R. Kelly’s Chicago-Area Home Listed As a Short Sale

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Recently, the Grammy Award winner R. Kelly’s suburban Chicago home has been listed as a short sale. The Olympia Field’s home is listed for a little under $1.6 million. The R&B singer-songwriter previously faced a $2.9 million foreclosure lawsuit after failing to make payments since June 2010.

According to its listing, the sprawling piece of Chicago real estate located on Marcos Lane includes 22,000-square-feet, six bedrooms, eleven bathrooms, a four-car garage, an indoor pool, a theatre room, six acres of woodland and a lake. The mansion itself was built in 1997 and Mr. Kelly paid $3.5 million in 1999 for the home.

Similar to many American homeowners, R. Kelly’s mortgage is “underwater”. His home lost 26% of its value during 2009-2010. The performer’s net worth is said to be around $150 million and yet he has failed to make payments on the Olympia Fields home since last year. As a result, JP Morgan Chase Bank has taken action with a foreclosure lawsuit in Cook County.

The reasoning behind his failure to meet loan obligations is a story that’s increasingly common in this country. According to an article in Crain’s, Mr. Kelly discontinued payments in an unsuccessful attempt to make the bank renegotiate and modify the loan. However, even someone with the financial assets and high-quality legal access as a world-famous celebrity had trouble getting the lender to make adjustments.

Once Mr. Kelly stopped making payments, it is said he discontinued living in the home. He probably won’t totally default on the property but he will take a big loss on it. The two-story suburban Chicago mansion presents a great deal for potential buyers, due to the hugely reduced REO pricing.