Rinse Lima beans and place into a large stockpot or Dutch oven with just enough water to cover them, plus about an inch. Allow to soak about an hour to overnight, making sure beans always have plenty of water for soaking. Drain beans and rinse them again and set aside.

Meanwhile, in the bottom of another stockpot Dutch oven, heat the butter or vegetable oil over medium to low heat. Add onion and garlic and sauté until just tender, about 3 minutes. Add chopped ham and cook for about 3 minutes. Add the pepper, chicken stock, and about 4 cups of water. Add beans and bring to a boil, reduce heat to medium and let simmer for about 1 hour or until the beans are tender and the sauce has thickened.