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R. Kelly

Takes DEVASTATING Loss

on Mansion Auction

3/19/2013 9:28 AM PDT BY TMZ STAFF
Exclusive Details

0316-r-kellys-house

This has gotta hurt ... R. Kelly's Illinois mansion was auctioned off Monday for $950,000 -- waaaay less than the $3.5-million-mortgage the singer took out to the build the place.

Kelly built the 20,000-square-foot dream home back in 1997 -- but things took a turn for the worse in 2011 ... when his bank tried to foreclose, claiming he hadn't made mortgage payments for over a year.

Kelly tried selling the crib for $1.6 million to block the foreclosure  -- but no cigar ... it sat for a year. The bank then went full bore on foreclosure ... and it sold Monday for $950k.

The house has 6 bedrooms, 8 baths, an indoor pool, theater room and private lake.

In case you're wondering ... THIS IS NOT the home where R. Kelly may or may not have peed on a girl.

60 COMMENTS

No Avatar
31.

awesomewave    

Is the "private lake" warm and yellow?

546 days ago
32.

BradDavis    

Who?

546 days ago
33.

Shaydie    

That looks like a cheap facsimile of a mansion. A McMansion. Very shoddy.

546 days ago
34.

chupa cabre    

another one bites the dust.these idiots need to learn to manage money, instead of picking up ho's at da club

546 days ago
35.

John    

The home is beautiful. Just too big for me, no matter how successful I become, I could not sleep in a house that big. But it is beautiful. I love the layout and the landscaping. He has good taste. Very warm and manly. I love R. Kelly.

546 days ago
36.

Feeniegal    

R Kelly has made and blown lots of money. This story is sad. I was a big fan.

542 days ago
37.

monalisa85    

THIS IS WHAT I MEANT TO SAY:
No! Your the DUMB ASS! If you knew anything about R Kelly, you would have known he is a R & B singer and NOT a Rapper. Always have and always will be! So, take your Racist UNEDUCATED, WHITE TRASH and sit down somewhere!

541 days ago
38.

Emily    

I just don’t understand the way celebrities stop making payments on their mortgages. What do you expect for when you don’t pay off your loans? For banks there’s not difference if you’re a celebrity or an average person. First of all, you should be a responsible borrower and make payments on your loan in time. If a person doesn’t pay then he/she just can’t afford to proceed making payments or doesn’t need the house anymore. I think that R. Kelly has enough money and doesn’t need Illinois pay day loans to make ends meet, so probably he just doesn’t need this house.

538 days ago
39.

Cari    

FYI,

Most celebs keep a mortgage for tax purposes.

Also, record companies typically issue checks TWICE A YEAR (or every six months), after a singer releases a CD -- which allows them to recoup all of the expenses they advanced to the singer to make the CD.

All of the money spent for videos, photos, posters, studio time, etc. is counted against the singers check before they even collect one.

And by the way, taxes aren't taken out either, which is why a lot of entertainers are always in tax trouble.

Add to this percentages owed to managers, accountants, lawyers, not to mention ex-wives, child support and the like -- and you end up letting your house go.

But make no mistake about it, R. Kelly has written and produced some of the most prolific songs ever (i.e. You are Not Alone by M. Jackson; I Look to You by W. Houston; Fortunate by Maxwell; and too many others to name)....so based on the royalties for these alone he will NEVER be broke.

But that trial and divorce hit his pockets hard...so letting his home go into foreclosure was a business move to get from under that debt.

It's no different than the numerous times Donald Trump has filed bankruptcy to reorganize his finances.

533 days ago
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