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Neverland in Foreclosure?

Posted Nov 6th 2007 8:19PM by Celly

Rumors have been rampant for months that Michael Jackson's Neverland estate was about to be foreclosed upon, but now comes the first concrete evidence that Jacko's home is about to go back to the bank. Who's bad?

The Implode-O-meter has obtained the foreclosure and Notice of Default report for Santa Barbara County -- and Neverland is listed. According to that report, Jackson is, as of October 12, delinquent $23,212,963 on a $23,000,000 loan.

Notice of Defaults in the state of California typically go out when a homeowner misses their third payment. After another 30 days, the homeowner is issued a foreclosure notice. According to this document, it appears that the King of Pop is $212,963 delinquent on the loan's principal of $23 mil.

A rep for Jackson did not immediately return our call for comment.

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(Page 14 of 14) Previous 15 Comments

196. hehehehe, look at the bright side, at least his face isn't in foreclosure

Posted at 6:18AM on Nov 9th 2007 by hiphopalong

197. Angelina and Brad were going to buy this the other day, it was online. Is this one of those homes for $1.00????

Posted at 6:19AM on Nov 9th 2007 by web

198. This is breaking news..this is old news.

Posted at 6:24AM on Nov 9th 2007 by OMG...Travolta

199. That's good now the little one's have no reason go to his WONDERLAND - i'm sure the more you look the more you wonder .......maybe he'll build his own school-house for boy's------wonder- boy is mad that he didn't think of it before oprah

Posted at 6:55AM on Nov 9th 2007 by Mel

200. I have never been a Michael Jackson fan. I didn't care for the music of the Jackson 5 and certainly didn't care for Mike's adult dancing with his hand on his crotch. But I do want to reply to some of the real estate stuff. Michael Jackson over the years has probably sucked all the equity he had out of Neverland by refinancing the place over and over again. I doubt if he will take a loss on the place. He bought the place ages ago and probably only paid a few million for it. I am sure he made an arm load of improvements (an accounting term and not a description of what he has actually done to the property) which would add to the basis of the house. As to the tax consequences that is a different matter. If the house is foreclosed at $23 million plus he will basically have a selling price of $23 million for the place. Unless he has a basis of over $23 million in the dump he will have a taxable gain and I suspect that could be a sizeable amount. If he has a loss (which I doubt) then he may or may not have a deductible tax loss. Like a lot of home owners are learning now or will learn shortly, a loss on selling your residence is not deductible. Uncle Sam and the state of California (doesn't matter where he lives, the property is in California and any gain will be taxed by the state) may be waiting to hit ol' Michael with a sizable tax bill on the foreclosure. You bet your ass that if he walk away from a debt of $23 million plus that he has debt forgiveness and the IRS calls that taxable income. He could end up in a deeper tax hell than Willie Nelson and Chuck Berry.

Posted at 6:53AM on Nov 9th 2007 by The Bean Counter

201. paul mccartney--this is your chance---buy back your catalog!!!!

Posted at 7:35AM on Nov 9th 2007 by debbie

202. yes!!..what does rap and hip hop have to do w/MJ's money issues..and quite frankly if MJ is NOT BROKE!!!!!!!!!!!!!!!!!!!!!btw..I still luv ya MJ!!!!!!!!!!!!!!!!!!!!

Posted at 9:22AM on Nov 9th 2007 by roz

203. HAHAHAHAHAHA
I am so glad twinkle toes will not be returning to Cali

Posted at 1:35PM on Nov 9th 2007 by Persephone

204. He's not broke fianancially.

Posted at 6:54PM on Nov 9th 2007 by Proud

205. Whatever he may be, the fact remains he is a great and talented entertainer. He is a product of a screwed up family. Let this be an example to all. Make sure your family is not screwed up like his!
Yeah a screwed up family... they had a TV show in the 70s Michael was the #1 pop star of the 80s and his sister Janet made millions in the 90s... I wish my Dad abused me when I was a kid.

Posted at 9:43AM on Nov 10th 2007 by dude

206. Jacko(ff) really. He should just give it to the bank and let them pass it on to a kids charity with the notation that he NEVER set foot on the premises again during his or his kids lifetimes. Let it be used for kids with catastrophic illness with all those toys and rides. He loves out of the country most of the time anyway.

Posted at 6:12PM on Nov 11th 2007 by Rick

207. I find it odd how during the trial everyone thought Neverland was such an ugly place
and everyone wanted it shut down, now everyone is gasping its in forclosure, If you
belive bad things happened to children there wouldnt you want it to forclose?
why would you want him to keep it? everyone must be a hipocrite

Posted at 7:24PM on Nov 14th 2007 by jenny ruby

208. Wow what happened to him?

Posted at 7:50AM on Dec 24th 2007 by Portland Real Estate

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