Located in south suburban Olympia Fields, it has six full bathrooms, seven half-baths and a four-car garage.
The property was being foreclosed on.
The property once was valued at more than $5 million.
Last year, J.P. Morgan Chase -- which bought the house Monday -- stated in court files that Kelly still owed about $3 million on the 11,140-square-foot home. Once a judge approves the deal, the bank can put it on the market.
Kelly's one-time spokesman, Allan Mayer, says he can't comment on the auction, but the Grammy winner isn't having financial problems.
Kelly was acquitted of child pornography charges in 2008.
The Associated Press contributed to this report.