Michael Jackson Foreclosure: No, Really

On November 7, 2007 we reported "Neverland Ranch Is In Foreclosure" and the news spread around the world within hours. TMZ.com picked it up, and then television, Newspapers and internet sites reprinted the document one of our tipsters sent to us. Today Google reports 41 thousand pages with the headline "Neverland Ranch Is In Foreclosure."

Jackson's publicist refused to comment for days, and then came out and denied the story.

Yahoo! News: "A spokeswoman for Michael Jackson on Friday denied reports that the former "King of Pop" will be forced to give up his Neverland ranch in California over delinquent loan payments."

Turkish Press: "Jackson's spokeswoman Raymone Bain said in a statement that the singer, who has not lived at the property since his acquittal on child sex charges in 2005, did not default on a 23.2 million dollar loan on the home."

theHollywoodGrind.com: "A Jackson spokesman denied Jackson was ever in "default of the loan.""

We find these statements quite surprising given that our initial coverage was derived directly from public documents filed regarding Jackson's property. While no one can say with certainty whether or not Jackson will actually lose Neverland ranch in the future (he could always sell off some of his Beatles portfolio to raise cash), it is quite well established that the property is currently in default and is amidst the foreclosure process.

To further support that claim of fact, today we present to our readers the notice of default filing ("Notice of Default and Election to Sell Under Deed of Trust"), which announces and explains the proceedings in rather clear language (highlighting emphasis is ours):

According to our Title Company source, this property is 'technically in the foreclosure process." Direct quote from them:

"I would say those would be correct facts... absolutely."

A Notice of Default is specifically designed to start the foreclosure process and is only created when a borrower defaults on the terms of the note. In this case the NOD shows a defaulted balance of $212,963.00. This would make Jackson's PR agent's denial of default status, well, less than truthful.