Detailed answer — how to sell the house when the reverse mortgage lender asks for renunciation letters

If your father had a reverse mortgage (usually a HUD-insured Home Equity Conversion Mortgage, or HECM) and he passed away, the loan becomes due and payable when he no longer occupies the property as his principal residence. The lender or loan servicer will want a clear legal representative or owner to handle payoff and sale. When the servicer asks for “renunciation letters,” they are usually trying to simplify the chain of title and confirm who will act on behalf of the estate or who is giving up a claim that could delay sale or conveyance.

Common reasons a lender asks for renunciation letters:

• An heir listed on the deed, will, or in intestacy claims they do not want to act as estate fiduciary (executor/administrator) or do not want rights to the property.
• A surviving spouse or co-borrower might be asked to renounce a right to the sale proceeds to allow a third-party purchaser or the estate representative to close.
• A trustee, alternate beneficiary, or co-owner needs to disclaim interest so the lender can accept payoff from the estate representative or buyer without fear of future claims.

What you should do — step by step (Connecticut practice):

1. Obtain certified copies of the death certificate. The servicer will require proof of death before issuing a payoff or discussing account details. Keep several certified copies for the mortgage company, probate court, and title company.
2. Contact the loan servicer immediately. Ask for a written payoff statement, a reinstatement/repayment worksheet (if applicable), and a clear list of documents they require to allow a sale or transfer. Get the contact name and a timeline in writing. For federal HECM basics, see HUD’s HECM page: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome.
3. Determine who can legally sell the house in Connecticut. A sale usually requires someone with authority to transfer title: a surviving co-owner with right of survivorship, the named executor under a will with Letters Testamentary, or an estate administrator with Letters of Administration if there is no will. If no one has authority yet, you must open a probate administration in the local Connecticut probate court. See the Connecticut Probate Court directory and procedures: https://www.jud.ct.gov/websites/probate/default.htm.
4. If the lender requests renunciation letters, clarify exactly what they mean and from whom. Ask the servicer to provide a sample renunciation form or explain the precise legal effect they want (for example, a formal “disclaimer” under state law vs. a simple written statement). A renunciation/disclaimer usually means a person formally gives up any future interest in the property or sale proceeds so the servicer can accept a sale or payoff without fear of future claims.
5. Use the proper Connecticut probate/disclaimer process. Connecticut allows heirs or potential beneficiaries to disclaim (renounce) an interest. A formal disclaimer may need to comply with the Connecticut Probate Court rules and the Internal Revenue Code (to avoid tax consequences); often disclaimers must be in writing, signed, and filed with the probate court. Contact the probate court where the decedent lived for instructions or consult a probate attorney. Connecticut probate resources: https://www.jud.ct.gov/websites/probate/Forms/.
6. If a party refuses to sign a renunciation, get legal authority to act on behalf of the estate. If an heir will not renounce, that person’s claim may block closing. Instead, the estate’s appointed fiduciary (executor or administrator) can request Letters that allow them to sell estate property. The probate court can appoint an administrator and grant authority to sell property free and clear of claims, subject to notice and potential creditor rights.
7. Obtain a title search and work with a title company or real estate attorney. The title company will identify any parties of interest who must sign or disclaim. They can often guide you through what the lender needs for a clean closing.
8. Get a payoff and proceed with sale or settlement. Once the lender accepts either a renunciation/disclaimer or recognizes your probate authority, obtain a current payoff quote and proceed with the listing and sale. Proceeds first repay the reverse mortgage; any surplus goes to the estate or beneficiaries per Connecticut succession rules.
9. If sale proceeds won’t cover the loan, discuss options immediately. The estate may be able to do a short sale with lender approval, or the lender may accept the property deed-in-lieu if that meets their loss-mitigation policies. For HUD-insured HECMs, servicers must follow HUD loss-mitigation guidance: https://www.hud.gov/program_offices/housing/sfh/hecm.
10. When to hire an attorney. Hire a Connecticut probate or real estate attorney if the lender’s requests are unclear, heirs dispute authority, renunciations are contested, or you face a potential shortfall. An attorney can file the right probate documents, draft a legally sufficient disclaimer, and negotiate with the servicer.

Practical examples of renunciation letters and alternatives:

• If an adult child listed on the deed signs a short written disclaimer in front of a notary and the probate court accepts it, the servicer may accept that as sufficient. But many servicers want evidence the disclaimer meets state probate rules.
• If a sibling refuses to sign any disclaimers, the estate’s administrator can ask the probate court for permission to sell and for the court to resolve competing claims.
• If the only person with title is a surviving spouse, the lender will often request proof of eligibility to remain in the home (if they want to assume the reverse mortgage) or proof that the spouse will cooperate with the sale.

Connecticut law references and resources (useful starting points):

• Connecticut Judicial Branch — Probate Court general information and forms: https://www.jud.ct.gov/websites/probate/default.htm
• Connecticut General Assembly — current statutes (searchable index of Connecticut law): https://www.cga.ct.gov/current/
• HUD — HECM (reverse mortgage) program information for servicers and heirs: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome
• Consumer Financial Protection Bureau — reverse mortgage basics: https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/

Timing: expect several weeks to a few months. Steps that take the longest: probate appointment (if required), obtaining formal disclaimers or Letters from probate, and lender payoff processing. Clear communication with the servicer and early engagement with probate will speed things up.

Helpful Hints — quick practical tips to make the sale smoother

• Get the servicer’s required document list in writing and follow it precisely. Ask them to identify the exact form of “renunciation” they accept.
• Keep copies of everything: death certificate, correspondence, payoff quotes, and any signed renunciations/disclaimers.
• Use a title company experienced with reverse mortgages and probate in Connecticut. They often know servicers’ preferences and the local probate process.
• If multiple heirs exist, get everyone’s position in writing. A single uncooperative heir can derail a sale unless the probate court grants authority to proceed.
• Consider short-sale documentation early if the house is likely worth less than the loan balance. HUD/HECM servicers sometimes have specific loss-mitigation paths.
• When in doubt, consult a Connecticut probate or real estate attorney before signing or sending legal documents like renunciations or disclaimers.