Do I have to hold an Auction?
Yes. You do have to hold an auction. The law requires that on all possessory liens that a public auction be held on your property, or the property where the vehicle is located. An auction can be held a number of ways. The most common way is through a verbal auction. Prospective buyers bid against each other for the vehicle. The other common auction is a silent bid. Prospective buyers write down their bid and the vehicle goes to the highest bidder.
Do you have to sell the vehicle to the highest bidder if it does not cover the cost of the lien?
No. You basically place a bid on the vehicle for the amount that is owed. The vehicle may be sold for less than what is owed, but it must go to the highest bidder.
What if no one shows up for the auction?
If no on shows up for the auction and you have met the following criteria: Open for business, and a notice was posted at the court house. Then you become the proud new owner of the vehicle that you liened.
What happens if I receive more than what is owed on the lien?
The law requires that you send the registered and legal owner a certified statement on the amount received for the vehicle. The overage is to be taken to the county treasure, and the county will hold that money for no more than three years.
May I bid on the vehicle?
The amount that is owed to you at auction is your bid. The lien process is not so that you can retain possession of the vehicle. The lien process is a legal way that you can receive just compensation for your labor and storage. We recommend that you do not bid on any vehicles that you have a lien against.
How does the buyer get a title?
The certificate of foreclosure works just like a title. The buyer takes the certificate into DMV (OREGON) and files an Application for Title, within 4-6 weeks a new title will be issued.
What are the storage restrictions?
Oregon State Law requires that you notify the registered and legal owner within 15-20 days of starting to charge storage. They state your daily storage rate must be a “reasonable” amount- in our experience for a regular 2dr or 4dr vehicle does not go above $40 a day in storage.
Can I place a lien on a vehicle that is not in our possession?
No! You must have the vehicle in your possession to do a lien.
How do I hold the auction?
Make sure someone from your company is at your location during the specified time and date. If anyone shows up, you take bids. If there is a winning bid, you fill out the Certificate of Possessory Lien and give it to the winner to take to DMV.
Does our company have to be located in Oregon to place a lien on the vehicle in our possession?
Yes! We can only do liens for licensed companies within the state of Oregon. We are able to place liens on vehicles that are located in Oregon but registered in other states.
Do you process liens on boats/vessels?
Yes, we can now process liens on boats/vessels.