Erroneous Foreclosure and Mortgage decline

[Jacob Beg]

Hi All:

My cousin was supposed to close on a  conventional refinance in a few days. The lender is claiming that he had a foreclosure where he co-owned a property with someone and was on the title deed. Since the foreclosure was less than 7 years ago, he must wait for another year though he has purchased/refinanced properties with this and other lenders during that period.  

He never had any foreclosures and has no knowledge of the foreclosed property which is in the same county as his property. The lender's internal risk controls have identified someone else with the same name, however, the lender is not budging and is asking for proof that he has no foreclosures. There is no adverse reporting on the credit report either. He is being asked to prove the negative.

We contacted the lender that foreclosed on the property hoping they will issue a letter that my cousin is not their borrower as per his SSN and other identifiable details. Understandably, the lender is refusing to engage as he is not even their borrower.

A similar situation arose three years ago and he was able to provide a LOE that someone else bearing the same name, not him, had a foreclosure and that was acceptable. But this lender has laid the onus on him to provide proof of non-foreclosure of a property that he never owned. Him having a same name as someone with a past foreclosure is repeatedly causing this issue. 

Any ideas on how to resolve this?

Thanking you all!