State (CT) Energy Conservation Loan / Mechanics Lien

[Anonymous]

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

[Anonymous]

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.