Detailed Answer

What the lender means by “renunciation letters”

Lenders use the term “renunciation” to describe a written statement from a person who might otherwise claim a right to be the estate’s personal representative, saying they give up (renounce) that right so another person can apply for administration or handle the sale without contested probate. Lenders request this because they want a single, court-recognized authority (or unanimous heirs’ agreement) to accept payoff funds and release the mortgage lien.

Why the lender is asking for them

• Reverse mortgages (often FHA-insured Home Equity Conversion Mortgages, or HECMs) become due when the last borrower dies. The lender must be sure it is dealing with whoever has legal authority to sell or convey the property before accepting payoff and reconveying the mortgage.
• If title is not automatically held by a surviving joint owner (right of survivorship) and the estate has multiple potential administrators or heirs, the lender asks for renunciations to avoid distributing payoff funds to the wrong person or facing a competing claim later.

Common Georgia pathways to resolve this

1. Confirm how the property is titled. If the property was held jointly with right of survivorship (for example, joint tenancy or tenancy by the entirety where applicable), the surviving joint owner may already have full ownership and can sign a deed. Provide the lender a death certificate and a recorded copy of the deed showing survivorship.
2. If the decedent left a will: The person named as executor should open probate to obtain letters testamentary from the probate court. Those letters are the clearest proof of authority for selling the house. Contact your local probate court for steps and required documents. Georgia probate and court resources are available through the Georgia Courts website: https://www.georgiacourts.gov/
3. If there is no will (intestate): Any heir can apply to be appointed administrator by the probate court and receive letters of administration. The appointed administrator can sell the property subject to court and title requirements.
4. Small-estate or affidavit options (limited situations): Some states allow an affidavit procedure for low-value estates or specific assets, letting heirs transfer property without full probate. Whether this works for a home with a reverse mortgage depends on Georgia rules and the lender’s policy. Check with the probate court and the lender. Georgia Probate Court information: https://www.georgiacourts.gov/
5. All heirs sign renunciation/consent letters. If all heirs agree, they can sign the renunciations or consents the lender requests. This is often the fastest route when heirs are cooperative. The lender will still want proper documentation (death certificate, ID, recorded deed history, and often a payoff demand).
6. Court order authorizing sale. If heirs disagree or the lender won’t accept renunciations alone, a probate court can issue an order authorizing the sale. Present that order to the lender with the probate letters.

Important points about power of attorney and authority

• A power of attorney ends at the principal’s death. A surviving agent cannot use a POA to sell the decedent’s home after death. You will need probate letters or a recorded conveyance (e.g., survivorship deed).
• Heirs’ agreements (signed renunciations/consents) are often a lender policy convenience, not necessarily a substitute for court-issued letters in all situations. A lender may accept them if the lender’s counsel is satisfied the risk is low.

What the lender will typically require to close a sale

• Certified copy of the death certificate.
• Recorded deed showing current title, or letters testamentary/letters of administration from probate court.
• Payoff statement from the reverse mortgage servicer (get a written payoff quote with expiration date).
• Signed renunciations/consents from other heirs (if the lender requests them and heirs agree), or a court order authorizing the sale.
• Proof that any homestead or survivorship rights have been resolved.

Practical checklist to move forward (step-by-step)

1. Order several certified copies of the death certificate from the Georgia Department of Public Health or the county vital records office.
2. Examine the recorded deed to determine ownership type (joint tenancy, tenancy in common, solely in the decedent’s name).
3. Call the reverse mortgage servicer and ask for a written payoff demand and an exact list of documents they need to release the mortgage on sale.
4. If all heirs agree, ask the servicer whether heir renunciations and a signed deed can satisfy their requirements. If they agree, use their template if provided.
5. If the servicer insists on probate letters, contact the local probate court to open probate (with will) or administration (without will). Obtain letters testamentary/administration and provide them to the lender.
6. If there’s resistance from heirs or a complex ownership issue, consult a Georgia probate or real estate attorney to petition the court for an order authorizing sale or to prepare necessary renunciations/affidavits.

Costs and timeline

Probate timelines and costs vary. Simple uncontested administrations can take a few weeks to a few months. Probate with disputes can take much longer. Expect court filing fees and possibly attorney fees; weigh those costs against the house’s value. If the lender needs a payoff before issuing a release, ask for a firm payoff deadline and allow time for closing and recording the deed.

If the lender won’t accept renunciations

Some servicers have conservative policies and will not accept informal renunciations without court-issued letters. In that case, the practical solution is to open probate or obtain a court order. If the lender appears unreasonable, consider asking for a written explanation and consult a Georgia attorney to write a demand or file a motion in probate court.

Federal resources about reverse mortgages

Reverse mortgages insured by HUD have special rules and consumer protections. Useful federal resources include HUD’s HECM pages and the Consumer Financial Protection Bureau’s reverse mortgage guides:

• HUD — HECM (Reverse Mortgages)
• CFPB — Reverse Mortgages

Georgia-specific court information

For local probate procedures and contact information for probate courts, start with the Georgia Courts website: https://www.georgiacourts.gov/.

When to hire an attorney

• If heirs disagree about selling the home.
• If the lender refuses reasonable documentation or demands unusual conditions.
• If you need to open probate and want a faster or less error-prone process.
• If title issues, liens, or complex family situations exist.

Sample communications to the servicer (what to ask)

When you call or write the servicer, ask for:

• A written payoff statement with an expiration date.
• An itemized list of required documents to release the mortgage on sale (include exact name and format for renunciation, if they require one).
• A written statement of whether they will accept recorded deeds showing survivorship or a recorded affidavit of heirship instead of probate letters.

Bottom line

The lender’s request for renunciation letters is mainly a risk-avoidance step. If heirs cooperate, signed renunciations plus death certificate and title documents may close the sale quickly. If not, probate or a court order that produces letters giving a personal representative authority to sell will resolve the issue. Talk to the lender to get their exact list, keep records of all communications, and consider a consultation with a Georgia probate/real estate attorney if anything is contested or unclear.

Disclaimer: This article explains general information and common options under Georgia procedures and federal reverse-mortgage rules. It is not legal advice. For advice specific to your situation, contact a licensed Georgia attorney or your local probate court.

Helpful Hints

• Order multiple certified death certificates early; lenders, title companies, and the probate court will need them.
• Don’t rely on a power of attorney after death; POAs end at death. Get probate letters or joint-heir consents instead.
• Get the lender’s document checklist in writing and follow it exactly to avoid delays.
• If all heirs agree, have the lender provide a template for renunciations or consents so the language satisfies their counsel.
• Keep all communications with the servicer in writing and note names, dates, and phone numbers for every call.
• Ask for a firm payoff figure and how long that payoff quote stays valid to coordinate closing correctly.
• Contact your county probate court clerk if you need to open probate — they can explain local filing steps and forms: https://www.georgiacourts.gov/
• Consider a short consultation with a Georgia probate attorney; a one-hour meeting can often save time and money and prevent mistakes at closing.