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Won bid then denied purchase

Won bid then denied purchase
« on: June 19, 2012, 03:37:23 AM »
Hello. I just started buying storage units and getting some really great deals. I have run into a problem and that is twice I have won the bid and then was inform that they could not release the units for sale. Someone told me if they go over what is owed on the units that they get nervous and do not wish to get sued. But the last one said I could always come back and bid again next month if he doesn't pay on it. What is the deal and laws to such things? I am in California. Can they do this and if so maybe it's time not to go to their auctions again. Any help would be greatly appreciated. Thank you

Offline Cobia

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Re: Won bid then denial purchance
« Reply #1 on: June 19, 2012, 07:15:04 AM »
Hello. I just started buying storage units and getting some really great deals. I have run into a problem and that is twice I have won the bid and then was inform that they could not release the units for sale. Someone told me if they go over what is owed on the units that they get nervous and do not wish to get sued. But the last one said I could always come back and bid again next month if he doesn't pay on it. What is the deal and laws to such things? I am in California. Can they do this and if so maybe it's time not to go to their auctions again. Any help would be greatly appreciated. Thank you

I have NEVER heard of a no sale because the bid was too HIGH!! Movieman will have to chime in as to the California laws and the rationale behind these denial of sales.

Around here, if that happened its because somehow you managed to outbid the "shill" that is working for the storage facility to win the unit on their behalf, which in that case you probably WAY overbid on the units, and it may be a blessing in disguise that they didn't complete the sale.

Offline MovieMan

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Re: Won bid then denial purchance
« Reply #2 on: June 19, 2012, 10:07:21 AM »
I have NEVER heard of a no sale because the bid was too HIGH!! Movieman will have to chime in as to the California laws and the rationale behind these denial of sales.


Well, I have heard of a no sale because bid was too high...from Public Storage here in California.

Maybe a year ago PS had a policy that if a bid was higher than $1,000 the auction for that unit would stop and it would go up for sale again the next month (unless the former lkr owner paid up...one last chance).

Apparently the rationale on this was that PS would then be adding on another month of non-payment fees to the frm lkr owner's deadbeat account....AND  the thought was that if (at the current auction) the former owner only owed $500 on the bad account that they would be sending him the balance of the amount over that $500 and they didn't want to do that !  (this from a former regional manager).

ANYWAY, they no longer do that. The locker I bought May 9, 2012 for $1900 was at a Public Storage. I actually talked to the frm lkr owner and he DID GET that overage from the sale of his locker. He owed $900 and got the $1K overage from PS. He said he wanted to use some of that refund to buy some of his stuff back, but of course he never did. He and his wife are living in a weekly/monthy rate motel.

*****

Some years ago (maybe 5) at an Extra Space, I paid $800 for a locker and got the number of the frm lkr owner to see if he wanted to buy back some of his better tools. He thought he was hot s**t since he told me he only owned $400 and would be getting a $400 refund. He also said "Good luck selling my Mac and Snap-On tools; they all have my name etched on them."  I told him that was not a problem for my buyers..and it wasn't. He got his $400 overage back and I tripled my investment so we were both happy.


In California (and many states) that is the case. Frm lkr owner gets any overage over what was due. If they can't find the frm owner that money stays in an escrow account for one year and then goes to the state/county.

I imagine at a mom/pop facility that money finds its way somewhere else !

Re: Won bid then denial purchance
« Reply #3 on: October 27, 2012, 04:39:15 PM »
I think I know what happened. If you read the California law, the storage facility can only recoup the rent owed, plus expenses (newspaper filings, certified postage) in addition to the auctioneers expenses (This is why some places charge a 10% broker fee). The storage facilities DO NOT MAKE A PROFIT! They simply get rid of the locker and get a new paying customer. Any extra profit (if there is any) goes back to the delinquent locker owner! This person has up to a year to claim any extra money, otherwise it goes to the county.

Say I am 3 months late and owe $750 in rent. Say the storage facility pays $50 for newspaper filings and postage to tell me my unit is going to auction. Say I don't answer and the unit gets auctioned. Say The auction charges $100 to facilitate the auction, in addition to taking 25%. The unit sells for $2,000! The auctioneer gets $600 (25%=$500 plus the $100 fee), the facility gets $800 ($750 rent + $50 expenses). There is still $600 available! I can claim that money from the auction of my locker for up to one year! The facility legally has to pay me that money or I can take them to court! If I don't claim that money, the facility has to turn the money over to the county or the state (forget which one). It's easier to let the fees accumulate for a couple of months so the storage facility doesn't have to give me the profit or turn it over. They can write the loss off and be done with it.



Re: Won bid then denial purchance
« Reply #4 on: January 07, 2013, 06:26:16 AM »
I think I know what happened. If you read the California law, the storage facility can only recoup the rent owed, plus expenses (newspaper filings, certified postage) in addition to the auctioneers expenses (This is why some places charge a 10% broker fee). The storage facilities DO NOT MAKE A PROFIT! They simply get rid of the locker and get a new paying customer. Any extra profit (if there is any) goes back to the delinquent locker owner! This person has up to a year to claim any extra money, otherwise it goes to the county.

Say I am 3 months late and owe $750 in rent. Say the storage facility pays $50 for newspaper filings and postage to tell me my unit is going to auction. Say I don't answer and the unit gets auctioned. Say The auction charges $100 to facilitate the auction, in addition to taking 25%. The unit sells for $2,000! The auctioneer gets $600 (25%=$500 plus the $100 fee), the facility gets $800 ($750 rent + $50 expenses). There is still $600 available! I can claim that money from the auction of my locker for up to one year! The facility legally has to pay me that money or I can take them to court! If I don't claim that money, the facility has to turn the money over to the county or the state (forget which one). It's easier to let the fees accumulate for a couple of months so the storage facility doesn't have to give me the profit or turn it over. They can write the loss off and be done with it.

Does this mean if i rent and seed a locker with a few almost hidden high value looking items and a bunch of boxes of trash and some fool buys it for $2000+ i can make money.

now i know where to get rid of a couple old safes i have plus the old 1974 Mercedes setting junk in my yard.
i can cover the car with a camo parachute and leave just the tires with the Mercedes hub caps showing. :) :) :) :) :) :P >:( 

Offline rulesforrebels

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Re: Won bid then denial purchance
« Reply #5 on: January 08, 2013, 04:23:28 PM »
when stuff like this happens it always makes me think that somoene has an inn with the facility manager and is going to get the unit after the auciton

Re: Won bid then denial purchance
« Reply #6 on: February 22, 2013, 01:37:04 PM »
I've had "canceled sells" do to the owner coming in during the auction and paying.  Until you pay for the unit some places will allow that.  We also have one location that has gotten greedy.  They do silent bids.  One of the newer auction guys I know was told he won a unit.  Got a call back 3 hours or so later saying he didn't get the unit.  The owner of the facility decdied to keep the unit.  I suspect it will be back on sale in a few months.

Re: Won bid then denied purchase
« Reply #7 on: February 23, 2013, 12:19:55 PM »
Ive had a couple customers pay up their units after i won them but before we got back to the office to pay . Ive seen 2 units at public a year or 2 ago get pulled because they went to high

LOL I saw one unit sell for $2500 or so get pulled , and sell the following month for $ 450 same guy won it both times

Re: Won bid then denied purchase
« Reply #8 on: February 27, 2013, 10:39:43 AM »
I'm sure most would alloro but this place is a silent bid, have to wait an hour or more for a "phone call", and they put the lock back on after each view.  So when you win they still have time to pull it from you if they want.  Most people have gotten fed up with them.  Maybe why they only do it twice a year.  So many units you almost have to go look if no other auctions that day.

Re: Won bid then denial purchance
« Reply #9 on: November 24, 2013, 08:31:26 PM »
Does this mean if i rent and seed a locker with a few almost hidden high value looking items and a bunch of boxes of trash and some fool buys it for $2000+ i can make money.


I thought unpaid units went against your credit rating. While appealing to give the shaft to wealthy storage wars buyers like Barry Weiss, the damage to your credit rating might not be worth the few thousand dollars you get for the fake units. 

Offline alloro

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Re: Won bid then denied purchase
« Reply #10 on: November 25, 2013, 09:23:23 AM »
the damage to your credit rating might not be worth the few thousand dollars you get for the fake units.

Unless their credit rating wasn't all that good to begin with! OTOH, if their credit is good, and they stage say 10 units at 10 different locations, at $2K each that's $20K. Then you take the profits, write to the 10 locations offering to make things right. If they refuse you can use the written letters to have the blemishes removed from your credit history.

Offline bwd111

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Re: Won bid then denied purchase
« Reply #11 on: November 25, 2013, 09:52:52 AM »
Rules are rules  :D

Offline Travis

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Re: Won bid then denial purchance
« Reply #12 on: November 25, 2013, 10:11:44 AM »
I thought unpaid units went against your credit rating. While appealing to give the shaft to wealthy storage wars buyers like Barry Weiss, the damage to your credit rating might not be worth the few thousand dollars you get for the fake units.

I don't think it would effect your credit. The proceeds of the sale are first used to satisfy your debt to the facility. Any excess would then be yours (depending on what state you live in.)

Offline alloro

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Re: Won bid then denied purchase
« Reply #13 on: November 26, 2013, 10:07:08 AM »
I don't think it would effect your credit.

Some facilities are real pricks about this and do report delinquent tenants to credit bureaus.

Offline bwd111

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Re: Won bid then denied purchase
« Reply #14 on: November 26, 2013, 10:08:40 AM »
True blue there


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