Expert: Dick Dennis - 12/28/2006

Question
I am interested in purchasing a residential property in Chicago. The property is owned by a bank which owns half of it (50%) while the other half is owned by an individual who actually took out a loan with the bank for 50 percent of the property worth. After the individual received the money from the bank the person disappeared and left town defrauding the bank without repaying the loan. The Bank told me that I could buy their half of the property but I would have to file a partition action to try to get the other half of the property. I am not sure if I can get a mortgage to finance 50 percent of the property. I would like to know if there is any other way I can safely purchase the property and get a title that is free and clear without having to worry about any litigation later if I did somehow purchase the half from the bank.

Steven.

Answer
If I understand this correctly, the bank lent 50% of the property to a skip artist. Okay. So they foreclosed on his 50%. And now they own 50% of the property with someone else. You did not say that that person at one point owned 100% of the property. So, who is the owner of the OTHER 50%? Go to that person and ask if you can buy his 50% and negotiate a transaction, Steven. If you're not quite sure, I recommend you go to a local REAL ESTATE attorney. He will apply Illinois laws and get the other 50% for you.

I do wish you well.

Dick Dennis