Short answer: To sell a home in Arizona when a reverse mortgage (HECM or other) is outstanding and the lender is asking for renunciation letters, you must first identify who legally controls the property, confirm the lender’s exact legal basis for the requested documents, and then either provide an appropriate legal document (such as evidence of authority to sell) or obtain court-issued authority (probate letters or successor trustee certification). Never sign a blanket renunciation of ownership or rights without legal advice.

How this usually works in Arizona

Reverse mortgages (often FHA-insured Home Equity Conversion Mortgages, or HECMs) become due when the last surviving borrower dies or the property no longer qualifies as the primary residence. The lender must be repaid, typically from sale proceeds. Who can sell depends on how title is held:

• If the property is in a living trust, the successor trustee signs the deed and completes the sale.
• If the property was held jointly with rights of survivorship, the surviving co-owner may sell.
• If the decedent held sole title and no trust/transfer-on-death instrument exists, an Arizona probate may be required; the personal representative (executor/administrator) can sell.

Why lenders ask for “renunciation” letters

Lenders often want written confirmation that no one else claims an interest that could block or complicate payoff and sale. “Renunciation letters” may be their name for:

• Disclaimers by heirs that they are not asserting ownership or occupancy rights.
• Confirmations that a potential heir waives a statutory right (for example, a homestead or survivorship claim).
• Documents showing that a named person is not the personal representative or successor trustee.

However, the lender’s form may ask heirs to give up important rights. You should not sign documents that renounce legal rights or potential inheritance without understanding the consequences.

Step-by-step actions to move toward a sale

1. Get the death certificate and notify the lender in writing. Provide an official death certificate and ask the lender to provide a written list of exactly what documents they need and why (request specific statutory or title basis).
2. Obtain the title records and loan payoff demand. Order a title report or do a recorded-deed search to see who holds title. Ask the lender for a written payoff statement showing the amount needed to satisfy the reverse mortgage and any conditions for payoff. For HECMs, HUD rules explain heirs’ and servicers’ responsibilities: HUD HECM program.
3. Identify who has legal authority to sell the home. If the property is in a trust, request the successor trustee certification. If probate is required, the court issues letters testamentary or letters of administration to the personal representative. Arizona probate law and self-help resources are at the Arizona Legislature and Judicial Branch: Arizona Revised Statutes: Title 14 (Probate) and Arizona Judicial Branch — Probate self-help.
4. Ask the lender to accept the legally appropriate document instead of a renunciation. Common acceptable documents include: certified copy of letters testamentary/administration, successor trustee certificate, recorded affidavit of survivorship (if appropriate), or a court order authorizing sale. Request the lender’s sample forms in writing.
5. Don’t sign blanket renunciations. If the lender insists on a renunciation letter, have an attorney review the wording. A renunciation can permanently give up rights. Instead, you may be able to provide a narrow affidavit or court order that only addresses the lender’s legitimate title/repayment concerns.
6. If heirs cannot or will not sign a renunciation, pursue proper court authorization. If heirs dispute rights or won’t cooperate, the personal representative can ask the probate court for an order to sell property free and clear of claims. Arizona probate courts can also resolve competing claims to property. See Arizona Probate resources: azcourts.gov — Probate.
7. Close the sale through a title company or attorney. Work with a title company experienced with reverse mortgages. The title company will obtain payoff figures, handle lien releases, and distribute sale proceeds to pay the reverse mortgage.

Important legal protections and points specific to reverse mortgages

• HECMs are generally non-recourse loans; heirs are not personally liable beyond the property value. If the sale doesn’t cover the loan, FHA insurance may cover lender loss for a HUD-insured HECM. More on HECM program rules at HUD: HUD HECM.
• The lender must follow its servicing rules and federal HUD requirements for notifying heirs and offering time to sell. Ask the lender for a clear timeline and any loss-mitigation options they may offer for heirs.
• Arizona’s probate laws control transfer of ownership when the decedent held title alone. See Title 14 of the Arizona Revised Statutes for probate procedure: Arizona Revised Statutes – Title 14.

If the lender continues to demand renunciation letters

Take these steps:

• Request the lender to identify the specific legal authority that requires a renunciation (ask them to point to the statutory or contractual basis).
• Provide alternate legal proof of authority (probate letters, successor trustee certification, recorded deed, court order).
• Consult an Arizona probate or real estate attorney. If the lender’s demand is unreasonable or coercive, an attorney can negotiate or seek a court declaration authorizing the sale.
• If you suspect unfair or deceptive practices by a lender, you may contact the Arizona Department of Financial Institutions: dfi.az.gov.

Typical documents that will satisfy most lenders in Arizona

• Death certificate for the borrower(s).
• Recorded deed showing title (or recorded trust documents).
• Letters testamentary or letters of administration from the Superior Court (if probate opened).
• Successor Trustee Certification or copy of the trust and trustee’s acceptance (if property in trust).
• Affidavit of heirship or affidavit of survivorship when appropriate (use caution—get legal review).
• Court order authorizing sale (if parties dispute or lender will not accept other documents).

When to call an attorney

Talk to an Arizona probate or real estate attorney if any of the following apply:

• Multiple family members claim ownership or refuse to cooperate.
• The lender provides a renunciation form asking you to give up inheritance or homestead rights.
• The title includes unclear transfers, trusts, or old deeds.
• You need a court order to clear title or force a sale.

Final notes

Be proactive. Collect documents, get the lender’s requirements in writing, and obtain legal authority to sell the house through the correct Arizona legal process. A narrowly tailored legal document or a court order usually resolves situations where a lender asks for a renunciation letter that would otherwise waive heirs’ rights.

Disclaimer: This article is educational only and not legal advice. For advice about your specific situation, consult a licensed Arizona attorney who handles probate and real estate matters.

Helpful Hints

• Always request the lender put any document request in writing and explain the legal basis.
• Do not sign any document that renounces inheritance, homestead, or survivorship rights without independent legal advice.
• Gather key documents early: death certificate, recorded deed, mortgage note, loan servicing statements, trust documents (if any).
• If the loan is a HUD-insured HECM, confirm the lender’s servicing duties and timeline via HUD resources: HUD.
• Use an experienced title company or attorney to manage closing—title companies know payoffs for reverse mortgages and can coordinate lien releases.
• If relatives can’t agree, obtain a court order to protect the sale and clear title.
• For consumer protection or lender complaints in Arizona, consider contacting the Arizona Department of Financial Institutions: dfi.az.gov.