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Rise in Foreclosures and Freddie Mac Listings Led to Storage Growth

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By : John Cutts    99 or more times read
While foreclosed property listings, including Freddie Mac listings, continue to rise in most areas of Texas, the business of self-storage is also growing. Homeowners hit by foreclosure often rent storage units where they keep their belongings while looking for another place to live or while preparing to relocate, resulting in more business for storage facility companies.

Foreclosure listings in McAllen and in the rest of the state continued to grow last year and more homeowners found the need to move out of their properties. According to local reports, a big number of these relocating households keeps most of their belongings in storage facilities and were unable to pay the monthly storage rent. Others have moved to other states and do not consider the contents of the storage units to be worth the long trip back.

This resulted in another type of auction business to emerge in the state. Aside from properties from Texas foreclosure listings being auctioned, several areas of the state have also seen increased number of auctions for storage unit contents. According to people who have experienced bidding in such auctions, items can range from valuable to simple but useful ones like sofas, mattresses and used clothing.

Just like properties that ended in foreclosure and Freddie Mac listings, mini storage companies can also foreclose on renters' storage units. Once a renter failed to pay the fees, storage facility operators can add late fees to the regular monthly charges and give renters a grace period under which they can make their rental payments current.

If renters failed to do so, the owner of the storage units can hold an auction to sell off the contents of the units after three months of non-payment. According to local storage facility owners, the process is a bit similar to auctioning off properties under listings of homes for sale.

For most people who lost their homes to foreclosures or to Freddie Mac listings, the items they usually store in the self-storage units are not of much value to them. That is why majority do not bother coming back for them when they have moved to another location, which gives rise to the storage auction trend in several areas of the U.S.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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