Michael Jackson’s Neverland About To Be Foreclosed

Posted in Foreclosure, January 14th, 2008 |

The historical 2,900-acre Neverland Ranch of Michael Jackson with its history and memories might soon be lost to foreclosure. It is a legendary ranch – once the venue of children’s parties and perhaps few police raids. Next Friday foreclosure might suck it into its embrace. No one came forward to help Jackson with $23 million loan.

Desperate attempts had been made by a broker to refinance Jackson for the $23 million loan but so far the efforts have been futile. Nobody seems to be interested in saving Jackson now. Without refinancing the ranch can be sold at an auction. Fortress has initiated the foreclosure proceedings. Despite it laying off $300 million in loans to Jackson on HSBC Jackson had to use $20 million in clearing past debts. This left him without sufficient funds to tackle the Neverland crisis.
It is understood that Jackson and his three children have been living rent-free in Las Vegas (Palms Casino) as guests of Maloof brothers. Jackson had been till now availing of the hospitality of others like Prince Abdullah of Bahrain, dancer Michael Flatley and Prince Jefri of Brunei. Michael Flatley is suing Jackson in UK for $7 million.

The default notice on Neverland was issued on 22nd October 2007 by Fortress but as yet no action has been taken.

Jackson had bought it during the mid 80’s replete with playgrounds, zoo and arrangements for carnival rides. It was a replica of Hearst Castle – a sort of Valhalla for the little ones. But the love Jackson showed towards children came under a dark cloud of doubt. Since July 2005 Jackson has not lived in Neverland in Los Olivos, California. Two weeks after being acquitted from charges of child molestation and conspiracy he went off to Bahrain. A year later because of non-payment of wages Neverland was shut down and the entire thing went into disrepair due to lack of maintenance and repair.

Jackson has also a $4 million mortgage on the house of his parents in Encino, California.
It is a pity that a landmark of musical and dance history should sink into oblivion. Michael Jackson is not the first artist to have mismanaged personal finances and over reached himself. It is common for exceptionally talented persons to be enveloped in their creativity. It is expected of society to step in to save a chunk of history.