News and Tips on structured settlement transfers.

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29
Jan 11

Spotting a Raw Deal

The idea of trading in your structured settlement for quick cash is enticing but can be full of pitfalls. Should any of the following warning signs appear while you’re negotiating the sale, it may be time to back off.

Your first and only offer. If you’re desperate for cash, it’s tempting to jump at the first offer you get. But if you haven’t taken the time to shop around, do it now. A site like QuoteMeAPrice allows you to put the details of your settlement out there and see what buyers are willing to pay. And there’s another reason not to jump too soon: buyers will often float a low offer first in the hope that you’ll bite. If you take your time, they might just advance a better offer rather than let you walk away.

“Don’t Worry About it.” If the offer you get is skimpy on the details, or there is anything in a document you don’t understand, ask for more information. If the prospective buyer of your structured settlement hesitates to tell you , gives you an explanation that doesn’t make sense, or just tells you that everything’s fine and you shouldn’t worry, worry! You should back out of the offer altogether, or go over the documents with your attorney to hash out your concerns.

Just a Few Tweaks. A frequent complaint lodged against structured settlement buyers is that the final deal differed from the initial offer. Beware revised agreements that the buyer says has been “tweaked,” or contains “minor” differences. The buyer may be reducing your offer by changing the discount rate, or he may be trying to sneak in additional fees that weren’t part of the deal. Again, don’t let your need for cash motivate you to sign something you don’t understand – you’ll only regret it later.

Pressure. There seem to be more and more buyers of structured settlements out there. Why? Buying your settlement promises them a virtually guaranteed stream of payments, and a rate of return far better than most conventional investments. As a result, competition is high and so is the desire for results. Structured settlement buyers know that, in this economy, many sellers are under pressure for fast cash to stave off foreclosure or cover unexpected expenses. If a prospective buyer seems to be hounding you to accept his deal, is threatening to withdraw it if you don’t sign right away, or keeps pressuring you to accept changes to the original deal, walk away.

Most states allow for a “cooling off” period in all structured settlement sales, and many require you to seek legal or financial advice before selling. All of these will help you spot a bad deal and back out if necessary. But in the end, you are your most passionate advocate. If it just doesn’t feel right, take a step back and reconsider.

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.

28
Jan 11

Structured Settlement Concepts – Factoring

When you sell all or part of your structured settlement for cash, this transaction has an official name: A structured settlement factoring transaction.

Factoring can occur in lots of business situations. For example, a business might sell its accounts receivable to a factor in order to get cash now, instead of waiting to collect from its customers. But for purposes of this article, we’ll stick to the factoring of structured settlements.

A factor is a person or company who agrees to buy all or part of your structured settlement in exchange for cash. You get the cash you want now; the factor, on the other hand, gets a virtually assured stream of future payments that will total far more than the cash he gave to you. So the factor stands to make a huge rate of return on the settlement you have sold to him.

A factor decides the amount he’ll give you by applying a discount rate to your settlement. The factor considers his desired profit margin; the costs he incurs as part of doing business; and the cost of borrowing the cash he used to pay you, in order to figure the discount rate. This is essentially interest in reverse; instead of paying you to borrow your cash, you are giving up a percentage of your settlement in order to get cash earlier than scheduled.

The most important quality in choosing a company to buy your structured settlement is reputability. Get competing bids from QMAP and check the companies making them. Do they have numerous complaints from the Better Business Bureau? Or, by contrast, do you seem hard pressed to find any information about them at all, as if they recently got into the structured settlement business? You want to make sure your company exists and will be able to come through with a payment when the sale of your settlement closes. Some sellers of structured settlements have been burned by companies who didn’t pay up when the settlement deal closed.

A structured settlement factoring transaction follows a process governed by the laws of your state. Virtually all states require you to get legal and/or financial advice prior to selling, and you may be asked to justify in court why you want to sell. Be prepared to wait at least 45 days. Most importantly, realize that the factor is not your friend. He is not interested in making sure you get a fair price for your settlement, or in making sure that selling is the right thing for you to do. Ultimately, you, and no one else, are on your side. Read every document you get from the factor. Ask your lawyer or financial advisor anything you don’t understand. Be on the lookout for any subsequent change to the structured settlement sales deal you initially agreed to.

23
Jan 11

Who Wants Your Annuity?

Someone who has a structured settlement and is considering a sale of it may wonder who would want to buy. And why?

The purchase of structured settlements as an investment opportunity is getting more play in the media. It’s new (not really)! It’s different (well, OK)! It gives a great return (correct)! The allure is understandable: for an up-front infusion of cash, an investor can take over an existing stream of payments. Because structured settlement buyers use a discount rate to figure how much they’ll pay, they can control their profits – and rate of return. With discount rates often in the double digits, the return on a structured settlement can easily beat any stock or bond available in today’s markets.

The current recessionary economy has also created a boon for settlement buyers. With the economic downturn, structured settlement annuitants are highly motivated to sell. They need cash to pay medical bills, to survive unemployment, or to hold off foreclosure. The more desperate the seller, the more likely they’ll accept a highly discounted settlement, and take the deal fast.

Another reason investors love structured settlements: security. Most annuities are created when a lawsuit defendant takes a lump sum to an insurance company and purchases it. The insurance company is able to invest that cash and earn enough interest to make the payment stream to the plaintiff. These investments are locked in, and usually protected. As a result, the payment stream is relatively secure. As long as the insurer stays in business, the payment stream is a certainty. The only thing the buyer has to do is sit and wait.

But getting into this business can be tough. Of course, you’ll need access to cash in order to make those initial purchases. You’ll also need a reserve of cash to meet operating expenses while you’re waiting for those first settlement payments to come in. You’ll need help navigating the regulatory environment surrounding the sales of structured settlements. All states have a strict process and timeline for sales, and all of them include a “cooling off” period in which the seller could change his mind. You might invest a lot of time and resources into a purchase, only to have the seller back out at the last minute.

Finally, there are a number of very big players in the market who do a high volume of structured settlement buys. In order to get noticed in a bidding environment like QMAP, you’ll have to make your bid stand out – this may mean taking a lower profit.

21
Jan 11

Why a FA is an Annuitant’s Best Friend

So, you’re thinking about selling that structured settlement. Hoping to get a big cash payout. Got big plans for that money. So, what next?

Your state may require you to consult with an attorney and/or financial advisor (FA) before you finalize the sale of your settlement. Even if it doesn’t, finding some good advice is a great idea, even if it costs you a few bucks.

What am I really getting? A good financial advisor can look at the details of the deals being offered to your by competing buyers (if you haven’t shopped your annuity to more than one buyer, do it now – QMAP offers a free and easy way to get competing bids) to give you a good idea which one is best for you.

Should I Sell at All? A financial advisor will ask you about the reasons why you’re looking to sell your settlement. A good FA will try to find alternatives to selling. Remember that an annuity is designed to ensure you can cover your expenses for a fixed period of time, so you should be sure you’ve exhausted all other possibilities before you sell. A good FA might find something that you haven’t yet considered.

Dirty Tricks. When you seek out a financial advisor for help, find one who’s had recent experience in selling structured settlements. Chances are, he’s seen what buyers try to do to bump up their profits: change the deal midstream; introduce new “processing,” “legal,” “administrative” fees; or something similar. The buyer’s costs should be met as part of the deal, so if you’re asked to pay in additional fees, consider this a red flag.

Details of the Deal. A financial advisor can look at what’s being offered to you, and figure out how you’ll really come out in the end. The discount rate is what buyers use to scale back the total amount of your annuity and figure out what they’re willing to pay. A good FA can figure competing discount rates. The lowest discount rate – although it means the best lump sum payment for your annuity – can be a sign of trouble if the prospective buyer tends to float a favorable offer, only to pull it back later.

Who Are You? Still, don’t just trust anyone who hangs a “Financial Advisor” shingle outside his door. All those letters after his name should mean something, and a few quick Internet searches will tell you what. Ask him specifically about his experience with structured settlements, and find out how recently he’s handled one.

12
Jan 11

Why It Pays to Shop Your Structured Settlement

You’ve got a structured settlement and you’re ready to sell it for cash now. You’ve found a willing buyer and the offer’s not bad. So, why not go right ahead?

Like buying a house, a car, or making any other major financial decision, you should always compare your options if you’re looking to sell your settlement.

The main reason should be obvious: making sure you’re getting the absolute best offer for your settlement. If a prospective seller knows he has no competition, there’s no reason for him to offer you more. A site like QMAP is great for putting the details of your settlement out there, and letting prospective buyers come to you. Since they know they’re competing with other players in the market, they’ll make offers that are worth your while.

Another reason, though, is to let you compare the details of every deal. The discount rate buyers are using will affect the lump sum you’ll get for your sale. You’ll also be able to see whether any of the buyers are trying to charge you additional fees that will cut down on the total amount you’ll receive. You can also compare the time frames in which the buyers plan to complete the transaction. Typically, a sale will take some 45-60 days to close if all goes smoothly, but companies can vary.

Sometimes a prospective settlement buyer will float a lowball offer in hopes of getting you to bite. If you shop around, however, you have the option to turn him down and go elsewhere. Once rejected, that prospective buyer may come back with something even better. Remember, though, that you should never disclose details of offers you’ve received to other prospective buyer.

Having a sampling of prospective buyers to choose from also gives you the option to check the reputations of each of them. Checking the Better Business Bureau will let you see if the company has any complaints against them. Even if a buyer has offered you the most money, if they’ve racked up loads of complaints, reconsider using them. Disappointed sellers may have complained that the transaction took longer than promised, that buyers charged hefty or hidden fees, or that buyers changed the terms of the deal midstream.

One final reason to have a list of prospective buyers: things can change. Sometimes a prospective buyer will make an offer only to retract it before closing the deal. If this happens, you’ll essentially have a Plan B in the form of other willing buyers.

4
Jan 11

Three Killer Reasons to Buy Structured Settlements

Frustrated with the low interest rates available on conventional investments? Looking for a different way to make money? Interested in a better way to maximize returns at the lowest possible risk?

If so, consider buying structured settlements.

A structured settlement occurs when a plaintiff in a personal injury lawsuit (usually) is awarded a large sum of money for their injuries. Because the defendant usually can’t pony up that kind of cash in a hurry, he buys an annuity from an insurance company. This allows the plaintiff to get a certain number of payments of a fixed amount over a period of time.

But, sometimes, the annuitant needs a lump sum of cash up front, usually for medical expenses or some other financial emergency. When this happens, s/he may sell some or all of the payments to which she has been given the annuity. This is called a structured settlement factoring transaction, and here’s where you come in. Why buy such a thing?

Return on Investment. Structured settlement annuitants who are looking to sell need cash fast, and so are willing to accept a much smaller lump sum than the combined amount of all their payments. The discount rate – which you use to determine what you will pay the seller in cash – can get up to the double digits. This sets you up for an enormous rate of return over time, provided you have the ability to wait for the payments.

Steady Payments. Since the annuity payments are coming from an insurance company, the risk that you won’t get the payments you have bought is pretty low. As long as the insurer stays in business, you’re set.

Recessionary Economy. In the current economy, people are facing all sorts of financial difficulties, and these are what motivate sellers of structured settlements. Loss of a job, spouse’s loss of job, impending foreclosure, a need to go back to school, or medical expenses for the annuitant or a family member, are all reasons that an annuitant might be looking to sell his structured settlement at a deep discount.

What Buyers Should Know. This isn’t a risk-free investment for you, either. You’ll need cash to make the payment. Since this is a highly regulated transaction – nearly every state requires prospective sellers to get financial advice, and to wait out a “cooling off” period – you’ll need legal help, and there’s always the risk the seller could change his mind, or that the court might balk, before the deal is finalized. But even one successful deal might make it all worth the trouble.

31
Dec 10

Selling Your Structured Settlement Online Now

You’ve got some kind of a structured settlement – maybe from a lawsuit, maybe from winning the lottery, maybe a note secured by a mortgage or a business.

But it’s just sitting there. Your next payment could be months away. You need cash now. What can you do?

Thanks to sites like QMAP, you have access to a fast, easy online marketplace where you can shop your note or settlement to willing buyers to come up with the best deal for you. So – what’s next?

Put out the details of your settlement arrangement, and what you want to sell. You can sell all of the future payments if you want, or sell only a few of them. It really depends on how much cash you need. Using a site like QMAP, you can list the details and get offers from interested buyers.

Shop Around. Like the song says, don’t be sold on the first offer. Every buyer of structured settlements is different. There are some firms who do a high volume of business and have well-known names in the business. Others might be small or start-up businesses looking for a return on your structured settlement. Some firms may start out with a low offer, only to come back with a higher one when you say no. Remember that when you sell a structured settlement, you will receive less in a lump sum than you would have received altogether over time. This is how companies make money – and how you get the cash you need right now.

Fees. Buyers of structured settlements are in the business of making money on the difference between your total payments and the cash they pay you now. But the buyers incur costs in doing so; they have overhead (office staff, communications expenses), legal fees, court fees, and the interest cost of getting access to the cash they will use to buy your note. As a result, the deal you’re offered may include varying amounts of fees. Each offer should be up front about the fees that will come out of your lump-sum settlement.

What’s the Money For? Annuities, particularly those entered into as part of a personal-injury settlement, are intended to support the annuitant for a period of time. The buyer of your settlement is looking to turn a profit, however, and is not concerned with why you want the money or how you plan to spend it, or how the loss of this annuity will affect your personal finances. However, the court may have to review and approve the sale of your settlement, and will want a compelling reason for the sale of your settlement. Don’t be vague. If you want to sell, you should have a good reason to do so, such as a compelling financial emergency, college tuition, or a solid business or investment opportunity. Be prepared to substantiate your reasoning.

26
Aug 10

Cashing out Structured Settlement Payments

Structured settlement payments are paid in equal installments for a specific period of time. For example, a lawsuit of $1,000,000 (with 20 years of structured payments) is $50,000 annually or 240 monthly payments of approximately $4,166.67. Sources of structured payments are: from an insurance company, a lawsuit, as a result of death (guaranteed) or living (life contingent), and tax-free income. Worker’s compensation claims do not qualify as structured payments. If an annuitant (the person receiving the structured payments) needs the money in a lump sum, then a structured settlement factoring company may purchase the future payments.

What to Know Upfront

An annuitant will receive considerably less money for receiving a lump sum. When purchasing future payments, funders (used by factoring companies) assume all the risks associated with the structured settlement and must hedge against future inflation. It should be understood that factoring companies are in business to make money. Carefully weigh the options before considering (selling or) cashing out a structured settlement. The government’s Model State Structured Settlement Protection Act requires full disclosure of all terms of a sale.

The structured settlement payments received are generally tax-free. Tax benefits could be lost by cashing out future structured payments and state and federal taxes could further reduce the lump sum amount. That is why an annuitant should fully understand the ramifications of selling future structured payments.

Do Research First

Investigate a company’s BBB track record for any company complaints. A factoring company with more than five complaints, since its inception, should be avoided. Get several quotes before deciding on a company. Do not accept the first quote received because companies will bid low to increase profit. Never disclose a previous quote to a perspective factoring company.

Certified Funders

A factoring company uses funders that it certifies and they must meet minimum conditions. Minimum conditions for certified funders: an accredited BBB business, not merely a broker but have access to its own funding, maintain consistent best price practice, have fast service, have no default on any sale transactions, be in business for three years, be a U.S. registered company, have the ability to purchase future structured settlement payments in all 50 states and its territories, and no anti-competitive practices.

How to Cash out a Structured Settlement

The structured settlement information is put out for bid to certified funders and quotes are given to the annuitant to decide on a company. The annuitant completes forms and receives payment within 8 to 12 weeks. Good factoring companies will guarantee a closing date and if they mention “interest drag”, to delay closing, find another company. Interest drag is a tactic factoring companies use to make more profit by delaying the closing date. The closing guarantee should state that any delays will be paid per diem, to the annuitant, at the time of closing. A factoring company agreeing to this proves that there is no intention of delaying the closing date to gain additional profit.

23
Aug 10

Structured Settlement Factoring FAQ

How do I know if I need to sell my structured settlement?

If you are facing an unexpected financial crisis and have no other way to raise the cash you need to avert losing your home, paying medical bills or any other emergency, selling your structured settlement is a good option.

How do I find a company to buy my structured settlement?

Quotemeaprice.com will do the legwork and provide a marketplace for you to find the buyers who are willing and able to buy your annuity or structured settlement.

How does the marketplace work?

Just like an auction, different companies will bid on your note, lottery payment, annuity or structured settlement. You will get the most cash possible. This is all done on quotemeaprice.com. You do not have the headache of being called by multiple companies, and it saves you money. It is also good for the buyer. They can go to one place and see multiple listings of annuities or structured settlements for sale. All the information they need to make a bid is there.

How can I be sure a structured settlement buying company is the right one for me?

A good company will have a Better Business Bureau record with satisfied clients. See if there are any complaints about a company on a Google search.

Will all companies give me about the same amount?

No. Some companies will give a very low quote to maximize their profit. Always get quotes from several places and don’t disclose the quotes from other companies. In this way, it will be clear which company is trying to help you and which one is looking out for itself. The more companies that know you are selling a structured settlement, the better price you will get.

How do I know what the price should be?

There are calculators available that can get you an estimate of the value of your structured settlement or annuity. Quotemeaprice.com can help you with this or you can contact your lawyer, accountant or tax person.

How long will it take to get my money?

A good company will guarantee a closing date. If they mention an interest drag to delay the closing, find another company. Expect closing in 8 to 12 weeks.

What if it takes longer than 8 to 12 weeks?

In the closing guarantee you should add that any delays will award the per diem amount be paid to you at the time of closing. If they agree it will prove that the company is not delaying your case to make a profit.

Is there any government protection for the seller?

Most states have the Model State Structured Settlement Protection Act or something similar. This Act requires a full disclosure of all the terms of the sale. This includes the discount rate, number of payments and any charges for breach of the agreement. You should insist that the buyer complies with the Act. In some cases it may be required to have independent financial or legal advice. Quotemeaprice.com can also help you with this.

7
Aug 10

A Marketplace is the Best Place to go for Liquidating Structured Settlements

Structured Settlements are meant to be residual payments paid out over a period of time. Some people count on receiving those payments on a guaranteed scheduled time frame. However, when the actions of life happen, as they often do, it can be an asset to cash out these payments into one lump sum. There are a number of ways to do this. One of the best ways is by utilizing a marketplace.

What is a marketplace

A marketplace is much like it sounds. It is a place that will market your request for cashing out, or liquidating, your structured settlement. Instead of receiving several payments, a person will receive final one lump sum. The marketplace enables people to list their request and have it viewed by multiple companies.

Let the bidding begin

A marketplace is like ebay on steroids. A request for cashing out a structured settlement is placed. The listing is then viewed by several structured settlement factoring companies and investors. The companies then enter into a feeding frenzy of bids for that settlement. The winning company’s bid is the one the person will end up with. The winning company will then complete the process by taking the transaction through the court system and providing the final lump sum payment to the tort victim.

What settlements can a marketplace list

There are certain payment streams that can be listed in the QuoteMeAPrice.com Marketplace. QuoteMeAPrice.com has buyers for structured settlements, annuities, lottery payments, and mortgage notes.

Benefits of marketplace

The marketplace offers a quick way to get cash for your structured settlement, note, lottery payments, or annuity. The recipient doesn’t need to be harassed by several companies, all the bidding is done in one place. This means less stress, the recipient saves money and headaches.

The marketplace is a great option for people seeking to cash out a structured settlement. They offer peace of mind by receiving the most cash for your future payments.

Let Companies Compete to Buy your Structured Settlement!

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News and Tips on structured settlement transfers.

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Let Companies Compete to Buy your Structured Settlement!

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