The City is charging most of us $300 to install a water meter. According to my “Water Meter Installation Bill”, I have the choice of paying the $300 by Jun 30th, 2011 in one, lump sum or having $8.52 added to my utility bill for 36 months. For me, that decision is a “no brainer” … pay it off by the month and use the $300 to buy groceries and gas.
However, in the City’s letter, I’m cautioned that if I take the payment plan, a lien will be placed on my property. On the surface that doesn’t seem too bad. After all, it’s only $300 for three years … right? Well, here’s what my small brain began to think and why I’m asking for help to understand the implications. I realize and accept that I won’t be able to sell or transfer ownership of my property until the debt to the City is paid off, but what about my credit rating and the answers to these questions?
1) Will the lien be seen as something more ominous than it is?
2) Will the lien be classified as “consensual” or “involuntary”?
3) Will the lien affect my credit score?
4) Will my ability to get a loan or refinance my home be impacted?
5) Will my ability to get a low interest rate on a loan be affected?
6) If I’m in a rush to get a good interest rate, how long will it take the City to officially release the lien and for the credit bureaus to take it off my report?
7) How will this lien affect other creditors in bankruptcy proceedings?
I don’t know the answers to these questions, but I’m starting to wonder if I should pay off the $300 and forget the payment plan.
by Concerned Citizen