CHICAGO (CN) – In a perfect real estate fraud, a loan servicer and a bank sold investors a foreclosed condo that did not exist, the buyer claims in court.
Plaintiff 5301 W. Ogden LLC sued Bayview Loan Servicing, JP Morgan Chase Bank, Pierce and Associates, and Judicial Sales Corporation, in Cook County Court.
5301 W. Ogden, an Illinois partnership, “is the purchaser of what was advertised as a condominium unit that in fact did not exist, known as 3233 W. Olive Unit B Chicago, Illinois,” the complaint begins.
The LLC claims it paid $39,300 for a condo that had been demolished even before it was put up for sale at a foreclosure auction.
A foreclosure judgment in favor of defendants was entered in April 2013, and they offered the condo for sale, according to the complaint.
“The notice of sale advertised the properly allegedly located at 3233 West Olive Unit B Chicago, Illinois for sale at auction to the highest bidder, advertised the property as ‘improved with a yellow brick multi-unit with no garage.’
“In fact, the condominium, Unit B, was demolished and no longer an entity at the time said advertisement was made,” the lawsuit states.
The LLC won the condo with a bid of $39,300, and “was led to believe, by the said notice of sale and his successful bid at the public auction that it had purchased a condominium valued at $125,000.”
However: “The condominium did not exist and plaintiff was thereby deceived and defrauded by the advertisement of a nonexistent condominium unit.”
The LLC, not unreasonably, wants its money back, plus costs and damages for fraud and detrimental reliance.
It is represented by Linda Spak.
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