Judge Blocks Graceland Auction, Lending Company Drops Claim on Elvis' Home

12:35 PM PT -- Now it's a total victory for Riley Keough ... as Naussany Investments and Private Lending has withdrawn all claims on Graceland, with prejudice -- meaning it can't be refiled.

In a statement, the company said it meant no harm to Riley ... who's insisted all along that the alleged loan to her mother was a total fraud.

Elvis Presley's Memphis home is staying in the family ... a judge just blocked the scheduled auction of Graceland by approving the restraining order Elvis' granddaughter, Riley Keough, requested.

An emergency court hearing went down Wednesday morning in Memphis, where attorneys for Riley presented their case to stop the auction which was planned for Thursday.

As we reported, a company called Naussany Investments and Private Lending claims Lisa Marie Presley failed to pay back a $3.8 million loan, and Graceland was the collateral. Riley, who inherited Graceland when her mother died, filed docs calling Naussany's alleged loan docs fraudulent.

Another reason the judge likely blocked the auction is ... Graceland is no ordinary family estate.

It's also a National Historic Landmark, and in fact the judge said, "The real estate is considered unique under Tennessee law."

If the auction had gone forward the judge said it would be "considered irreparable harm" -- not only to the Presley family, but potentially to the city of Memphis. Fact is, the whole region generates tremendous tourism dollars from the millions of annual visitors to Elvis' home.