Bank Reduces Price of R. Kelly’s Foreclosed Home

RKellyHomeJP Morgan is having a tough time selling the sprawling, 14,500 square foot mansion once owned by R. Kelly. The bank, which was the lender on the property, purchased the Olympia Fields, IL home in March at a foreclosure auction for $950,000, a far cry from the $5 million it was once thought to be worth. On July 16 the mansion was listed for $618,000, and today it dropped in price by $31,000 to $587,100.

R. Kelly had stopped making payments on the home for a year when JP Morgan sued him for $2.9 million. Kelly’s camp claimed that the singer stopped paying on purpose in order to get a loan modification; at that point the home was worth much less than when Kelly bought it in 1999, when it was valued at $5.2 million.

Kelly listed the home as a short sale in October 2011 for $1,595,000, and tried dropping the price to $995,000 in January 2013, but couldn’t find a buyer. JP Morgan was the sole bidder on the property at the foreclosure auction this March.

Listing photos indicate that some parts of the home have fallen into disrepair, including the basketball court, which now has weeds growing through it. Some evidence of Kelly’s ownership remains, including a room with a Chicago Bulls logo painted on the floor. Kelly is a huge fan of the Bulls, especially after his mega-hit “I Believe I Can Fly” was featured in “Space Jam” starring Michael Jordan.

The other home that Kelly owned in Chicago — where the video that got him into legal trouble was filmed — sold for a million dollars in 2008. The buyer completely rehabbed it and sold it in 2011 for $2,640,618.

What do you think of the home JP Morgan is trying to sell? Would you buy it? Tell us in the comments!

Discussion

  • Charlie Gordon

    Buyers may be nervous about what they might find in the closets.

  • Chander Singh

    House is a dump, he severely overpaid and this would need extensive renovation. That said price point for lot and sq footage of home is not bad, depending on resale comps in area bank could be willing to give away prop to get off the books at a great price.

  • NYC developer

    rough calculations would require about $200 per foot renovation or somewhere in the neighborhood of 3 million dollars. I don’t know what the neighborhood comps are, but you could own a great hime for under 4mill after about 1 yr worth of work. I wonder what the resale would be if someone did the project. Probably a good job for a builder as its mostly interior work that could keep a crew busy all winter.

  • Mr. New Millionaire

    I’m going to buy this house, rehab it, and turn it into a home for my family