Elvis Presley's Graceland estate up for foreclosure auction leaving granddaughter Riley Keough 'traumatized'

Elvis Presley's famous Graceland estate is up for foreclosure and Riley Keough is not happy about it.

The world-famous Memphis property is set to be sold to the highest bidder by Naussany Investments and Private Lending LLC later this week.

However, Keough - Elvis's granddaughter, who became the new owner of Graceland when her mother Lisa Marie Presley died last year - is fighting back.

The people behind the selling claim Lisa Marie signed a Deed of Trust, using Graceland as collateral, to secure a $3.8 million loan.

However, they claim she failed to pay it back before passing away at the age of 54 in January 2023.

A 60-page lawsuit has been obtained by PEOPLE, with Keough alleging: "The note and deed of trust are fraudulent and unenforceable."

The model and actor asserts in the lawsuit: "The purported note and deed of trust are products of fraud and those individuals who were involved in the creation of such documents are believed to be guilty of the crime of forgery.

Graceland estate is up for foreclosure. (Getty Stock Photo)

"On information and belief, Naussany Investments and Private Lending LLC is not a real entity. Naussany Investments and Private Lending LLC appears to be a false entity created for the purpose of defrauding the Promenade Trust, the heirs of Lisa Marie Presley, or any purchaser of Graceland at a non-judicial sale."

On top of that, Keough also voiced in the paperwork: "These documents are fraudulent. Lisa Marie Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments."

An injunction is currently slated for Wednesday after a temporary restraining order on the sale was granted on Monday.

Naussany Investments is yet to comment on the proceedings.

Elvis Presley Enterprises - the entity that runs Graceland - has also weighed in on the selling matter.

Riley Keough is fighting back. (Taylor Hill/Getty Images)

In a statement provided to NBC News, they said: "Elvis Presley Enterprises can confirm that these claims are fraudulent. There is no foreclosure sale. Simply put, the counter lawsuit has been filed is to stop the fraud."

Whether Graceland remains in the family or not, Priscilla Presley - Elvis' ex-wife - wants to be buried next to him after her death.

It came a few months after Keough and Priscilla reached a settlement agreement over Lisa's estate, something that was later approved by a Los Angeles Superior Court judge.

Judge Lynn Scaduto signed the agreement in October that saw Priscilla receive a $1 million lump sum funded by Lisa Marie’s $25 million life insurance policy.