CA DMV Form REG 656. Application for Authorization for Lien Sale of a Lien Sale for a Vehicle Valued Over $4000

The Application for Authorization for Lien Sale of a Vehicle Valued Over $4000, REG 656, is used to apply for authorization to conduct a lien sale for a vehicle valued over $4000. A lien sale is a legal process through which a lienholder can sell a vehicle to recover the debt owed to them.

When filling out this form, the lienholder will need to provide information about themselves, the registered owner(s) of the vehicle, and details about the vehicle being sold. Important fields on the form include the lienholder's name, address, and contact information, as well as the vehicle identification number (VIN), license plate number, and a description of the vehicle.

It is important for the lienholder to accurately fill out the form and comply with all requirements and regulations related to lien sales in California. The completed application must be submitted to the DMV for review and approval.

An example use case for this form would be if a vehicle owner had outstanding debt to a lienholder, such as an unpaid car loan, and failed to make payments. In such a situation, the lienholder may choose to initiate a lien sale to recover the amount owed.

A related form is the REG 262, Vehicle/Vessel Transfer and Reassignment Form. This form is used when transferring ownership of a vehicle or vessel, including in cases where a lien is involved. However, the REG 262 is not specifically designed for lien sales of vehicles valued over $4000.