1
New to Storage Auctions? / Re: Won bid then denial purchance
« 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.
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.