUD’s HECM materials explain options for heirs and servicer responsibilities: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome

7. Practical checklist for an Alabama sale when the servicer asks for renunciations

1. Obtain several certified death certificates.
2. Contact the servicer; get written payoff, required documents, and deadlines.
3. Locate the will and title records to identify named heirs and owners.
4. If there is a will or multiple heirs, open probate in the county probate court to get letters of appointment for the representative.
5. Provide the servicer with certified letters of appointment and recorded documents. If they still want renunciations, either get signed notarized renunciations or ask the court for an order replacing them.
6. Complete the sale; use the payoff statement at closing to pay the lender and record the release of the reverse mortgage lien.

8. Alabama‑specific procedural notes

Probate and authority to act are controlled by Alabama’s probate process. For general guidance on Alabama probate and administration, consult the Alabama Code (Title dealing with probate and wills) or contact the local probate court where the decedent lived. Alabama’s official legislative code site (Title table of contents) is here: https://alisondb.legislature.state.al.us/acas/codeofalabama/1975/coatoc.htm. For practical help locating the right probate office, see the Alabama Judicial System: https://judicial.alabama.gov/.

9. When to get a court order

Get a probate court order when:

• Heirs disagree and won’t sign renunciations.
• Title is unclear and the servicer won’t accept affidavits.
• You need the court to authorize a sale of estate property.

A court order is the most secure way to clear title and protect the personal representative from later claims.

10. If the servicer keeps stonewalling

Ask the servicer in writing to identify the exact legal authority for their document requirement. If they cite a company policy rather than a legal obligation, an Alabama probate court order will usually be persuasive. If the servicer unreasonably delays, you can raise the issue with HUD (for an FHA/HECM loan) or consider contacting a local attorney for a letter to the servicer or to file a motion in probate court.

Helpful hints

• Get everything in writing. Always request a written payoff and written list of required documents from the loan servicer.
• Collect multiple certified death certificates — lenders and county recorders typically ask for certified copies.
• If possible, use the probate process early — letters of appointment are widely accepted by lenders and title companies.
• When asking heirs to sign renunciations, have renunciations reviewed by the probate court clerk or an attorney to make sure they meet local recording and notarization requirements.
• Be aware of timeline limits in the payoff quote; sales and closings can take time and lenders usually set expiration dates for payoff amounts.
• If the reverse mortgage is an FHA/HECM loan, the loan servicer must follow HUD rules — you can also contact HUD’s HECM servicer complaint route for guidance: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome.
• Consider hiring a local Alabama attorney experienced with probate and reverse mortgages if heirs dispute the sale or the servicer refuses reasonable documentation.