R. Kelly Home Sold At Foreclosure For Huge Loss
R. Kelly has sold his home in Chicago for a loss of more than $4 million.
The home, located in suburban Olympia Fields, has six full bathrooms, seven half-baths, and a four-car garage and was valued at more than $5 million. But a new owner was able to buy the mansion at an auction for $950,000.
R. Kelly had owed more than $3 million on the 11,140-square-foot home, J.P. Morgan Chase stated in court. On Monday, the bank stepped forward to purchase Kelly’s former home and will put it back on the market once a judge approves the deal.
R. Kelly now joins a growing list of celebrities who lived large in the 1990s and early 2000s and paid for it once the recession hit and the housing market imploded. Earlier this year former NBA star Allen Iverson lost his $4.5 million Atlanta home to foreclosure after defaulting on his mortgage.
Las Vegas entertainer Wayne Newton has also gone through a messy foreclosure process at his giant estate near Sin City, and was also forced to sell of his menagerie of exotic animals.
Rumors have also circulated that the Long Island home of Dina Lohan, where her daughter Lindsay has reportedly stayed because of her own financial problems, is facing foreclosure as well.
For R. Kelly, the foreclosure is another sign of financial problems he’s faced in the past few years. Last year, the “Trapped in the Closet” soap opera creator was hit with $5 million bill from the IRS for unpaid taxes.
Kelly originally paid $1.5 million for the property, which once belonged to a wealthy family that owned several McDonalds franchises in the area. When Kelly demolished the exiting home to build the mansion that stands there today, the family was reportedly heartbroken.
Despite R. Kelly having to sell his home at foreclosure and owing the IRS millions, the singer’s spokesman Allan Mayer said Kelly isn’t having any financial troubles.