Storage Auctions

Who keeps the difference between what is owed and what the auction brings?

I was at a storage auction yesterday. I didn't buy anything but I did ask a question of one of the organizers: who keeps the difference between what the auction brings and what is owed on the unit? If the unit owes $200 and the auction brings $500, who get the $300 difference? Is it returned to the renter of the unit or is it kept by the storage company? Sure, they have expenses selling units when renters default, but the auctioneer gets paid from the 10% buyers premium. I was told "We don't give out that information." That pretty much tells me that the storage company keeps everything.

Offline alloro

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The extra is supposed to go to the original renter. The purpose of the auction is for the storage facility to recoup their loss via the auction, not profit from it.

Offline Travis

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Well, it depends on which state the lien sale occurs in. In Texas, the storage facility can keep the amount owed in back rent, late fees and expenses like the cost to place a legal notice in a newspaper. Whatever is left is supposed to be returned to the tenant. The storage facility must hold the funds for 2 years, after which the funds revert to the storage facility.

Do all storage facilities make every effort to contact the tenant about the money owed? Probably not. It's in their best interest not to.

Offline Alias300

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Washington is the same.
Facility keeps back rent, cost (Ad, legal, certified mail...) and allowed a "Admin Fee" to cover expenses of personell doing paper work, inventory, running auction.....  Heard its up to $150 but not sure.

The rest is held in a trust account and previous owner can claim.   If not claimed its sent to the states Dept. of Revenue to be held in trust for whatever your states statues determine.  3-10 years. 

You can see if you have anything in Washington at claimyourcash(dot)org

Texas is window(dot)state(dot)tx.us/up/

Those are the only two I know.
Anywhere else just google unclaimed property and <state>.   Should list out your treasurers office.....


Offline Travis

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Alias...thanks for that link.  :-* I just found $160 that Progressive Insurance owed me from 1999. It sucks that I have to fill out a bunch of forms and wait 6-8 weeks, but whatever.

Offline Alias300

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Nice.   Glad I could be of assistance. 

Funny.  So many people have money from progressive.
Guess they don't bother evn trying to give refunds.  Just hold it then turn over to state.
Must be a cost thing.  Cheaper.

I fought with them for 6 months trying to get back money fom canceling insurance on a car I sold.
They denied...gave run around.....two years later it was in treasury. 


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