The California lien sale laws cover many topics, from notice of pending sale to fees associated with it. There are also several important issues to be aware of, such as opposition from the legal owner or auto lender. Ultimately, any excess monies should be remitted to the Department of Motor Vehicles. This article will help you navigate these laws. So, what are some of the most common issues associated with lien sales in California?
Notice of a Pending Lien Sale
A Notice of a pending lien sale under the California lien sales laws requires that the lender notify the vehicle’s registered owner. This notification must contain full information about the vehicle, including its title, license number, and state of registration. If a lienholder has an interest in selling the vehicle, he or she must apply to the California Department of Motor Vehicles to sell the vehicle. If the lienholder is unsuccessful, a person can request a hearing in court.
Once this process is complete, the lender will mail a packet of documents to the plaintiff. The California lien sale abandoned vehicle packet will also include any required information. The notice will also include a link where the lien buyer can access the notice and obtain more information. The lien sale packet will also have a list of deadlines and other relevant information. This information will be necessary to make the sale process run smoothly.
A person who has a personal interest in the vehicle may oppose the sale. They must file a Declaration of Opposition in the time period permitted by law, which should be included in the Notice of Pending Lien Sale. The opposer must then be served at the address listed on the Declaration of Opposition. This can be done with the help of a marshal or process server.
A Notice of a pending lien sale under the California lien sale laws should be sent to the debtor a few days before the auction. The lien holder will take possession of the vehicle if no buyer is found. As a result, the amount owed will be increased. The debtor must pay the additional costs associated with a lien sale. The lienholder is required to send several notices of a pending lien sale before the auction.
The plaintiff asserts that the lienholder had an obligation to determine liability. However, she points out that there was no such language in section 3068.2, indicating that the lienholder assumed that there was an exemption from liability. Therefore, the lienholder must investigate this possibility before attempting to collect. So, if the plaintiff does not receive a notice, she should appeal. This decision will likely be overruled by the Court of Appeals in the case.
Fees Associated with a Lien Sale
In California, the lienholder may charge a fee to prepare the vehicle for a lien sale. The fee cannot be more than $100 for vehicles valued at over $4000. The lienholder may not charge a lien processing fee for a vehicle 72 hours prior to the sale. If the lienholder refuses to pay the lien processing fee, it will be considered a breach of contract and must be paid.
If a vehicle is worth more than four thousand dollars, the process of obtaining a lien sale date can take up to 40 days. The lienholder must also pay for advertising in a local newspaper, which can cost as much as $200. In California, these fees must be paid by the lien owner. The lienholder must also send notice to interested parties. If the vehicle is sold to a licensed junkyard, all fees are waived.
Depending on the type of lien, the state will have different fees. For instance, the lien sale process may require the seller to pay a fee of $50 to $150 for filing the natural hazard disclosure report. This document will detail any environmental hazards that may pose a risk to the buyer, including airplane noise. In addition to the application fee, lien sale fees may also include a recording fee. However, if a lien sale is not the first time you’ve had to pay a lien, you may not be able to get a good price for the property.
If you’re a California resident, the fees associated with a lien sale can be steep. It’s better to pay 2% to avoid paying 9% in interest. But remember, lien sales are not for everyone. Even if you’re in a situation where you’ve fallen behind on payments, you can still remove your property from the sale by making payment arrangements. Depending on the type of lien, you may need to follow special procedures. For instance, the procedure for lien sales on vehicles and self-storage units may differ.
Opposition by a Legal Owner
To avoid foreclosure, the legal owner of a vehicle can oppose a lien sale. To do so, he or she must execute and return a Declaration of Opposition to the DMV within 10 days of receiving the lien sale notice. If the legal owner does not sign the Declaration, the lien sale notice will be sent to the legal owner’s DMV record address, usually a post office box.
The legal owner/auto lender may also oppose the lien sale on the basis of the limited attorneys’ fees provision. However, the fees cannot exceed the value of the vehicle. A legal owner/auto lender should carefully examine the fee claim before making a decision. Failure to do so could result in the loss of the vehicle. Attorneys Scott J. Hyman and An Le, two of the most experienced California attorneys in automobile lien sale matters, can advise you on your options.
The lien claimant may receive a portion of the proceeds of the lien sale. If the lien claimant is unsuccessful in recovering the full amount of the lien claim, the remaining funds from the sale are given to the DMV. If the lien claimant is unsuccessful in obtaining the money from the lien sale, he or she may file a lawsuit to obtain reimbursement. If the lienholder is successful, the declarant will be liable for any costs associated with the lawsuit.
Remit Excess Monies
Remitting excess monies from lien sales to the Department of Motor Vehicles is a requirement under California lien sale laws. It helps the DMV to keep its funds in order. In addition, the DMV must charge a $1.00 fee for every vehicle sold. However, the fee cannot exceed $2,500 per dealership each calendar year. However, some states are different, and the specifics may vary.
When the vehicle is sold, lien sale documents are delivered to the purchaser. The purchaser has five days to submit the documents to the appropriate authorized field office. The remaining monies from the lien sale must be remitted to the Department of Motor Vehicles, located at 2415 1st Ave., Sacramento, CA 95818. The Department of Motor Vehicles requires a Certificate of Lien Sale along with the excess monies.
