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Betty · September 2019

Hi, I have a situation that I have never come across in my 8 years of being a property manager. I have a mechanic that rented space in my facility. He has not paid and I started the auction process. When getting the MSL reports from the DMV one of the cars has a lien on it. I have my form letter for customers but do not know how I should inform the cars owner and the lien holder of the upcoming auction. I have all of their information but not sure how to write the letter. Any suggestions will be appreciated.

ACorona · September 2019

Hi Betty, so it is not your responsibility to notify the car owner but it's very kind that you are doing so. In your letter I would just make it clear to them that they must wait until after the auction is completed to collect the car. It is up to your discretion to notify them of the auction date to bid on the unit or to get in contact with the person who won the bid on the unit. I hope this helps a little, I'm sure you'll have plenty of people chime in on this one.

MamaDuke7 · September 2019

That lien will supersede yours. You will need to notify the lien holder, but in order to get the vehicle, they would need to pay the balance due for the space. It just means you can't sell it to someone else at auction before they get the opportunity first.

ESS · September 2019

In Texas, as @ACorona stated, our lien trumps any other lien holder. If they would like to pay the past due balance, they may have the car back. If they don't want to, whomever the auction winner is, gets the car. We had this exact situation come up 2 years ago. The auction winner got a 2010 Mustang convertible WITH the keys in it! Best part is, it only needed a tune up

Write them a letter and let them know about paying the balance in full to retrieve the property...depending on your states statutes.

Orkocean · September 2019

Back in Pasadena we had a unit go with a 68 Dodge Charger in it, oh and 2 dirt bikes, tons of RC planes with 6+ foot wingspans, couple of nice fridges and tons of other stuff, 12x35 unit which was full. All of it went for a whopping $2,800...... Yeah in person auctions can SUCK.

Betty · September 2019

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

Faye · September 2019

Betty said:

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

To the car owner I have used the actual lien letter but address it to them. The Lien owner I do the same but I also try to call them.

MamaDuke7 · September 2019

Betty said:

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

I would just send a "courtesy copy" of the lien letter to them.

i43storage · September 2019

Betty said:

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

In my state, you can fill out a form with the DMV and they will tell you the car owner's name so you can contact them. I would STRONGLY suggest reading your state statute on this. In Wisconsin, auctioning a vehicle has its own set of rules.

Betty · September 2019

i43storage said:

Betty said:

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

In my state, you can fill out a form with the DMV and they will tell you the car owner's name so you can contact them. I would STRONGLY suggest reading your state statute on this. In Wisconsin, auctioning a vehicle has its own set of rules.

I have read Virginia's statute. I did go to the DMV and get the report called MSL report and it did have owners information and Lien holders information. I can't believe how the statute differs from state to state. In Louisiana I never had to check with DMV. I just auctioned and gave a letter stating that the car was bought at auction.

i43storage · September 2019

Betty said:

Thanks everyone. Any suggestions on how I should word the letter to the car owner and lien holder since they are not actually tenants?

We are required to simply give them a copy of the auction notice - just like we would the tenant - certified.

dbudgen · September 2019

In California, it's just easier to have the vehicle towed to a tow yard and let them deal with it. The report from the DMV can take up to 6 months to get. I would rather cut my losses, get ride of it and re-rent the space.

CVSSSTORAGE · September 2019

@dbudgen yes California is ridiculous

sonyawiprud · November 2019

dbudgen said:

In California, it's just easier to have the vehicle towed to a tow yard and let them deal with it. The report from the DMV can take up to 6 months to get. I would rather cut my losses, get ride of it and re-rent the space.

Is this legal? I have a delinquent tenant in an RV space, the company needs the space for upcoming construction work and we have tried to get the customer to take it out of here waiving all charges if he will just come get it. He keeps telling me he will get it soon.
My operations manual says I have to go through the DMV process, which I have never done before. I would rather have it towed if that's a a legal option. Let me know.

Orkocean · November 2019

sonyawiprud said:

dbudgen said:

In California, it's just easier to have the vehicle towed to a tow yard and let them deal with it. The report from the DMV can take up to 6 months to get. I would rather cut my losses, get ride of it and re-rent the space.

Is this legal? I have a delinquent tenant in an RV space, the company needs the space for upcoming construction work and we have tried to get the customer to take it out of here waiving all charges if he will just come get it. He keeps telling me he will get it soon.
My operations manual says I have to go through the DMV process, which I have never done before. I would rather have it towed if that's a a legal option. Let me know.

You would need to check with your state statutes regarding it as every state is different.

Eric_Lewis · December 2019

Another good source is to contact your state storage association. As members this may include advise on auction processes.

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