Storage lockers: Stuff to save and sell
June 30, 2008
I did not realize how much is going on in the lives of many Americans regarding storage lockers. Not that I necessarily should have been thinking about storage lockers.
For a short time I rented a storage locker to house my possessions. The lease on one apartment was up. I was planning on moving out of the area and didn’t want to renew, so I temporarily moved back in with my parents. Once I got a new job and apartment I got my stuff and stopped paying for storage.
I had assumed this was how storage worked for most people. You’re in some sort of transition and need a temporary place to keep your essential possessions.
Apparently this isn’t always the case.
There are people out there who are paying for storage simply because they have so much “stuff” that they don’t know what to do with it all. I know one of these people. He’s in his 30s and hanging on to toys and art projects from elementary school — along with a ton of other stuff he’s collected over the years. Most of it could go to the Goodwill or the trash bin.
M.P. Dunleavy addresses this topic in her latest article. It’s interesting to look at some of the numbers she cites as far as how much the storage locker business has expanded in the past couple of decades. It seems apparent that many of us simply have too much stuff.
(I will admit that I have too much stuff, and I’m trying to reduce the amount of unnecessary things I’m cramming into my home. I’m also not spending money every month just to store my things, which is important to note in these tough economic times.)
Having too much isn’t the only reason people are turning to storage.
A while ago I wrote about people selling their possessions in order to pay the bills and put gas in their cars. Yet another trend is emerging from the subprime mortgage meltdown and all-around tougher financial times: Storage auctions.
The New York Times ran this story about the increasing frequency of auctions at storage facilities. The auctions are held by the facility after the unit’s renter is delinquent on his or her payments for a certain period of time.
Bidders get barely a glimpse into the storage unit before they place their bids. Only after someone wins the bid do they get to find out exactly what’s inside.
For people who put their items into storage after a foreclosure, I would imagine it would be particularly difficult to see what amounts to nearly all of your possessions auctioned off, often for a minimal price.
Some people have even been found illegally living in their self-storage units after losing their homes.
On the flip side, some people are turning another’s misfortune into profit. Many bidders wade through their new items and resell them at flea markets or on online auction sites.
Do you pay every month to store “stuff?” What do you think about self-storage auctions? Have you ever attended this type of an auction? Have you ever had your possessions sold?
Pets feel the pinch of foreclosure
June 27, 2008
Foreclosures and rising prices aren’t just taking a toll on people. Pets are feeling the pinch, too.
Shelters across the country are overflowing with pets that were either: a) abandoned and left on their own when their owners lost their homes; b) given to the shelters by owners who lost their homes; c) given to shelters by people who simply can’t afford to care for them anymore.
Many people who must move are left trying to decide what to do with their pets. USA Today wrote about this problem.
Some pet owners are apparently afraid putting their animals, especially older animals, in a shelter will lead to their being euthanized. Instead these well-intentioned, if not misguided, people are leaving their pets in abandoned houses with food and water, or they are turning their pets loose. The USA Today story explains the problems with these options, both of which end up being worse than a shelter.
These stories in the Atlanta Journal Constitution and the New York Times also address the problem of homeless pets.
Some people simply can’t afford to care for their pets. Other people are renting homes or apartments and aren’t allowed to keep their furry friends.
Shelters are overflowing with pets. Many pets are being euthanized because shelters have too many animals to care for and no other option. Some of the stories of the pets, and their families, are heartbreaking. It’s bad enough that people have lost their homes, but then they have to give up pets that they regard as family members.
I’m asking myself what can be done about this situation.
If you are thinking getting a pet, first and foremost look at your budget and make sure you can afford it. Pets can be walking money pits. Make sure you not only have the financial resources for the initial costs and food every month, but also for any emergencies that may arise.
If you decide that you can comfortably afford a pet, consider adopting a pet from a shelter.
When I decided to get a cat several years ago I thought about getting a pure bred cat. Then I saw a Humane Society kitten that I couldn’t resist. He’s a little mischief-maker, but he’s a wonderful and entertaining member of our household. And I feel good knowing that I provided a home for an animal in need.
Check out shelters in your area and see if there’s a future member of your family just waiting for a home.
Oh, I should add one important note for anyone considering a pet … Please make sure that the pet you choose fits with your lifestyle. Too many pets also end up in shelters because someone purchased a particular breed of animal on a whim without researching what might fit in best with their family. Then when the dog is snappish or the cat scratches furniture, it ends up right back in the shelter.
More housing woes: What you can do
June 11, 2008
There appears to be more bad news in the housing market. According to some industry analysts, the sub-prime mortgage meltdown is going to get worse by next spring when hundreds of thousands of adjustable rate mortgages are going to reset. The resetting of those loans is predicted to cause a new wave of foreclosures.
This story on Yahoo Finance details the problem. The story also spotlights one borrower who is sinking under the weight of her option ARM. This borrower’s attitude towards her home loan was a bit dismaying. She has decided that foreclosure is her only option.
Here’s what the story says about her situation:
“The option ARM was initially a blessing and then a curse for Deborah Shaw, a 52-year-old systems analyst for
Shaw planned to avoid a recast by selling the house in a couple of years, but the housing slump changed everything.
Shaw now thinks her loan has already recast, which means that her monthly payment would more than double. Shaw doesn’t know for sure, because she stopped answering her lender’s daily phone calls and, since April, stopped making payments entirely. She says foreclosure is her only option.”
Ms. Shaw’s first mistake was ignoring calls from her lender. Her second mistake was that she allowed herself to be completely in the dark about what is going on with her mortgage. Her third mistake was to give up making payments altogether.
Possibly her biggest mistake was that she threw in the towel and apparently hasn’t attempted to get help.
If you are a homeowner who is behind on your mortgage or who is concerned that you might fall behind, please get help right away.
In addition to the Hope Now hotline, there are many reputable local agencies that offer housing counseling to those who are in danger of losing their home.
At Advantage we have certified counselors trained to help people with housing issues. Our counseling services are free, and we work with the U.S. Department of Housing and Urban Development and the Pennsylvania Housing Finance Agency to help homeowners.
You do not have to wait until you have received a foreclosure notice to call for help. Your best chance to avoid foreclosure or falling behind on your mortgage payments is to find assistance as soon as you realize you are struggling.
Foreclosure is only inevitable if you give up and don’t even try to work out an arrangement with your lender.
Scammers pretend to help those facing foreclosure
May 29, 2008
Homeowners who are facing foreclosure have become vulnerable targets for scammers.
According this May 23 article on Forbes.com, delinquent homeowners are getting tricked by brokers who promise to save them from foreclosure, but ultimately make of with thousands of dollars in fees or what home equity was left.
If you, or anyone you know, is facing financial difficulties and is in danger of losing his or her home, please make sure you know what kind of a company you are dealing with before you sign anything.
Surely you’ve heard the saying, “An ounce of cure is worth a pound of prevention.” This is one of those times where that saying definitely has meaning. There are some easy steps you can take to ensure you are dealing with a reliable company.
Research the company. Check their web site and any brochures or information they can offer. Ask questions. Ask for references from other customers who have used the company’s service. If they seem to avoid giving specific answers or references, you may want to reconsider doing business with that company.
Make sure you get all the paperwork involved with your potential transaction. Read all of the fine print and ask questions about anything you do not fully understand. Do not be afraid to ask questions. And do not sign anything that you don’t understand.
Check the company with the Better Business Bureau and your state Attorney General’s office. See if there are any complaints against the company and if, or how, those complaints were resolved.
Also, check with HUD, the U.S. Department of Housing and Urban Development, which can direct you to reliable, HUD-approved agencies in your area that offer housing counseling. You can also call HUD to find an agency at (800) 569-4287.
Rely on your gut instinct. Remember the old adage of, “If it seems too good to be true, it probably is.” If something feels wrong to you or seems too easy, take a step back and reassess your situation.
Remember there are reliable companies that can help you with your housing situation. Non-profit agencies like Advantage CCS (which happens to be HUD-approved) offer free housing counseling, including loss mitigation, for those who are facing foreclosure.
One other thing that I want to stress: It’s never too soon to get help. If you find yourself struggling to make your mortgage payments, don’t wait until you’re receiving foreclosure notices to call for help. Call for help at the first sign of a problem. Don’t ignore the problem, and don’t ignore paperwork from your lenders.
Self-storage items sold to highest bidder
May 16, 2008
On Wednesday I wrote about people selling their possessions in order to pay the bills and put gas in their cars. Yet another trend is emerging from the subprime mortgage meltdown and all-around tougher financial times: Self-storage auctions.
The New York Times ran this story about the increasing frequency of auctions at self-storage facilities. The auctions are held by the facility after the unit’s renter is delinquent on his or her payments for a certain period of time.
Bidders get barely a glimpse into the storage unit before they place their bids. Only after someone wins the bid do they get to find out exactly what’s inside.
For people who put their items into storage after a foreclosure, I would imagine it would be particularly difficult to see what amounts to nearly all of your possessions auctioned off, often for a minimal price.
Some people have even been found illegally living in their self-storage units after losing their homes.
On the flip side, some people are turning another’s misfortune into profit. Many bidders wade through their new items and resell them at flea markets or on online auction sites.
Share your thoughts about self-storage auctions. Have you ever attended this type of an auction? Have you ever had your possessions sold?
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