King of Pop's Finances Going Poof?
Michael Jackson's credit rating appears to be moving into dangerous territory.
Per newly disclosed public records, the self-proclaimed King of Pop's financial woes have gotten so bad that he's had trouble paying the mortgage on a Los Angeles-area home that his famous clan has utilized for years.
Jackson failed to fork over payments of $153,000 on the Encino property to mortgage lender Indymac Bancorp. as part of a $4 million loan he took out.
Consequently, the once "Invincible" singer faces the possibility of defaulting on his financial obligation, which could result in foreclosure.
A document filed with the Los Angeles County Recorder's Office dated Feb. 7 reveals that the Pasadena-based company originally issued a notice of default to Jackson, but then vacated it.
Jackson's reps were not available for comment.
The cash-strapped music icon is already in the hole on a $24.5 million loan for his famed Neverland Ranch, which he defaulted on in October. As a result, Financial Title Co., a San Francisco-based lender, has announced plans to sell the residence/amusement park at public auction on Mar. 19.
If the sale goes through, the Gloved One will be forced to bid goodbye to such playthings as his Ferris wheel, carousels, railroad and other Wizard of Oz-like paraphernalia.
Should he cough up the dough to hold onto it, as Fox News reports, the "Off the Wall" crooner will still have to pay the Internal Revenue Service a whopping $5 million in capital gains taxes.
That's because he purchased Neverland for an estimated $12 million to $14 million back in 1988, and should Financial Title sell it for the full value of the loan, the trustee would stand to make $10 million, $5 million of which Jackson would be liable to pay to the IRS for the capital gain, per California law.
Jackson does have one fallback: performing.
According to Fox, U.K. promoter AEG Live offered the Moonwalker a guaranteed $10 million if he agreed to 10 concerts at its Millennium Dome in London, with an option for 30 shows for $30 million. The only catch? Jackson would have to perform all the tracks on his landmark Thriller album—which is celebrating its 25th anniversary this year—from start to finish, along with at least six other classic hits.
No word whether the offer is still good. But certainly getting back out on the stage could help pay the bills—and just maybe help him regain his earlier legendary footing.
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