R. Kelly Facing Foreclosure On Illinois Mansion

R. Kelly is facing a $2.9-million foreclosure suit on his Olympia Fields mansion, a vivid reminder of the steep decline in residential property values.

The singer-songwriter, whose full name is Robert S. Kelly, has failed to make monthly mortgage payments since June 2010 on the property on Maros Lane, according to a complaint filed by J. P. Morgan Chase Bank N.A. last month in Cook County Circuit Court.

Controversy continues to dog the singer, who was acquitted in 2008 on child pornography charges. Just last month, his former manager sued Mr. Kelly, alleging fees were withheld so that the singer could pay settlements of claims of alleged misconduct.

The 11,140-square-foot home was constructed in the south suburb 11 years ago by Mr. Kelly, whose hits have included “I Believe I Can Fly,” “Bump N Grind” and “Ignition.”

The two-story house sits behind an imposing gate on a 3.7-acre site. The structure features six full bathrooms, seven half-baths and a four-car garage, according to the Cook County Assessor’s website.

Mr. Kelly has not lived in the Maros Lane home for more than a year, according to a person familiar with his affairs. The singer stopped making payments on the mortgage in an attempt to force the bank to negotiate a modification of the loan, according to the source.

The appraised value of the home fell 26%, to $3.8 million, in 2010, compared to $5.2 million in 2009, according to an Assessor estimate. The home is now worth less than the debt, the source said.

Ouch!