How To Buy Storage Units In Default
How To Buy Storage Units In Default
Self storage auctions are common in the storage industry and are typically open to the general public. A storage unit auction can be a great way to locate antiques and other unique items of interest for just a fraction of their cost. Storage auctions are held only as needed, which can make it difficult to find one in advance. CubeSmart Self Storage will provide as much advanced notice as possible of storage unit auctions across all facilities throughout the country so you can find auctions in your area as they occur.
When someone fails to pay the rent on a storage unit for three months straight, the storage facility seizes the unit and its contents. This may seem like it has nothing to do with you, but once you learn this information, it will definitely have something to do with you. Storage facilities simply auction the units off to random buyers. You can find live auctions in your area and attend them in person, or bid online through one of the popular auction sites. Keep in mind, this is essentially a form of gambling; while you may be able to make a lot of money on some of the units you buy, many of them will cost you money if the items inside turn out to be worthless.
Tip: The rules differ because every state has different laws regarding auctions and storage units. You typically are not allowed to touch the contents of an abandoned unit, enter an abandoned unit, or discuss bids with other attending bidders.
For many people, the reason they've put things into storage is because their life is in transition; in many cases, they've had some difficult times financially, and don't have a lot of living space in which to store things. But that can also mean they have trouble paying the monthly storage rental fee.
Sooner rather than later, you're likely to receive a letter from the storage company threatening to sell all of your possessions if you don't remit payment immediately. What should you do? This article will discuss your rights with regard to the storage company and what you can do to forestall an auction and get your goods back.
The thought of losing one's possessions is heartbreaking and frightening. Many people use storage units to hold irreplaceable items, such as family heirlooms and original legal documents, in addition to clothing, furniture, and so on.
If, however, you haven't paid your rent in the storage facility for a number of months, it is not uncommon for the facility to threaten to sell (or discard) your possessions, often via an auction. This is ordinarily legal, so long as the storage facility gives notice of your default (nonpayment) and follows other procedures laid out in its contract with you.
You'll want to research your state's law for limitations on what a storage company can actually do. The law might, for example, mandate that the storage facility notify you via a particular method (such as mail or email) or provide public notice of the upcoming auction. It is also likely to require a number of weeks waiting period between your default and any public auction, so as to give you time to pay off your debt and get your stuff back.
Now is also the time to review the fine print of your contract, starting with its definition of when you're in default. Expect to see something set between five and 30 days after payment was due. At the point of default, the contract might explain that you will be denied access to your storage unit altogether.
Storage facility auctions usually occur either on the site of the storage facility or in an off-site location. Public notice of the auction is given, and third-party consumers can attend and purchase your items. Indeed, many consumers pay special attention for these types of sales, since they can buy goods at relatively low prices.
The specific procedure for how your company would conduct this type of sale will depend largely on state law and the fine print of your rental agreement. Most likely, the agreement specifies exact