Storage Auctions
The Storage Locker => New to Storage Auctions? => Topic started by: Christie on January 30, 2011, 02:15:09 PM
-
There is a storage warehouse in my area that has a public notice in the paper stating they will be taking possession of the items in the unit by today if not paid, but it also states that no bids will be permitted. Does anyone know what they do with the items in the unit?
-
Sounds shady I think by law they have auction. Maybe states are different I am sure someone knows the laws better than me on here and can answer that better for you
-
That's a new one on me. Maybe they will sell it off on their own instead of having an auction. Or maybe the auction will come later with this just being a notice to the "owner" that they are out of time.
-
I know where I'm from I do believe they dont have to have an auction. The owner of the facility can 'dispose of the items as they see fit.' I called one facility and they flat-out told me they dont do auctions. They said they sell all of their stuff to 2 stores in town. :-\ I think all they have to do is post an ad in the legal section of the paper, but they are under no obligation to auction the items. --But your city may be different. HTH
-
Thanks, I believe that is the case here. There is a junk store (I don't know what else to call it). And I think they must buy all the units in my county. I am going to call around when I get a day off and find out.
-
I knew I saw this thread somewhere! Last night, my brother who lives in Arkansas called me. He was talking about an auction that was listed in the paper under legal notices. He went there to find out what time to show up, and they told him that they sell all their units to one guy. He buys them all and they don't do any auctions.
I don't know about Arkansas, but out in WA, if the facility values the contents of the locker at less than $300, than legally they can just dispose of the contents after all the proper paperwork has been sent and the proper amount of time has passed. Fortunately, most facilities have the auction!
-
In my state of IL facility gets to keep whatever they are out in rent and late fees. The remainder goes back to the buyer. In my state they could not do piece piece auctions and keep all the proceeds for themselves.
I guess laws probably vary state to state. The whole storage auciton thing seems crazy in Canada, a big mish mash of laws, nobody seems to know the correct way things are to be done and its done differently all the time
-
Most storage facilities reserve the right to dispose of the property in the storage unit any way they see fit. Our company in Houston (http://auctionstx.com/houston-storage-auctions/) calls about 1400 storage facilities twice a month, so I can give you some inside information on this subject. Believe it or not, about 15% of all storage facilities in the greater Houston and surrounding areas don't even have auctions. Most of these facilities claim to almost never have a delinquent tenant. There are laws which the storage facilities must follow; However, no one is really enforcing what the storage facilities do. Especially, the smaller facilities in rural areas.
I have spoken with other facility owners that don't have auctions but personally invited me to come by and make them an offer on delinquent units.Some of these facilities have garage sales and sell the items individually. Others claim to just take the contents to the dump. Some facilities will hold an auction but if the storage unit doesn't sell at an appropriate amount, they will refuse the bid. I even know of one facility that files a public notice, but when you arrive, they start the bidding at what is owed in delinquent rent and moving costs (Usually $1200-2500). At this facility, they don't let you view the contents, they just hand you a itemized list of the contents. Since nobody in their right mind is going to pay that kind of money without inspecting the condition of the merchandise, the contents almost always revert back to the storage facility. This facility conveniently has a resale shop next door which happens to be operated by the facility owners wife.
-
Never heard or seen that one before. What they probable do is gather up all the good stuff, trash the junk, and hold a big auction piece by piece like once every 3 months or more.