Regarding California Lien Laws: how long do you allow someone to go before you auction the unit?

sonyawiprud

Our company has always had a 90 day policy, we do a 30 day pre-lien and then a 45 day Lien notification but we are told to give it another 45 days from there, it has come to my attention that we are doing it wrong, according to the law we only have to wait until they are 58 days late to sell? Can anyone tell me how they conduct their Lien process?

MamaDuke7

14 Days past due - Preliminary Lien
30 Days past due - Notice of Lien
45 Days past due - Cut the lock (can be done as early as the day after the lien notice is mailed)
60 Days past due - Auction

sonyawiprud

MamaDuke7 said:

14 Days past due - Preliminary Lien
30 Days past due - Notice of Lien
45 Days past due - Cut the lock (can be done as early as the day after the lien notice is mailed)
60 Days past due - Auction

Hi MamaDuke,
Thanks for the info, are you on FOM or Anniversary for your tenants? I am running into a math issue since I am on Anniversary and trying to figure out best practice for this. So far I designed a chart that says basically if you are 30 days late on any day in March then auction is April 30th, which means some people get a lot more days grace than those that are 30 days late on March 31st. 
We also just found out that as public notice is concerned we only have to list it for a week in a newspaper and a week on a publicly accessed website (auction sites work great for this). Are you aware of this new rule? Do you use this application to place legal ads? I'm seeing where  Storage Treasures and Storage Auctions is now integrated with Sitelink and will populate your past due tenants into ad form for public notice. 
Any advice is much appreciated, 
Sonya

MamaDuke7

I am Anniversary Date.  I don't pre-set auction dates because I only do 1 or 2 per year.  I let Sitelink tell me when it's time for each step of the process since it's all set up.  Then when I have about 10 units ready to sell, I'll set the date.  So I do everything through the lock cut and then wait until there are enough spaces to bother placing an ad.

And yes, I love the new rule as it cuts the ad budget in half!  I use Storage Treasures, but don't integrate it because I don't always sell everyone if there are specific circumstances for someone that I may give more time.  (I have a LOT of quite elderly and therefore, things happen!)

sonyawiprud

MamaDuke7 said:

I am Anniversary Date.  I don't pre-set auction dates because I only do 1 or 2 per year.  I let Sitelink tell me when it's time for each step of the process since it's all set up.  Then when I have about 10 units ready to sell, I'll set the date.  So I do everything through the lock cut and then wait until there are enough spaces to bother placing an ad.

And yes, I love the new rule as it cuts the ad budget in half!  I use Storage Treasures, but don't integrate it because I don't always sell everyone if there are specific circumstances for someone that I may give more time.  (I have a LOT of quite elderly and therefore, things happen!)

So you are not required to set an auction date on the lien notice? I know it's an option, and our company uses it, but we use it to inform the customer of their pending loss and to set the auction.  How do your customers know when their last day to pay is? We just started using Storage Treasures and we're getting ready to have them integrate the delinquencies as well. I just feel like there has to be an easier way to do this and I can't see it. Just setting auction dates is difficult, we have to see if they are 30 days late on the 1st then they go into the following month's auction on the 30th, allowing them almost 90 days, but then if someone's rent is due on the 30th, once they are 30 days late they would go in the following month's auction and only have 60 days to pay before auction. 
Our late event schedule is:
10 days past due-late fee and late letter. 
30 days past due- pre-lien notice and another fee. 
45 days past due- lien notice and another fee. 
58 days past due- lock cut fee. 
on or around 90 days late-Auction. 

such a mess!


 

MamaDuke7

sonyawiprud said:

MamaDuke7 said:

I am Anniversary Date.  I don't pre-set auction dates because I only do 1 or 2 per year.  I let Sitelink tell me when it's time for each step of the process since it's all set up.  Then when I have about 10 units ready to sell, I'll set the date.  So I do everything through the lock cut and then wait until there are enough spaces to bother placing an ad.

And yes, I love the new rule as it cuts the ad budget in half!  I use Storage Treasures, but don't integrate it because I don't always sell everyone if there are specific circumstances for someone that I may give more time.  (I have a LOT of quite elderly and therefore, things happen!)

So you are not required to set an auction date on the lien notice? I know it's an option, and our company uses it, but we use it to inform the customer of their pending loss and to set the auction.  How do your customers know when their last day to pay is? We just started using Storage Treasures and we're getting ready to have them integrate the delinquencies as well. I just feel like there has to be an easier way to do this and I can't see it. Just setting auction dates is difficult, we have to see if they are 30 days late on the 1st then they go into the following month's auction on the 30th, allowing them almost 90 days, but then if someone's rent is due on the 30th, once they are 30 days late they would go in the following month's auction and only have 60 days to pay before auction. 
Our late event schedule is:
10 days past due-late fee and late letter. 
30 days past due- pre-lien notice and another fee. 
45 days past due- lien notice and another fee. 
58 days past due- lock cut fee. 
on or around 90 days late-Auction. 

such a mess!


 

Ours simply says it will be sold AFTER the date that the lien expires.  Then we send them a copy of the newspaper ad with their name highlighted so they know the last date they can pay.

sonyawiprud

MamaDuke7 said:

sonyawiprud said:

MamaDuke7 said:

I am Anniversary Date.  I don't pre-set auction dates because I only do 1 or 2 per year.  I let Sitelink tell me when it's time for each step of the process since it's all set up.  Then when I have about 10 units ready to sell, I'll set the date.  So I do everything through the lock cut and then wait until there are enough spaces to bother placing an ad.

And yes, I love the new rule as it cuts the ad budget in half!  I use Storage Treasures, but don't integrate it because I don't always sell everyone if there are specific circumstances for someone that I may give more time.  (I have a LOT of quite elderly and therefore, things happen!)

So you are not required to set an auction date on the lien notice? I know it's an option, and our company uses it, but we use it to inform the customer of their pending loss and to set the auction.  How do your customers know when their last day to pay is? We just started using Storage Treasures and we're getting ready to have them integrate the delinquencies as well. I just feel like there has to be an easier way to do this and I can't see it. Just setting auction dates is difficult, we have to see if they are 30 days late on the 1st then they go into the following month's auction on the 30th, allowing them almost 90 days, but then if someone's rent is due on the 30th, once they are 30 days late they would go in the following month's auction and only have 60 days to pay before auction. 
Our late event schedule is:
10 days past due-late fee and late letter. 
30 days past due- pre-lien notice and another fee. 
45 days past due- lien notice and another fee. 
58 days past due- lock cut fee. 
on or around 90 days late-Auction. 

such a mess!


 

Ours simply says it will be sold AFTER the date that the lien expires.  Then we send them a copy of the newspaper ad with their name highlighted so they know the last date they can pay.

Wow! Great idea!!