A lien sale in California is a legal process that allows a person or business (often a towing company, storage facility, or mechanic) to sell a vehicle or other property to recover unpaid charges, such as towing, storage, or repair fees. After specific legal requirements are met, the property can be sold at auction to satisfy the debt.
Here’s a general outline of how the process works for vehicles:
Eligibility: You must have possession of the vehicle, and the charges (for storage, towing, or repairs) must be unpaid. The vehicle must not be stolen or involved in a legal dispute.
Application: File a “Lien Sale Application” (REG 138) with the California Department of Motor Vehicles (DMV). You’ll need to provide details about the vehicle, your claim, and pay a filing fee.
Notification: The DMV will review your application and, if approved, send you authorization to proceed. You must then notify the vehicle owner and any lienholders (such as a finance company) via certified mail, giving them a chance to pay the debt and reclaim the vehicle.
Public Notice: If the owner/lienholder does not respond within the notice period (usually 10-30 days), you must publish a public notice of the lien sale in a local newspaper.
Auction: After legal notice periods, you may sell the vehicle at a public auction. The auction must be open to the public.
Proceeds: The proceeds from the sale are first used to cover your charges. Any remaining balance must be returned to the vehicle owner.
Title Transfer: After the sale, you can transfer ownership to the buyer using DMV forms. The buyer will apply for a new title at the DMV.
Do you have a vehicle with lien sale paperwork and need a reliable buyer? We specialize in purchasing cars with lien sale documents, offering a simple and efficient process for sellers. Whether your car has gone through a lien sale or you’re facing challenges with paperwork, our experienced team can help. Receive a fast, fair offer and enjoy a hassle-free transaction from start to finish. No hidden fees, no delays—just a straightforward way to sell your car with lien sale paperwork in California. Contact us today to get started!