Shocker for OLIVIA NEWTON-JOHN: A guy not only committed suicide in her Florida home, his spirit started haunting it – which killed a pending sale of the property to comedienne ROSIE O’DONNELL!

But unbelievably, there’s a happy ending to this spooky tale, said a source close to the singer: “It all began when a contractor suddenly took his life in Olivia’s home.

"She and her husband had been sprucing their place up prior to selling it, and had sealed a deal with Rosie – but Funnylady backed out fast when she heard about the suicide, deciding the house had ‘bad vibes.’

"In desperation, Olivia hired a psychic to exorcise the dead man’s spirit. That worked so well, she started consulting psychics in hopes of communicating with the spirit of her beloved sister Rona, who died from brain cancer in May.

"Finally, one psychic connected, and proved it by communicating things only Olivia and Rona could know about.

"Now she’s totally thrilled, telling pals she’s been comforted by the connection the psychic’s established with her sister.”

CLICK HERE for exciting news about Mike’s new novel “Out for Blood!”