News and Tips on structured settlement transfers.

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14
Jul 11

Making Sense of Selling Your Structured Settlement

When you want to sell your structured settlement payments some companies you may talk to will feed you the oh so popular line that “It’s your money” do do with as you please. Well, yes. It is your money. And, yes. You may spend it however you like. What the often won’t mention is that sometimes the reason for selling is valid, and sometimes your reason just doesn’t make good financial sense.

If you’re planning on going on a holiday shopping spree and need a little extra cash to fill the stockings, your structured settlement is not a good place to look for dollars. However if you have gotten yourself into a situation where you are drowning in debt at very high rates, it may make financial sense to use part of your settlement to clear the books.

When faced with a serious financial crunch, some people hastily sell their annuities and structured settlements to the first company who would be willing to buy them for a lump sum amount. These companies who are willing to buy-out annuities and structured payments are commonly referred to as “Factoring” companies, because they use “Factors” to determine how much future payments are currently worth, and how much they should buy them for.

Many companies that advertise structured settlements web make the process seem easy. The process of selling your structured settlement can be a complicated legal process that requires court approval and can take up to 90 days to complete. Structured settlements are not available in every state.

Selling your settlement under some of these scenarios can save you money and ensure you keep a solid credit rating, however it is critical to note that if you are going to sell all or part of your settlement to pay off credit card debt, you must have a plan to keep that debt from creeping back up on you or it will all have been for nothing. This requires making a future budget and possibly consulting with a financial counselor to figure out how to keep out of such a financial mess in the future.

Your structured settlement or annuity is the foundation of your financial future. If you find yourself in financial need now, you should at the very least give yourself a couple more weeks to shop your deal to the competition.

You might be telling yourself that you cannot afford to wait, but the truth is that you cannot afford to take the first bid that you are offered. In some cases, jumping at the first offer could be the equivalent of financial suicide to a structured settlement owner.

It’s important to speak and deal with a company that knows the process well and can take you through it smoothly.

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.

14
Jul 11

5 Things Before You Sell Your Structured Settlement

I many situations in the life, to get a lump sum is a must and you just cannot wait for the structured settlement annuity payments, which will come in the future. The market has operators, which can buy your structured settlement and to turn it into the cash money.

Many people, who have met sudden cost increases, like the increase in the medical bills, are the typical users, who are willing to sell their structured settlement annuity agreements. An owner can sell also only a part of the structured settlement annuity agreement.

1. You Need A Reputable Buyer.

The world is full of scam companies, who just want your money. The worst thing, which can happen is, that you will lose the agreement without getting anything. So what you need to do is to find a reputable buyer, to whom you can trust. Talk with their earlier customers and contact the Better Business Bureau.

2. Talk With The Legal Advisor.

But guarantee first, that this legal advisor is a legitimate operator. The advisor can guide you to pick the right buying company, rather a long term venture, who will do the payments as agreed. The advisor can also guide about the contract terms, especially those small print details.

3. Do You Know Your Rights?

First, to sell the structured settlement annuity agreement is totally legal process and accepted by the most states. Private persons have done these deals for years. However, only the legal advisor can tell you what is permitted and what rights you have in the process.

4. Evaluate The Position Of Your Structured Settlement In Your Long Term Financial Plan.

Why? Because the regular payments were parts of your earlier plan and were needed to guarantee, that you can manage all the payments. When you will sell the total agreement or a part of it, those regular payments will disappear totally or partly and you will get cash money instead. What happens?

5. The Expert Guidance And Several Offers Are Needed.

The selling of the structured settlement is a long term, legal arrangement, which includes, that you will fully understand the details and that you will pick trustworthy companies and other experts to operate with.

In this process talking to other people is really valuable. The more you get the expert guidance and the more you read, the better deal you will make. The worst thing is to make a deal in a hurry with the first company you meet.

6
Jul 11

Selling your Structured Settlement Payments: Skip the T.V. Hype

We all face financial difficulties in our lives at one point or another. However, not all of us have the option of selling our structured settlement payments for a lump sum to cover short term gaps. Do you want cash for your structured settlement? Brokerage companies, also known as factoring companies, want to trade you lump sums of cash for your future annuity payments. If you are looking for money, want it now, and are willing to lose long term money, for that lump sum payment, structured settlement companies might be for you.

There are some very important financial matters that you should be aware of. If you do need money for your structured settlement payments, realize that you will be transferring ALL of your future earnings to the brokerage company.

You can see commercials for structured settlement payment transfers on TV all the time. They are making a boat loads of money in this business. Most cash for structured settlement brokerage companies do business ethically, you should keep in mind that they want your money. Every interaction you have with them is designed to get your payment rights transferred to them. So, no matter how friendly the people might sound on the phone, they’re NOT your friends. They only want your cash.

So unless you’re in dire straits or you absolutely need the money or the house will be foreclosed ” or some other life shaking event ” in is in your best interest, financially, to take the slow drip payments.

Structured settlement and annuity companies profit by giving working class people like you large lump sums of money that are, sometime extremely, smaller the discounted face value the payments.

Because of abuse by some structured settlement companies, you are now guaranteed favorable tax treatment if you do decide to transfer your structured settlement payment rights. However, the laws governing these practices don’t always guarantee your protection. For this reason it is often advised to seek professional financial advice from someone that has no vested interest in your final decision prior to completing the sale.

6
Jul 11

Selling Your Structured Settlement Payments & Long Term Considerations

If you need to get cash by selling your structured settlement payments, there are some important matters that you should be concerned with. The long term cost of selling your structured settlement for a lump sum payout are substantial. Most people don’t take these costs into consideration and only focus on the immediate impact of a large cash windfall.

If you finally do decide to go with a structured settlement brokerage company this what you need to know about the law.

If you’re in a lawsuit, some services “offer” you the ability to “sell” your structured settlements to them. In exchange, they provide you with a lump sum of cash in the event you need this type of financial resource.

Laws do protect consumers from brokerage companies that are unscrupulous. Most often, the settlement agreement also specifies a non-assignability clause. Basically, this is unenforceable, though.

Some of the purchase agreements require the consumer to stipulate to a host of provisions which severely restricts consumers rights and raises questions as to their basic fairness. To forestall suit, however, the contracts often require the consumer to defend and hold harmless the purchasing party in any lawsuit.

The price terms usually unfair. Summary accounts show that some sales are completed with a 12 percent or 15.8 percent discount rate, but other sales have been completed with a rate as high as 55, 65, and 75 percent. In addition, since the discount rate is always calculated on the purchase price which includes brokerage and other expenses “agreed” to by the seller in the contract, the real discount rate and cost of the transaction to the seller is artificially depressed. Moreover, there is no requirement to disclose to the seller, in understandable terms, the total fees of the transaction. Given the unfairness of some of the transfer agreements, consumers need protection from factoring companies that take unfair advantage.

Some say that structured settlements give financial protection that’s sorely needed to severely injured victims, so that they are protected from having their benefits prematurely dissipated; periodic payments are tailored to the medical and living expenses of the victim and the victim’s family, and it avoids shifting the responsibility for the victim’s care to the social safety net financed by taxpayers. These same people say that factoring companies that purchase future structure payments for sharply discounted lump sum payments are dramatically on the rise. This means that the structure is taken out of the structured settlement, in that the injured victim enters into this with a third party, thus going completely outside of the structured settlement without knowledge of any other parties involved in the structured settlement itself.

According to industry watchdogs, the unscrupulous side of the structured settlement factoring business is rapidly growing. One company announced that it has undertaken more than 7,700 structured settlement purchase transactions with a total value of $370 million. During the first nine months of 1997, the same company undertook more than 3,700 structured settlement purchases paying $74 million for $163 million of structured settlement payments.

What that means is that the long-term financial security and careful planning so painstakingly set up to take care of the needs of the injured victim and his or her family are being tossed aside. This is all because factoring companies offer quick cash at deep discounts for future structured settlement payments — but at what cost? Once these victims have given away their only source of assured future financial income, they may indeed have to go on public assistance to cover future basic living expenses and medical expenses — even though this is what the structured settlement plan was set up to avoid.

6
Jul 11

Selling Your Structured Settlement: Considering Future Value

Though structured settlements are primarily meant to be a method of payment of personal injury compensation, they can also provide a financial windfall for those in need of quick cash. They are intended to provide long-term stable income for claimant and cover medical and life costs. Instead of receiving one big lump sum, which can be more of a burden than a solution, claimant will receive regular monthly or annual payments. This provides greater financial security and ensures that claimant will have funds to provide for him self. So, why would you want to sell your structured settlement? Let’s read more to get a better idea of what we mean.

Even though they are an excellent way of settling personal injury cases, structured settlements have a few disadvantages. Before they are signed, they can be shaped in almost every form, whether it is annual payments, monthly, bi-monthly, or any combination of the above.

You can arrange for every tenth payment to be larger than regular ones, if you need to do so. In that sense, structured settlements are very flexible. However, once signed, they might as well be set in stone for that matter.

Not one letter can be changed. This aspect of structured settlements can be unfortunate; considering life does not always goes as we planned. You may find your self in a situation where you need substantial amount of cash, whether is that down payment for a new home or college tuition. Sometimes the only solution is to sell your structured settlement.

There are plenty of companies on the market that specialize in buying structured settlements. They all offer different terms so it is a good idea to ask around a bit before actually selling. The basis principle is the same with all of them. You sell your future income for the lump sum paid to you today. If you have decided to sell your settlement, one thing must be clear to you.

You will not get as much money as you would from your original settlement. The difference between what you get and the amount of settlement is a profit margin for the company. Be careful when weighing your options. Is the difference worth getting your money today instead of in 5 or 10 years? If the answer is yes, then you should sell your structured settlement.

One other thing to consider is inflation. A one hundred thousand dollars in 1980 is not a one hundred thousand dollars in 2010 or in 2030. Money loses its value over time and the longer you wait, the more value you will lose. All these factors are important when deciding to sell your structured settlement.

1
Jul 11

Structured Settlement Sales: Just the Facts Ma’am

The term “structured settlement” payments cover payments you receive, usually monthly, as compensation for damages caused to you in the form of injury, crimes, or perhaps hazards at work. Often these payments are considered by those receiving them to be just a replacement for regular income. But what about situations were you find yourself in the difficult position of needing financial help yet have little or no ready access to cash? What about unforeseen emergencies? What about finding you’re behind on your mortgage? Then, your structured settlement payments can become so much more than just replacement income.

Whether you are in the midst of seriously hard times, or just want to upgrade your car, pay off your credit card bills, or send your child to college, your structured settlement could offer the relief you need. These settlements are, in essence, a deferred method of financial payment and can be very beneficial in terms of a solid and predictable monthly income. If the day has come, however, when the amount stipulated in your monthly payout is just not enough to cover your financial needs, it could be time to consider selling your structured settlement. If you are at this crossroads, there are certain crucial issues you need to consider before selling your structured settlement.

Although it was not always so, the sale of your structured settlement now requires a court in your state to review the agreement you eventually reach with a buyer, and prepare an order approving the sale; these rules are intended to protect you from being deceived or entering into a deal which is not in your best financial interest. Once you have decided to sell your structured settlement, you must do your research. Although there are many reputable companies out there, there are also some that are less than reliable. It is a good idea to call the attorney general or consumer affairs in your state to check out any prior complaints against the company you are considering. Take the time to thoroughly check out companies who purchase structured settlements, and remember that the highest bidder will not always be the best. Some companies will make a high offer in order to get you to sign a contract—later the “hidden” costs and fees come to light, leaving you with much less than you anticipated. The specific terms and conditions in purchasing structured settlement can vary widely from company to company therefore you should read the fine print thoroughly and ask questions if anything seems doubtful.

Once you have obtained multiple quotes, and have narrowed down your choices to the one you believe will can best help you, it’s time to send in copies of your structured settlement policy to the purchasing company. Once received and approved, the company will send you a disclosure document to sign which should thoroughly explain the conditions of your transaction, including offer, terms, and any other pertinent information. Once you sign the settlement agreement, the court order process will begin; be aware this process can take up to 90 days, depending on your state of residence and your insurance company. In most cases, once approved, you can receive your money fairly quickly, sometimes as soon as ten days to two weeks. Although you may need cash desperately at this moment, keep in mind that selling your structured settlement is a major financial decision that has potential consequences which will last for a very long time. Be smart, and be don’t rush into anything when negotiating a sale–the results will reflect that care.

29
Jun 11

Selling Your Structured Settlement: Is Now the Best Time?

With our current economic recession lasting longer than most annalists had initially expected it too, it is becoming difficult to find anyone who isn’t concerned about their money. In these difficult times, those who are receiving monthly payments on a structured settlement are often wondering about whether they should opt to cash out now and receive a larger lump sum or if they should try to wait out this slowly recovering economy. Whether or not selling your structured settlement payments is an appropriate decision depends largely on each person’s own personal circumstances, situation, and willingness to live at a, sometimes greatly, reduced standard of living compared to what they may have been accustomed to before.

Regardless of the current economy, you must ask yourself some basic questions prior to considering the sale of your structured settlement payments. For example, do you sincerely need the lump sum now? Have you or your spouse recently lost a job and is this why you feel the need to sell? If so, can you wait things out until you or your spouse is employed again without selling your payments? Are you encountering debt problems with respect to mortgage payments, vehicle payments, utility or credit card payments that may affect your credit rating if you are unable to become current? In the event that your financial situation falls into one of these categories, choosing to cash out your structured settlement now, rather than receiving monthly payments that are inadequate under the circumstances, may be the most logical choice for you in these tough economic times. It may also help save your home from foreclosure and your car from repossession. In addition, it will allow you to avoid any of the consequences of having a default judgment filed against you for unpaid credit card bills, such as bank account freezes and wage garnishments. These types of black marks can stay on your credit rating far longer than the most pessimistic of economy annalists would predict our mild recession to last.

If, on the other hand, your financial situation is more stable, you’re current on your bills and have steady employment, opting to cash out at a rate anything even a little less than what your full structured settlement is truly worth, simply to have the extra money on hand, could be possible but really doesn‘t make much financial sense. Even though rates are at there lowest in the history of the industry, cashing out a structured settlement means that you are cashing out each payment for a discount of their actual future value. If you are not in a position to pay your bills, the percentage may seem like a small price to pay to help you catch up and get your life back in order. Those in more stable financial situations, however, might not see as much benefit to losing even a portion of their full settlement figure when they do not truly need a lump sum immediately.

In addition, make sure you shop your payments to multiple companies or use a structured settlement sales broker to handle your shopping for you. For the small cost of using a broker you can do away with the time consuming hassle of shopping around yourself, while knowing at the same time that it’s in your broker’s best interest to get you the best deal if he has a percentage commission riding on the outcome.

25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 2

Structured settlements are payments that are given out by insurance companies to help you cover ongoing costs that you may experience from the result of an accident. These payments are usually annual or bi-annual and are meant to cover living and medical costs. People who receive these structured payments are usually interested in selling these structured payments for a lump sum. By selling your structured payment, you won’t receive the full value of the settlement, however, you will receive a considerable portion of the original settlement.

Selling your structured settlement loans are very advantageous if you are able to invest it and earn a higher rate of return. Most people who are looking to sell their settlements will often use the money to pay off any bad debt they may have or use the money to take out a mortgage loan. No matter what you intend to do with the money, many people feel that they will get more value from selling their structured settlement than keeping it.

If you are looking to sell your settlement, you should know that there are different ways to do it. You can either sell your whole settlement payment or sell partial of the settlement. The best way to go about selling your structured settlement is finding a broker who specializes in selling structured settlements. Because the structured settlement payments are guaranteed income, there are many people who are looking to invest in these settlements to give them guaranteed income. These investors are often looking for a safe return on their investment.

Depending on the company who is giving you the structured company, you may not be able to sell it. Some companies don’t actually allow the sale of their structured settlements. This means that you should find out if you can sell the settlement before you try and sell the settlement. You qualified broker should be able to tell you if you are able to sell the settlement or not.

Structured settlements sales are very common among different people. Most people just look at these sales as a way to get access to instant money. Structured settlement loans are often considered very valuable investments from different people. If you are in a tight financial position, then you should definitely consider selling your settlement. For many people, these benefits often outweigh the negatives of selling. Start your search by finding a qualified lender online who specializes in structured settlements.

25
Jun 11

Selling Your Structured Settlement: Don’t Go Broke, Use a Broker- part 1

It’s not uncommon for the recipients of a structured settlement to want to sell the payments in order to acquire a lump sum. Obviously there are many reasons why a recipient of such payments would choose to follow this route. For example, they may want to purchase a property, or perhaps they would like to invest a lump sum of money in one or other business venture. Basically, receiving a one off lump sum payment has a far higher potential to be life changing than what small monthly payments have.

Just as there are people who wish to sell structured settlements, so to are there those who view such structured settlement investments as a viable option for increasing their financial portfolio. Of course, if you choose to sell your payments then you need to keep in mind that investors won’t pay you as much as what you would otherwise have received, because just like you want to benefit from one lump sum, they want to profit as well.

In many cases the reasons for a person wanting to sell their payments can be extremely pressing, such as when they may have huge amounts of debt which they need to settle as soon as possible. However, because structured settlement investments can be so lucrative for investors, there is generally no shortage of potential buyers, and of course this is something which sellers can to a certain extent use to their own advantage. Before actually selling the payments, a seller should ideally consult with a reputable financial adviser. The advisor they choose should however not be connected to the potential buyer in any way. In other words, the financial adviser should have the seller’s best interests at heart, and they should ensure that the seller fully understands how much money they will lose should they proceed with the sale. A responsible adviser will also question a seller’s motive for wanting to sell their payments. In other words, a good adviser will make absolutely certain that the seller is aware of all the different pros and cons.

Something else to bear in mind is that structured settlement investments involve more than just a buyer and a seller, in that court approval is usually the mandatory. During the court hearing the presiding judge will also try to determine whether or not the seller has a solid understanding regarding the sale of their payments and any consequent ramifications. During this process the court will usually want to see evidence relating to the seller’s financial circumstances and financial needs. The seller will also be made aware of the fact that it is possible for them to sell only a portion of their payments rather than the entire structured settlement. This process also helps to ensure that the buyer or buyers are trustworthy and reputable and that they have no hidden agenda.

Even though there are several routes a person can take when they want to sell their structured settlement, it is always best to work through a reputable broker who specializes in structured settlement investments, in that such brokers are extremely knowledgeable with regards to the laws governing such contracts. Remember, structured settlement investments should not only benefit the buyer, but they should also benefit the seller, hence the reason for a fair agreement which takes the interests of both parties into consideration.

25
Jun 11

Selling Your Structured Settlement: Plan First, Sell Second

Structured settlement payments come about from a number of situations. Many are from lawsuits over a personal injury or from financial harm. Often the structured settlement will be created through the purchase of an annuity, which will guarantee the future payments. Most structured settlement payments are made monthly, although any payment period is possible.

If you are receiving or about to receive structured settlement payments over a period of time, you may be wondering if selling your payments for an immediate lump sum of cash is a good idea. Unfortunately, there is no one answer to this question as every person’s situation is different. However, there are a few things to consider when deciding on whether to sell your settlement payments or not. Here are 3 important ones.

1. If you are receiving structured settlement payments as a result of an injury that made you unable to work but that are insufficient to cover your basic living expenses, a lump sum may be your only real choice. However, you must realize that the lump sum only covers you for a period of time, after which you will be without income. If you decide to get a lump sum, you need to a) Create a strict budget each month and follow it to be sure your lump sum payment for the structured settlement lasts as long as possible and b) Allocate some of the lump sum payment for training in a profession that you can physically do or to start a home based business so when your lump sum runs out, you have sufficient income to at least cover your monthly financial needs.

2. If you don’t have to have all your structured settlement in a lump sum but are still considering selling the payments, you need to determine for yourself whether you feel the future value of your payments is worth as much as a lump sum now. You will need to get a quote for selling the payments in order to compare the two options. Your decision on this comes down to what you firmly believe inflation will be over the life of your income stream. Be careful on solely using government reported inflation numbers as the core inflation reported excludes “volatile” items like food and energy, which are very real for every one who eats, fills up the car or heats their home.

3. If you are thinking of using the lump sum to make a lucrative investment, you will need to analyze the expected (conservative) return on your investment versus the known income from your structured settlement. You may want to consult a financial adviser to help you make these calculations and comparisons.

Selling structured settlement payments can be an emotional event. Try not to let it be. Use logic and sound analysis to help you make this important financial decision. You’ll be glad you did.

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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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