Michael Jackson's tax settlement

Feb 8, 2008, 11:35 GMT

Michael Jackson - New York, NY © Wild1 / Photorazzi

Michael Jackson has finally paid $600,000 in outstanding taxes on his Neverland home.

Although the 'Thriller' singer has settled the huge bill, he could still lose the mansion because he owes $23 million in loans taken out against the home.

Jackson has missed the foreclosure deadline set by Fortress Investments, the company which lent him the money, and could face legal proceedings at any time.

However, it has been claimed Jackson may have arranged for a time extension through his billionaire friend Ron Burkle.

Last November, it was revealed Jackson could lose Neverland after he missed a string of loan repayments.

According to a foreclosure report, the singer initially owed $200,000 in property taxes which later rose to $600,000 because of non-payment penalties and accruing interest.

Jackson, 49, moved out of Neverland in 2003 and vowed never to return after he was accused of child abuse.

Although the star was later cleared of the allegations he claimed the ranch brought back too many bad memories for him.

Neverland boasts a zoo and an amusement park in the ranch's extensive grounds and often had sick and underprivileged children to visit.

(C) BANG Media International