The US is going through one of its most challenging phases. Unemployment is at its peak and people are faltering on mortgage payments. Hence foreclosures have become very common. Auctions of foreclosed homes have become commonplace too. Now an American casino has defaulted on mortgage payments. It will be foreclosed soon.

Resorts Atlantic City has faced a foreclosure notice since January. It had taken a loan of $ 10 million and has not been able to make the monthly payments on it since October 2008.

The casino has also taken a $360 million mortgage from Column Financial, Credit Suisse’s real estate lending arm. The resort is running short of cash and the cash flow is indeed very poor.

However, there will not be any court battle. The casino will be taken over by the lenders. One owner will be paid an unspecified fee. The decision is pending the approval of the Casino Control Commission. This will be the first time that such a decision will be taken in the 31-year history of New Jersey’s casino gambling. This was revealed by a spokesperson, Dan Heneghan.

The hearing on the matter has not been scheduled yet. The commission spokesperson said that the request is being considered. The vice president of Atlanta-based TriMont Real Estate Advisors, Peter Hoelzle says a flawless transition to the new management is expected. TriMont Real Estate Advisors is the lenders’ representative.

Now a question that arises is if the casino will get a full license from the lenders. The petition was submitted on July 20 and asks if the new company Atlantic City Holdings LLC will get a non-gaming casino license. Under the agreement that is to come into effect, Colony Capital LLC will forsake its stake in the establishment to the co-owner Nicholas Ribis. The latter will not only manage the nightclub but will also own the equipment. Ribis, however, did not make any comment on this. Resorts Atlantic City was opened in 1978 and was the first casino to be opened outside Las Vegas. This casino, like many others in the US, has been the victim of recession. There is also cutthroat competition from slot parlors across the country like New York and Pennsylvania.

The revenues have also plummeted. In the first seven months, revenues are to the tune of $114.4 million. This is 22 per cent less than the corresponding period of last year. There are 942 rooms and caters to an older crowd.