Bank Buys R. Kelly’s Mansion for Less than $1M

The famed R&B Artist’s former Olympia Fields home was sold for less than a fifth of its former value in a Monday auction.

J.P. Morgan Chase was the sole bidder in a Monday auction for R. Kelly’s mansion—formerly valued at $5.16 million, Sun-Times Media reports. They snagged the property, which they held the mortgage on, for $950,000—a number they set as the plaintiff in the foreclosure suit.

The Emmy-award-winning singer and songwriter was reportedly in arrears on his mortgage payments dating back to summer 2010. Chase bank claimed last year that R. Kelly owed over $2.9 million on the property. 

The 14,500-square-foot mansion, located on Maros Lane in Olympia Fields, features:

  • 6 bedrooms
  • 8 bathrooms
  • 6 half-baths
  • Indoor pool
  • Theater room
  • 4-car garage

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Worthy March 20, 2013 at 08:51 AM
It was a strategic default. The property tax assessment on this home are just too high. The mortgage payments were pocket change compared to the over assessed property taxes. Making this home totally worthless and unable to be sold to any rational buyer. In 2007 R Kelly paid over $250,000 in property taxes on this home. And the property was assessed at over 8 million dollars by the assessors office. R Kelly apparently appealed the property taxes several times over the years before defaulting on the mortgage.
Dinkum March 20, 2013 at 06:54 PM
Well, IF it was strategic his credit is ruined (my guess is not the first or the last time). And according to reports, he hadn't made a payment in years and still owes the IRS on back taxes. He wouldn't be paying $250K in RE taxes in today's market as the home value is well below $8M. He owed $2.9M on the place which, for a high roller like him, should have been pocket change. Guess not. His story is a familiar one. He overspends on a home (in fact, leveled a $1.5M home to build this monstrosity), the market takes a big hit, and now he seems to be bleeding bucks.
Worthy March 21, 2013 at 12:59 AM
Dinkum, the property taxes on this home are ridiculous. Which is why anyone who knows the facts won't fault r kelly for walking away. After all he was a resident of Olympia Fields for 15 years. Even when comparing the taxes to similar sized mansions on the north shore in lake forest. Which would sale for multiple times more than the $950,000 that R Kelly's home was just auctioned for. No high end home buyer in there right mind would pay $150,000 a year in property taxes for a mansion in olympia fields. In 2007, the property taxes were $250,000. So yes they have gone down a bit. But still extremely excessive. This isn't the only excessively taxed upscale property in the area. But this is probably by far the most extreme case of excessively high property tax assessments on upscale homes in flossmoor and olympia fields in particular. Taxes on many high end homes in matteson and homewood are pretty outrageous also. This leads to owners of upscale homes in those areas left with no other choice than to walk away and default when they are ready to move. That home will probably sit vacant without an owner and go into disrepair until it is torn down. Because no one else will want to pay $150,000 in property taxes for a home that is situated in the southern suburbs. Or anywhere else for that matter. Just like the mansion across the street from homewood-flossmoor high school now sits vacant and in disrepair. This is what irresponsible taxing of upscale properties leads to.
Juvenal March 21, 2013 at 03:01 AM
Well, yes, but HFHS is gonna have an awesome field house and they have that sweet synthetic turf field and then there's Laura Murrays $25k a month pension, etc etc. The OF leaders also nickel and dimed the USGA to ensure that the US Open never returns. So high taxes in the Southland have their good side......
Dinkum March 21, 2013 at 04:46 AM
Look, I live in Homewood and don't like the taxes I pay. My plan is to not stay here, however. I'm not walking away from my home and letting the lender hold the bag. The problem I have with your defense of Kelly is it ignores his fiscal responsibility. No one forced him to level an existing home, build a home bigger than his needs, and take out a big mortgage. People who have financial resources always have options. This is what irresponsible money management and big ego leads to.


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