–By PATRICIA SHIPP
Michael Jackson was so short of cash he used his parents’ home as collateral to raise the $3 million bail he needed to stay out of jail after his child abuse arrest.
With his music empire in disarray and insufficient equity in his $35 million Neverland estate, 46-year-old Jackson was forced to put up the house in Encino, California, where Joe and Katherine Jackson have lived for more than three decades.
This latest revelation over Jackson’s money troubles comes just two weeks after the The National Enquirer revealed that Neverland has been sold. Details of the buyer remain a closely guarded secret. “Michael put up his parents’ home in Encino as well as another condo in Encino that he owns,” said bail bondsman David Perez.
“Unfortunately, because neither property alone had enough equity to cover his bond he had to sign off on both of them which are in his name.”
The Jackson family headquarters has been re-financed several times and according to bail records currently has a $2 million mortgage.
“I was talking to Michael and Mark Geragos for a couple of days to secure his bail before he surrendered to the authorities,” Perez continued. “Mark, who was his attorney when he was arrested, always calls me to get his clients out of jail.
“While he was there Michael was literally shocked and completely overwhelmed by the whole thing.”
Perez said there was a concern Jackson’s bail would be raised the day he was hospitalized and the judge ordered him to court anyway.
He added: “Michael was late and we were all bracing for the judge to either revoke his bail, which would have landed him back in jail, or raise it considerably. I knew Michael really didn’t have anything else to put up for collateral but I was prepared to cover the bond anyway. I don’t find Michael a big risk.”