In Hard Times

I operate a home based business that assists homeowners in foreclosure to negotiate with their mortgage company to stop the foreclosure and keep the home from being sold out from under them. This has been a very worthy and valuable enterprise. We have helped many families through the loss mitigation process. There is no better reward than to help a family keep their home but for those who took advantage of the low interest rates to refinance, to over buy and wound up with an Adjustable Rate Mortgage (ARM) rising mortgage interest rates have created havoc with family budgets. A home payment that was $2000 per month is now slightly more than $3200 per month. There are nearly 50,000 homes going into foreclosure each month and that number is expected to take yet another sharp rise as more and more homeowners are squeezed by rising interest rates.

How will this impact the self storageindustry? When families are forced to down size will they sell the extra furniture or place it in storage in hopes that they will again have room for it? Will they be able to afford enough storage to hold onto these things and will more tenants have to let their goods go to auction to feed their families. Will we see the “discount” facilities with fewer amenities and more “bare bones” construction? Will we avoid the serious financial problems of the mid 1980′s?

As our economy runs through another seven-year cycle it will be exciting to watch the progress of self-storage and the changes that occur in the industry as the creative thinkers rise to meet the changes in home ownership.