Fourth bank begins foreclosure against Hamilton

Recent foreclosure actions now total nearly $18 million

By Jeremy Fugleberg, Journal staff | Monday, January 05, 2009

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A fourth bank has begun foreclosure actions against Rapid City businessman Doug Hamilton.

BankWest claims Hamilton and numerous corporations and partnerships he controlled defaulted on nearly $8 million in mortgages, according to court documents filed Wednesday.

Hamilton, who owns many properties in Rapid City, is embroiled in foreclosure actions brought by three other banks in the past two months. The actions in court against him at this time total almost $18 million.

The properties included in the foreclosure actions include about 60 acres of Tower Ridge property along U.S. Highway 16. At one time, that property was slated to hold a retail area, including a Wal-Mart. According to court documents, Dacotah Bank has a lien against one of the Tower Ridge properties for a 2006 mortgage.

Other properties are Valley High Apartments in Custer, three mobile homes in Pennington County, and in Rapid City, the Countryside Estates and Deluxe Mobile trailer parks and a home at 228 East Oakland Street.

The banks are suing Hamilton and his many corporations and partnerships that control his assets. At this point, the Journal has found Hamilton controls at least 40 corporations, which each control one or more partnerships.

Hamilton’s mortgages with BankWest began in 2004-2007, and all were renegotiated in April 2008. The banks are claiming Hamilton owes them $7,866,106.17.

When interviewed by the Journal on Wednesday, Hamilton didn’t address specific foreclosure actions but indicated he would end up with little to his name.

Tenants shouldn’t worry about losing their homes, he said, expressing confidence that he would survive apparent financial collapse.

“I’ll figure this out,” he said.

The Journal was unable to reach a bank representative to comment on the matter before the weekend. BankWest has 12 locations in South Dakota, including one in Rapid City.

Other banks involved in suits against Hamilton are Great Western Bank, Pioneer Bank & Trust, and State Bank & Trust of Fargo, N.D. Those banks previously refused comment or did not return Journal requests for comment.

Hamilton partnerships and corporations involved in the new foreclosure filings have names such as Whittingham & Le Strange, Barker & Little, Chase & Company, Lincoln & Talbot, C & W Countryside, Wilcox & Reid and Coteseford & Chamberlain.

Hamilton owes at least $560,000 in county taxes on the properties now in foreclosure, with some overdue taxes stretching back to 2005.

Contact Jeremy Fugleberg at 394-8421 or jeremy.fugleberg@rapidcityjournal.com.