Lender cannot close DSCR loan due to Tax Foreclosure record on Primary residence

[Chad Wan]

I was applying for a DSCR on my rental property (cash out refinance) and everything seemed ok, my FICO 680, DSCR 1.08, Appraisal $179K, LTV 65%.

Unfortunately, the lender cannot close due to derogatory on record on my primary residence.

I bought current residence with cash on 2021. I was under impression that property tax was included. Turn out it wasn't and property was in tax foreclosure on 04/29/2024. I bought the property back from the auction on 08/30/2024. This was not on credit history but on chain of title. 

Any lender has experience close on situation like this. What is my option here? Is there any work around this. Thank you.