When a borrower is deceased their legal heir becomes entitled to the refund. In addition to providing Proof of Ownership, Proof of Entitlement is required, usually a copy of the death certificate showing next of kin.
According to HUD, in the event of the death of a co-homeowner who is a joint tenant or tenant by entireties, a copy of the death certificate establishes that the surviving co-owner(s) is/are entitle to payment. In the event more than one of the homeowners is deceased and the estate is closed, a copy of an executed will identifies the heirs entitled to the refund. If the estate is open, the refund is payable to the appointed official of the estate.