( CNN ) -- Pop star Michael Jackson will avoid foreclosure on his Neverland Ranch property with a new loan , a Jackson insider told CNN Wednesday . Michael Jackson owes millions of dollars on his sprawling property in the Santa Ynez Valley in California . Documents show that Neverland Ranch in Los Olivos , California , is scheduled for a public auction on March 19 at Santa Barbara 's downtown courthouse . But the Jackson source said that wo n't happen . `` Michael Jackson 's ranch is not going to be auctioned off at the courthouse , '' the Jackson insider said . `` The financing is all being worked out . '' `` There are plenty of lenders willing to work with him . The real estate market is very bad right now and Jackson is being affected just like many other Americans , '' the source said . The Santa Barbara County Recorder 's Web site lists a `` notice of trustees sale '' by Jackson and his property lenders , Financial Title Company , filed Monday . In California , title companies typically represent lenders in foreclosure cases . A notice of trustees sale can not be posted earlier than 90 days after a notice of default is filed . That notice is not filed unless a loan is in substantial default , sometimes six months or more past due . A real estate source inside Santa Barbara County said the trustees filing is only the first step in a long process that could drag on for months . The real estate source said other options are available to Jackson , including selling the ranch directly to another party or making a payment on his $ 24.5 million Neverland debt that would satisfy the trustee . The recorder 's Web site also reveals there was a release of lien on Jackson on February 4 , showing he paid off all or part of delinquent taxes to the state of California . `` It seems unlikely that someone would pay off back taxes , only to let the ranch go up for auction a few weeks later , '' said the real estate source . Jackson has not lived at Neverland since June 2005 , after a Santa Barbara County jury found him not guilty of child molestation charges . E-mail to a friend .
A public auction has been set for March 19 , according to court documents . Jackson owes $ 24.5 million on the property . Jackson insider : ` ` The financing is all being worked out '' and it will be done in a very private way so that no one knows about this until after the sale'