Abandoned Vehicle Lien Sale Process
1. When May I Begin My Lien Sale?
If your lien is for automobile dealer, repair shop, wrecker service, or for
some other reason you may start your lien 60 days after the vehicle has been
in your possession or repair work has been completed.
2. How much storage should I charge?
Storage rates are not regulated by the state of Alabama. If you are a
business who makes it a practice to regularly store vehicles, your daily
storage rate should be clearly posted within your customer's view. A lien
sale will typically provide you with no more than 60 days of storage at your
posted rate. However, if you were in contact with the owner within the first
30 days and the owner knew the whereabouts of the vehicle, full storage
charges can be enforced.
3. Can someone stop my lien sale?
YES. Any person known to have an interest in the vehicle may stop your lien
by filing a Application of Hearing Abandoned Motor Vehicle with the circuit
court of the county of which the vehicle is to be sold within the timeframe
allowed by law (Typically within 10 days of mailing the Notice of Pending
Lien Sale.) An Application of Hearing Abandoned Motor Vehicle is (and must)
be included with the Notice of Pending Lien Sale we mail to all Registered
Owners, Legal Owners and Interested Parties.
4. What if someone stops (or opposes) my lien sale?
If application for hearing is made by the owner, secured parties, or
lienholders, then all such persons shall be joined as parties and the judge
of the district court or circuit court shall conduct a hearing to determine
if the vehicle is an abandoned vehicle as defined by the Code of Alabama
32-13, and should be sold in the manner prescribed therein. The vehicle
shall not be sold pending the decision by the district or circuit court
judge.
5. What if my customer pays part of their bill?
Accepting any amount of money from your customer will invalidate your lien!
Once you accept any money towards from your customer, the lien sale is
cancelled.
6. What happens after the lien sale?
Once the vehicle has been sold, all lien documents must be signed. Once
signed, deliver them to the buyer. The buyer is granted 20 days to submit a
completed, signed and filed set of lien sale documents to any Alabama Tag
Issuing Office. Where they can purchase a tag and transfer ownership.
7. What if I sell the vehicle for more than I'm owed?
The Alabama Tag Issuing Office shall retain the remaining balance of the
proceeds of such sale for a period of 12 months, and if no claim has been
filed against such proceeds by the owner of the abandoned motor vehicle or
any interested party, then he shall pay such remaining balance as
follows:(1) If the abandoned motor vehicle came into the possession of the
person making such sale other than at the request of a peace officer, the
proceeds of the sale shall be divided equally and paid to the general fund
of the county in which the sale was made, to the general fund of the
municipality, if any, in which the sale was made and to the General Fund of
the County.
8. I'm not an auctioneer! What do I do on the day of sale?
A lien sale is a public sale and anyone with an interest, including the
general public or those claiming an interest in the vehicle, are welcome to
attend and bid on the vehicle. Bidding generally starts at what is owed and
sealed bids are not allowed. You have the right to reject any and all bids
if the amount bid be unreasonably low, and shall have the right to continue
the sale from time to time if no bidders are present. In most cases, you
will already have the vehicle sold.
