Greetings,
I am getting ready to apply for a low interest energy conservation loan from the state for a new furnace.
0% - 3% interest.
They will report my ontime payments to the CA's. But they mentioned a "mechanics lien" somewhat like
a second mortgage. I understand the state trying to cover themselves.
I just had an IRS tax lien completely removed from my CR's, thanks to the information I obtained from these
forums.
My concern is the Public Record on my CR. The jump in my score from removing the IRS lien wasn't a huge
jump, just not having it show up is a bonus.
Will this type of mechanics lien be detrimental?
Thank You,
Bill
Starting Score: 3/17/12 648
The mechanics lien would only be recorded against the deed of the house to ensure that they get paid if the property is sold / transferred. It would not reflect on your credit report and is not a public record in the sense of credit reporting. It would be available as a record to anyone doing a search on the property though.
And of course if you were to default on the loan it would be a negative report. But the loan SHOULD report as an installment (I am assuming fixed monthly payments) and result in a positive trade line when all is done.
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