Singer R. Kelly has now joined a host of celebrities who have not been able to escape the impact of the recession. Like many homeowners here in New Jersey, he was unable to stop foreclosure of his reportedly $5 million home in the windy city. His lender, J.P. Morgan Chase purchased the home at auction for $950,000.
That’s more than $4 million below the estimated value of the property and still millions less than the lender says he owes them for the mortgage on the property. Court documents indicate that the singer was indebted to his lender for roughly $3 million. There are many celebrities who have been through, or are going through, the same thing all over the country.
As with most people who are facing foreclosure, R. Kelly has other financial problems. It has been reported that he owes the IRS somewhere in the neighborhood of $5 million in unpaid taxes. There are very few people facing foreclosure that are not struggling in other areas of their financial lives.
This is one fact to which many homeowners in New Jersey are able to attest. Many people are helpless to stop foreclosure of their homes and are struggling financially. Filing for bankruptcy protection could give homeowners the breathing space they need to conquer their financial problems. Whether they want to negotiate a refinance with their lender or walk away from their mortgage and home, filing for bankruptcy can give the time and space to make that choice. Many people have and could benefit from filing bankruptcy and getting a fresh start financially.
Source: Inquisitr.com, “R. Kelly Home Sold At Foreclosure For Huge Loss,” March 18, 2013