Three-time Grammy Award-winner R. Kelly might today be singing the blues.

That’s because the super successful R&B singer, songwriter and record producer took a bath on his custom-built 16-room gated mansion, forfeiting it back to the lender, J.P. Morgan Chase, at a recent Cook County, Ill., foreclosure auction for a modest $950,000.

Kelly paid $1.5 million for the property in the late 1990s; however, he razed the existing structure, took out a $3.5 million mortgage and erected the current 22,000 sq. ft. estate. The suburban Chicago home sits on three acres with a private lake, featuring “six bedrooms, eight full bathrooms, six half-baths, an indoor pool and theater,” according to SunTimes.com.

This is not the first sign of financial trouble for the “I Believe I Can Fly” crooner, who reportedly owed the Internal Revenue Service (IRS) nearly $5 million in unpaid taxes as of 2012.

J.P. Morgan will likely re-list and market Kelly’s former home as soon as possible, hoping to recoup the $2.9 million that is still owed on the original mortgage note.

Photo via Wiki Creative Commons Use license.

Don’t blame embattled Miami Dolphins General Manager, Jeff Ireland, for the latest bad National Football League (NFL) news to emanate from South Florida.

Retired four-time All-Pro linebacker Joey Porter, who played for the “Fins” from 2007 to 2009, and three-time Pro Bowl quarterback Daunte Culpepper who barely lasted one season on the roster (2006), are both currently facing foreclosure in the same “Sunshine State” neighborhood. South Florida Business Journal reports (here and here) that Porter is delinquent on his $2.8 million mortgage that he took out on a 10,600 sq. ft. luxury home in Southwest Ranches, while Culpepper is late on his $2.93 million loan for a similar-sized property right around the block.

Porter, according to the report, purchased the $4 million, 2.3-acre property in 2007, which is around the time he came over from the Pittsburgh Steelers after inking a five-year, $32 million contract. In addition to not paying his mortgage, Porter has stiffed the Homeowner’s Association, which filed a lien against him for unpaid dues that date back to 2011.

Culpepper, meanwhile, dropped $3.67 million on his slice of paradise after coming over from the Minnesota Vikings in a trade, earning $8 million guaranteed in his first year. Unfortunately, Culpepper — who was coming off major knee surgery — struggled, was placed on injured reserve after just four games and cut when the season concluded. The Ocala, Fla., native — who starred at Central Florida University — washed out of the league after three more seasons and two different teams.

One can only hope that the Dolphins latest high-profile off-season acquisitions, wide receiver Mike Wallace and linebacker Daniel Ellerbe, have better luck on (and off) the gridiron.

Photo via Wiki Creative Commons Use license.

The taller they are, the longer they fall.

Robert Swift — a 7’1″ former National Basketball Association (NBA) center for the Seattle SuperSonics — is holed up in his suburban Seattle, Wash., home, refusing to vacate the property even though it was recently purchased at a foreclosure auction for about half the price he originally paid for it, according to KOMONews.com.

He has about one week to leave or he will be forcibly removed by the King County Sheriff’s Office.

If the news report is any indication, Swift is in no hurry to pack up and get gone. He was reportedly sound asleep when reporters seeking comment appeared (twice) on his doorstep, which is littered with empty beer cans and a sign on the front door that warns, “Danger Men Drinking.” A bullet hole in a garage window, as well as cars in the driveway “that don’t look like they’ve moved in a long time” only add to to seemingly sad situation.

Swift — a first round NBA lottery pick (No. 12) in 2004 — skipped college, entering the league direct from high school. He played three seasons with the SuperSonics before moving on to Oklahoma City during the 2008-2009 campaign before he could no longer cut it on the professional circuit. In the years that followed, Swift attempted to resurrect his career in the NBA Developmental League and then, most recently, in Japan as a member of the Tokyo Apache.

He reportedly earned about $20 million throughout his professional basketball career.

Retired National Football League (NFL) running back, Jamal Anderson, recently lost his 10-bedroom, 12-bathroom luxury home in Atlanta, Ga., in a foreclosure auction, according to AccessAtlanta.com.

Anderson purchased that mansion for $1.25 million back in 1999, which was at the height of his success on the gridiron. In fact, it was around the same time he helped the Atlanta Falcons to its first Super Bowl in franchise history against the Denver Broncos. Anderson — who led the conference in rushing that year with more than 1,800 yards — picked up 96 yards on the ground in a losing effort (34-19).

After a seven-year career, the “Dirty Bird” hung up the pads in 2001 after suffering a serious knee injury.

Anderson has gone on to become a football analyst on television, often appearing on ESPN and other major networks. He has also had a public battle with the Internal Revenue Service (IRS) since his retirement, as well as brushes with the law that include suspicion of cocaine possession and Driving Under the Influence (DUI).

In 2007, Anderson and his now-foreclosed “crib,” which the bank unloaded for $225,000 less than what he paid for it more than a decade ago, were featured on MTV. Video of Anderson’s MTV “Cribs” episode is below.

Go big or go home.

Or, in the case of Andre Barbosa, go big and go into a $2.5 million bank-owned home in Boca Raton, Fla., that isn’t his, but claim that it is. Then, complete “adverse possession” paperwork (we define the term here) and file it with the county clerk.

Voila!

Technically, Barbosa is now allowed to live in the home, rent-free, and the local authorities are for all intents and purposes are handcuffed until Bank of America, which reclaimed the property through foreclosure last year, takes notice/action.

And if he pays the bills and property taxes the luxury property would eventually become his by default in seven years.

However, Bank of America doesn’t seem like it is about to let that happen, releasing the following statement on the “serious” matter (via WPTV.com):

“We have been in communication with the Boca Raton Police Department regarding the concerns with the occupants of 580 Golden Harbour Drive. There is a certain legal process we are required by law to follow and we have filed the appropriate action. The bank is taking this situation seriously and we will work diligently to resolve this matter.”

Adverse possession is not new; on the contrary, its roots trace back to 16th-century England (we first talked about it two years ago here). It was introduced in Florida decades ago so that farmers could make the most out of abandoned land.

However, with the foreclosure flood in the “Sunshine State” and banks overwhelmed with paperwork, more and more cunning opportunists are playing the adverse possession card while it’s still possible. In fact, 13 such claims were made in Palm Beach County in 2011, 19 in 2012 and six already in 2013.

None clearly as big (or bold), though, as Andre Barbosa.

Foreclosure.com executives recently left the sunny South Florida shores to brave the chilly streets of New York, N.Y., to attend Inman’s annual Real Estate Connect NYC conference.

However, before we hit up the Grand Hyatt New York to talk turkey and rub elbows with fellow industry insiders, the team made a pit stop at The Roger Smith Hotel to attend RE BarCamp New York 2013.

RE BarCamp is “an ad-hoc gathering born from the desire for people to share and learn in an open environment.” It’s essentially an informal, educational session that real estate professionals — Realtors, lenders, title, escrow, appraisers, inspectors, virtual assistants, home stagers and others in the industry who are eager to improve their businesses through social media — attend to share ideas, best practices and learn from their peers in a laid-back setting.

It always turns out to be a very meaningful and rewarding experience.

Stephen Chip, Foreclosure.com Director of Business Development and our resident social media guru, was on the scene to soak in all the helpful information, as well as snap a few photos to provide and inside look at these great gatherings. The interactive session featured below was led by Jonathan Miller (see his blog here) of Miller Samuel Real Estate Appraisers & Consultants, who discussed the “housing stats and what is driving them.”

For distressed homeowners who stressed and crammed to short sale their homes prior to Dec. 31, 2012, hoping to catch a major tax break on the difference owed to their lenders, y’all can take a collective sigh of relief.

That’s because the teacher, which in this case is the United States government, has given you one more full year — at a minimum — to get your financial affairs in order.

While most of us were doing our best to enjoy the 2012 holiday season, lawmakers on Capitol Hill were scurrying to ensure that the United States did not fly off the “fiscal cliff,” a complicated morass of tax cuts, tax hikes and tax breaks, which would have essentially curbed any and all progress made to restore the struggling national economy.

At the eleventh-hour (Jan. 1, 2013), Congress passed the “fiscal cliff bill” — “American Taxpayer Relief Act of 2012″ (see .pdf here) — to avoid the potential disaster. The bill has many nuances, however, a key provision is the extension of the aforementioned Mortgage Debt Relief Act of 2007 through 2013.

Cash-strapped homeowners who are considering a short sale and/or loan modification will now remain eligible for tax relief, meaning that they will not be required to pay taxes on forgiven debt if they are involved in a short sale, foreclosure and/or loan modification prior to Dec. 31, 2013.

Inman News breaks it all down:

“Had Congress not acted, the tax code would have reverted to its pre-2007 treatment of mortgage principal reductions or cancellations by lenders, whether through loan modifications, short sales, deeds-in-lieu or foreclosures: All principal balances written off would be treated as ordinary income to the homeowners who received them. For illustration, if a lender wrote off $100,000 of debt to facilitate a short sale, the seller would be taxed on that $100,000 at regular marginal rates, just as if he or she had earned it as salary. A return to taxation of principal reductions would have disrupted short sales — a growing segment of the home real estate market — in 2013, and almost certainly would have encouraged more distressed owners to opt for foreclosure and bankruptcy.”

The message is simple: If you want to avoid “scary tax bills” in 2014 as a result of your current (or even potential) distressed housing situation, do everything you can to avoid it right now. Research online, contact your lender(s), reach out to a local real estate professional and understand your options … and consequences. You’ve been given a second chance — don’t squander it.

Other key housing-related matters that were included in the bill covered deduction of mortgage insurance premiums, tax credits for energy-efficiency home improvements and tax credits for new energy-efficient new houses.

For more on the Mortgage Debt Relief Act of 2007 be sure to hit up our complete archive right here.

“Time is running out, undergraduate students encouraged to submit ‘presidential election’ essays soon to earn a share of $9,000 before it’s too late!”

Foreclosure.com today reminded college students nationwide who are enrolled in undergraduate programs that the deadline to submit essays for its 2012 scholarship program is less than one month away (Dec. 1, 2012).

The nation’s leading distressed real estate authority encourages all students (high school students, graduate students and law students are excluded), regardless of major, to apply for the scholarships, which total $9,000 and are divided among five qualified, winning entrants.

The Foreclosure.com Scholarship Program 2012 essay topic is as follows:

“What creative solutions, programs and/or initiatives to stimulate the United States housing market, as well as to turn the foreclosure tide, must a presidential candidate outline/promise to earn your vote? Feel free to include your very own original stimulus plan and/or ideas in your response, which can also be used to enhance existing platforms from candidates and/or other influential thought leaders.”

Entries are required to be original and be at least 800 words in length and no more than 2,000. Qualified students must visit the Foreclosure.com scholarship page, fill out the entry form and agree to the scholarship rules to enter the contest.

For complete scholarship details and to enter today visit Foreclosure.com (http://www.foreclosure.com/scholarship) prior to the deadline on Dec. 1, 2012.

“Housing, in general, and the foreclosure crisis, in particular, have been alarmingly absent from the presidential candidates’ discussions,” said Foreclosure.com Director of Education, Linda Yates. “The good news is that we’ve received literally thousands of passionate entries about this important issue that has affected countless families throughout the Unites States. And we look forward to reading many more as the election determines a winner this week.”

The $5,000 grand prize-winner will be selected by Foreclosure.com and its panel of third-party judges and announced prior to the conclusion Q1 2013. The four runners up will also be selected and announced during that time and each receive $1,000 grants. In addition, all scholarship winners will have their essays featured on Foreclosure.com’s scholarship page.

Foreclosure.com introduced its scholarship program in 2009. Since that time, the company has awarded 15 deserving college students throughout the United States with a total of $27,000 in scholarship money.

For complete scholarship details and to enter today visit Foreclosure.com (http://www.foreclosure.com/scholarship) prior to the deadline on Dec. 1, 2012.

Happy Halloween!

As usual, several Foreclosure.com employees embraced seasonal tradition and arrived at our corporate headquarters, which is located in Boca Raton, Fla., this morning dressed to impress.

Andy, our customer service manager, somehow even managed to find time to hunt and trim an albino fox-type thing that he can use to keep warm during these uncharacteristically cool South Florida temperatures.

Talk about a true Norsemen.

Check out a few more pics of our not-so-spooky cast below, all of whom are entered into our annual Halloween costume contest that will be held this afternoon.

Bruce Wayne and Clark Kent have got nothing on our resident superheros, Jackie and Kate.

Got an IT problem? Take it up with our very own custom-built Captain America-Lumberjack solution that Chuck and Robert can most likely troubleshoot.

Questions, comments, concerns? Our ghoulish and ghastly customer service representatives are always eager to lend a skeleton hand … just ask Katy, Robert, Rashayne or James for assistance. If you dare!

Last, and certainly not least, we weren’t sure what was going to go down when our sword-wielding pirate and mysterious “V” revolutionary collided, but it appears that Sharon and Elissa worked through their differences.

Trick or treat!

Note to all families in foreclosure who feel the need to sell their belongings — or in this case, give them away — via CraigsList.com:

Be very, very careful.

A family in Woodstock, Ga., recently posted an ad on the online classifieds clearinghouse, inviting others in the area to, “come over and take whatever you want” because they were moving as a result of foreclosure and wanted “everything to go for free.” Some of the items listed in the ad included a couch, chairs, lots of household and kitchen items/appliances and clothing, among others.

The items mentioned above were to be placed in the driveway like a traditional garage sale; however, guests arrived earlier than the 10 a.m. ET start time and entered the house while the family was not around. In fact, according to the homeowner who arrived on the scene to see “cars around the block” and everyone “like ants in and out of the house,” his home was ransacked and plundered.

Even personal belongings and family keepsakes were removed without permission.

Here is how the homeowner attempted to rationalize the situation (via 11alive.com):

“Never thought in a million years that they would come and take all of our stuff in the house. They probably thought that they were allowed to come [inside], and they saw other people coming in and out, and they thought it was OK…. It’s just a nightmare.”

That’s quite the understatement.

The homeowners are requesting that those who removed items from the house return them as soon as possible “no questions asked.” In addition, the homeowner provides his email address in the original report that you can read right here. In the meantime, the video below details one of the more bizarre foreclosure nightmares we’ve come across.