I%26#039;m having house built for an investment and the builder has informed me that he may put a lien on the house. He said because there are some build cost that are in addition to the cost breakdown and he needs to make sure the bank sends him the payment rightaway. Will this affect my credit report?
How does a Lien affect your credit report?
A lien is standard business practice when a person is in debt for some goods or services.
He likely has to place the lien on the property to be assure he isn%26#039;t stiffed if you declare bankruptcy. A lien give him legal rights to the amount owed when the property is paid for.
Does it effect %26quot;Credit Rating%26quot;?
That depends. As long the debt is showed as current. It should not have an adverse impact on your score.
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