Lien Sale
A lien sale in California is a legal process through which a lienholder (someone who has a legal claim against a property, often due to unpaid debts) can sell the property to recover the debt owed to them. In the context of vehicles, a lien sale typically occurs when the owner of a vehicle fails to pay certain debts or fees related to the vehicle, such as mechanic's fees, towing and storage charges, or unpaid parking tickets.
Here's how the process generally works:
- Notification:
The lienholder must notify the registered owner and any other interested parties (such as lenders) of their intent to conduct a lien sale. This notification usually includes details about the debt owed, the intent to sell the vehicle, and information on how to redeem the vehicle before the sale takes place.
- Public Notice:
After a specified period, if the debt remains unpaid, the lienholder must provide public notice of the impending lien sale. This typically involves publishing notices in newspapers or other relevant publications.
- Sale:
After fulfilling the notification requirements, the lienholder can proceed with the sale of the vehicle. The sale is often conducted through a public auction, where interested buyers can bid on the vehicle. The proceeds from the sale are used to cover the debt owed to the lienholder, with any surplus going to the vehicle owner.
- Transfer of Ownership: