R. Kelly loses Illinois home to foreclosure

Illinois residents may take solace in the fact that even celebrities have not been immune to the effects of the recession. Until recently, singer R. Kelly owned a home in Chicago that is reported to be worth upwards of $5 million. The home was recently sold at a foreclosure auction for $950,000.

The fact that the home was sold at a loss of over $4 million only serves to further illustrate just how depressed the housing market in Chicago is right now. According to court documents, Kelly owed approximately $3 million on the home. Seeing a growing number of celebrities face foreclosure begs the question of how ordinary homeowners are supposed to be able to keep their homes when people who reportedly make millions of dollars a year are right next to them in court.

As is the case with other struggling homeowners, Kelly isn't only in trouble with his mortgage. It has been reported that he also owes back taxes to the IRS in an approximate amount of $5 million. Even so, the singer denies he is in financial trouble.

Many homeowners in Illinois don't have the luxury of denying that they are in trouble financially. Many are at the end of their rope with their lenders are looking for a way to either keep their home or walk away before the bank can either initiate or complete foreclosure. Filing for bankruptcy could give these homeowners a temporary reprieve from foreclosure proceedings in order to decide which way to go. In addition, filing for bankruptcy could eliminate other debt that is weighing on the filer. This would provide the fresh start that many people desire.

Source: Inquisitr.com, "R. Kelly Home Sold At Foreclosure For Huge Loss," March 18, 2013

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