• Singer of “I Believe I Can Fly” Brought Down by Foreclosure

    Award-winning R&B artist R. Kelly is facing a $2.9 million foreclosure suit on his mansion in Olympia Fields.

    The music artist has not made a payment on his mortgage since June 2010 according to a complaint filed by J.P. Morgan Chase Bank N.A. in Cook County Circuit Court. The bank filed the lawsuit in June 2011.

    The mansion is a two-story house on a 3.7-acre site. Included in the home are six full bathrooms, seven half-baths and a four garage, as listed by the Cook County Assessor’s website.

    Mr. Kelly constructed the 11,140-square-foot home in 2000, but has not lived there for over a year according to an individual familiar with his movements. The source said that payments were stopped in an attempt to force the bank to negotiate a modification of the loan.

    At issue is the current appraisal amount on the home. The mansion appraised for $5.2 million in 2009, but fell 26% to $3.8 million in 2010. The home is now worth less than the debt, according to the source.

    The current principal amount due is over $2.9 million. Not included in the debt is unpaid interest, which is accruing at the rate of $251 a day, and various related charges from the bank.

    Benjamin Brand Services – Chicago foreclosure attorney

  • Data Center Can’t Stop Foreclosure Virus on Building

    A data center southwest of downtown Chicago is undergoing the foreclosure process after missing mortgage payments since February 2011.

    Cole Taylor Bank says the owners of the 107,000-square-foot data center at 601 W. Polk stopped making debt-service payments in February and is behind on property taxes according to a suit the bank filed in May. To date, no foreclosure help has been sought by the owners.

    The property is owned by ventures of Richard Beston and John Branch, principals of investment banking firm Rainmaker Financial Group Inc. In 2006, they purchased the center for $9 million with an affiliated private-equity company, Ten X Capital Partners. They financed part of the purchase with a $5.4 million loan from Cole Taylor according to property records.

    The property at 601 W. Polk, also known as Chicago Media Center, is 60% leased and generates enough cash flow to service its debt. However, the property could use some renovations according to Christopher Jensen, a principal with Chicago-based Digital Capital Partners LLC.

    Cole Taylor’s lawsuit states the property’s 2006 loan was modified six times between January 2007 and November 2010. Another $1.5 million was added to the loan which puts the total balance due to $6.25 million.

    The suit seeks to collect on a guarantee given by RM Advisors, a venture managed by Beston and Branch. Ten X Capital Partners III LLC is also a defendant.

    Benjamin Brand Services – Chicago foreclosure attorney