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Will this affect credit?

Posted by adellabedella (My Page) on
Mon, Mar 20, 06 at 16:37

To me, this is a hair brained idea. It might solve an immediate problem, but I think it's a bad idea for several reasons.

Some relatives (1 & 2) are supposed to clean out an old house of another relative so the house/estate can be put up for sale. The problem is that another individual (3) who grew up in the house has his junk stored there and won't move it out because he has no place to put it. Relatives 1 and 2 want to get a storage unit, pay for one month, and tell Relative 3 to assume the payments or move the stuff elsewhere. In all liklihood, Relative 3 will default on the storage area even with his junk in it and the landlord of the unit will be forced to auction/throw away the junk.

My question is won't a default on the storage unit ding the credit of whoever secures it initially?


Follow-Up Postings:

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RE: Will this affect credit?

adellabedella,

I owned a storage facility for 10 years. Whoever signed the lease with the facility will have their named turned into either a collection agency and/or a credit bureau. If your relatives rented the unit on behalf of someone else, it is the relatives that rented the unit, signed the lease (regardless of who owns the stuff) that is in breach of contract and that is who will ultimately get a mark on their credit. Incidentally, in the 10 years we owned our facility, we only had to sell off 2 units. Most folks paid up and moved out.


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RE: Will this affect credit?

tell r1&2 NOT to rent it for 3. if 3 defaults THEY will be responsible for the bill.

kimba00 may have had only a couple of folks in 10 years, but around here every other month each storage facility auctions off at least 10 units worth of stuff. my cousin and her husband had some stuff in storage and when they divorced each assumed the other would pay the fees until they went thru it. next thing they knew, they had no more stuff and both of them had a collection agency calling. the storage owner may be nicer than that, but they WILL get there money or report the lease holders.


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RE: Will this affect credit?

I think I would be telling relative 3 to get your stuff out or it is going to the dump.


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...affect credit?

Thanks, I totally agree with you guys.

This has dragged on for a couple of years. It's time to sell the house. It's costing everyone except Relative #3 money. He's been catered to most of his life and has never been forced into the responsibility of paying bills or holding a steady job. He expects to continue using the house as his personal storage facility. The rest of the family has tried to give him the house minus any debts against it. He doesn't want that.


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