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A lien sale is the sale of the claimor a holdplaced on an asset to satisfy an unpaid debt. Typically, lien sales are conducted as public auctions, and the lien is on real estate, automobiles, and other personal property.

The car you purchase has a lien on the title until you completely pay off the car. Not only does a lien act as insurance for a lender, but a lien also allows a creditor to repossess your car if you default on your loan. A lien is a right against property or a legal claim, according to The Balance.

Go to the Department of Motor Vehicles (DMV) location or the state authority that issues vehicle titles. Obtain a title application. Give the application and the title to the clerk.

1Remove and destroy the license plates.2Submit a completed Notice of Transfer and Release of Liability (REG 138) to the department within five days of the sale.3Complete a Certification of Lien Sale for Vehicles Valued $4,000 or Less (REG 168A).

The easiest way to sell a vehicle with a lien is to conduct the sale at an auto dealership, particularly if the car is going to be a trade-in. Dealers work directly with the lien holder listed on the title, which is usually a credit union or a bank, to facilitate the transfer of ownership.

Can someone stop my lien sale? YES. Any person known to have an interest in the vehicle may stop your lien by filing a Declaration of Oppisition with the California Department of Motor Vehicles within the timeframe allowed by law (Typically within 10 days of mailing the Notice of Pending Lien Sale.)

Remove and destroy the license plates. Submit a completed Notice of Transfer and Release of Liability (REG 138) to the department within five days of the sale. Complete a Certification of Lien Sale for Vehicles Valued $4,000 or Less (REG 168A).

Assignment of Operator's Liens

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After the sale the lienholder must:

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