With the economy in the shape it is in, and rising needs for access to lump sums of money, sales of structured settlements are on the rise. While many like the advantage of a regular, steady income afforded by structured payments, some have a need for a larger sum of money that is usually paid through these settlement payments. And even though the sellers take some risk when selling their payments, the buyers have a few risks of their own.
Judge’s Decisions
The court process is one of the many risks involved for buyers. Selling an annuity or structured settlement payment is not a quick and simple proposition. A judge will look at each and every offer to determine if it is fair and legal. Buyers always have the risk that a judge will immediately deny the transfer of the settlement or annuity. This outcome is likely, as all decisions on the matter are of the sole discretion of the judge.
Laws and Regulations
In order to sell a settlement, a definite need on the part of the seller must be proven to the judge’s satisfaction. Many judges, for example, won’t consider buying a second home or taking an expensive vacation as a crucial need that dictates selling a settlement. Many states have laws that make examining these deals mandatory, to ensure they are in the client’s best interest and not the result of pressure from a predatory company.
Don’t be so Hasty
Selling a structured settlement is not as easy as some late-night infomercials may lead you to believe. The truth is it can take 30 days or longer for any arranged sale of a structured payment or annuity to come to completion. It may even take longer, if factors such as payment type, payment amount, needs of the payee, and judicial jurisdiction come into play when trying to make a deal.
When it is all said and done, buyers of structured settlements and annuities are at just as much risk when completing a deal as the seller. Whether you are a company seeking to purchase a settlement or annuity, or a seller who needs a lump sum of cash to meet a sudden financial hardship, a settlement broker can help things move along smoothly and without hassle. With the experience a knowledge needed to help these deals work smoothly, a broker can bring satisfaction to both parties.
