News and Tips on structured settlement transfers.

Cash

October, 2010


10
Oct 10

What to Look For in a Company When Selling a Structured Settlement

You hear the term “structured settlement” practically every day. Most often it will be in the context of selling it to certain companies.

Keep in mind that the purchaser is looking to make a profit. Your goal is to get the most money possible. Go slow in deciding when and to whom to sell. Do your research, take bids and insist that certain terms and rights be met. It is your money. You are in control. If the amount of the offer and the conditions of the deal don’t make for a fair exchange, look elsewhere.

Remember, you don’t have to sell the entire settlement. You can sell just a portion if you prefer.

Here are steps you can take to protect yourself and ensure you are getting the best deal:

1. Have an idea of what your structured settlement is worth, keeping in mind a fair discount rate. This discount is where the company’s profit comes from and why they are willing to purchase. If this doesn’t meet your expectations then maybe selling isn’t right for you at this time.

2. Make sure the company you’re considering is legitimate. As with any other business, the Better Business Bureau is an excellent place to start. You will also want to do a web search for complaints against the company. An easy way to do this is to just “google” the name of the company followed by the words “complaints” or “reviews”.

3. Don’t rely on the integrity of any one company. Get multiple quotes. Don’t share the offered amounts with the other companies who will be giving quotes. You don’t want a previous offer to be a factor in new bids. This is also a good way to weed out the not-so-good companies. If someone offers a ridiculously low offer they probably do not have your best interest in mind. Conversely, if someone offers an unreasonably high offer, this is suspicious as well. It’s fairly common to offer the highest initial bid and then do a series of stalls until the client is desperate to take a much lower offer.

4. When it is time to write the agreement, be sure it is laid out the way it was discussed.

5. Have a definite closing day. This varies by state, but eight to twelve weeks are normally sufficient. Insist that there are penalties in place such as an additional payment per day, due to you on closing, if the settlement company fails to close on time. It is possible for them to stall so they earn some extra interest on the money while they make you wait.

6. Know your rights. There are laws in place to protect your interests. Although it may seem like a nuisance, you will need to go through the court system in your state to have the settlement approved. This is for your protection.

Cashing out a structured settlement is a big financial decision so go slowly and plan carefully.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.