News and Tips on structured settlement transfers.

A mortgage note is a promise from one party to another repay a mortgage loan.   This promise is secured by a piece of real estate.  So, if you have a home and you are paying the mortgage, you are making payments to someone who holds a mortgage note on your house, usually your bank.

If you happen to hold a mortgage note where someone else is making payments to you, however, you may be able to sell all or part of the note for a lump sum of cash.  This is much like the selling of structured settlements or lottery payments that has been discussed in prior posts.  If you sell the note, you give the buyer the right to collect future payments in exchange for cash up front.

The first step in selling your mortgage note is to shop around. An Internet search can produce numerous companies that buy mortgage notes.  Using a service like Quote Me a Price enables you to get several quotes from interested buyers all at once.  Examine prospective deals carefully.  Look for the discount rate – a rate the buyer uses to determine how much he’ll offer for your mortgage – as well as any fees that you will be expected to pay, such as legal fees or processing expenses.  Seeking a financial advisor to help evaluate offers is a great idea.

Much like the sale of other settlements, you can expect to receive less cash now than you would have received in total over the life of the mortgage.  Note buyers do this to compensate for their operating costs, to justify the risk of taking on a stream of future payments, and also to make a profit.  How does a buyer decide how much to pay for your mortgage?  The buyer sets the aforementioned discount rate based on a number of factors, such as the creditworthiness of the mortgage payor; the type of the property (residential, commercial, industrial); the condition of the property; the appraised value of the property; the number of payments left in the mortgage; and the terms of the mortgage, especially the interest rate.

You should evaluate carefully the companies that bid on your mortgage note.  Typing the company’s name into an Internet search engine can yield information about the companies courting you, but this is just a starting point.  Also check the Better Business Bureau (www.bbb.org).  Your State or District Attorney may have information on official complaints, if any, filed against prospective buyers.  The economic downturn and nationwide foreclosure crisis has revealed countless cases of botched paperwork, unclear ownership of mortgage notes, and fraud, so take plenty of time to do this homework.

Should you take up an offer, what happens next?  Details next post.

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.

If you’re selling a structured settlement, lottery award, or other stream of payments, you already know that the companies who buy these settlements do so in order to make money.  Any Internet search will reveal plenty of court cases and complaints that prove bad guys really are out there, and they may be coming for you.

You should always get several offers for your settlement.  Using a service like Quote Me A Price will help you shop it around to numerous buyers.  But how else can you check them out?

Check for Complaints.  A simple Internet search can yield information about the companies you are considering.  But since it’s easy to trash a company online, also check with the Better Business Bureau and your District or State Attorney’s office for formal complaints against made against prospective buyers of your settlement.  Common complaints include taking longer than promised to make the sale, or the company changing the terms of the sale from the original bid.

Outrageous Discount Rate.  The discount rate is what the prospective buyer uses to determine how much cash he is willing to pay for your settlement today.  Companies consider many things when figuring this rate, such as the cost to borrow the cash they will need to pay you; lost interest revenues on the cash they will pay you; the risk of taking on a stream of future payments, the operational costs of doing business (a.k.a. overhead), and, of course, profit.  Opinions vary on what constitutes a “reasonable” discount rate, but the higher the discount rate, the less money you’re going to get.  Compare the offers you’re getting and, as always, think hard about whether selling your settlement is your best option.

Big Fees.  Check any deal you get carefully for “attorney fees,” “processing fees,” “service fees,” or anything else that looks like an extra charge.  If you get stuck paying this, it is just one more chunk out of your settlement on top of the profit the buyer will make.  Even once you agree to a deal, keep checking the fine print every step of the way to make sure the seller isn’t changing the terms on you midstream.

High Pressure.  Beware any company that tries to get you to settle quick, discourages you from soliciting offers from other companies, hides the fine print, uses “their” attorneys or financial advisors to convince you you’re getting a good deal, or any other tactic that makes you feel uncomfortable.  Don’t reveal other offers you’ve received to prospective buyers.  Selling a structured settlement is an important financial decision, and should never be rushed.  Always get your own, independent advice.  Be skeptical and don’t trust the settlement buyer blindly – even if they’re not trying to cheat you, anyone can make a mistake.  

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.

If you have come into some money, either by selling a structured settlement or winning the lottery, there will be an onslaught of people who will come forward, hoping for a piece of your newfound fortune.

If you were raised in a household where saying “no” was considered rude, or worked in a job where “no” was always a wrong answer, you’ve been conditioned to be polite, even at your own expense.  Now is the time to shift your thinking and start looking out for you.  Doing things solely for the benefit of others will lead to resentment, and possibly financial ruin.  Put yourself first.  Give yourself permission to say no.  Remind yourself – as often as necessary – that you have the right to say no to anything you don’t want.  Need something more specific?  Here are some graceful exits from the pressure to say yes.

To Salespeople:

Amazing how the guys who wouldn’t give you the time of day when you were poor suddenly want to talk to you now that you have money.  When you encounter a pushy salesperson, try these:

“I need some time to think about it.  I will call you if I decide to buy.” (Even if the salesman claims his offer won’t be good tomorrow, he’ll probably honor it.  And if he doesn’t, go elsewhere.)

“I run all significant purchases by my spouse.  I’ll let you know if we decide to buy.”

Charities:

These are good causes, and the reps are as slick as the best salesmen in getting you to loosen the purse strings.  Don’t want to be bothered?  Try:

“Sorry, but my financial advisor and I have planned out all of my charitable giving for the year.”

“Yours is a fine organization, but I have already worked out my will with my tax advisor.  If I reconsider, I’ll let you know.”

“I check with my tax advisor on all charitable giving.  Send your information to my P. O. Box and we will consider it.”

Family: 

This is the hardest of all.  Expect to be reminded of all the times they were there for you.  Expect to be called ungrateful, disrespectful, and uncaring.  Don’t you know how hard Uncle Bob’s life has been?  Don’t you love us?

“I’m sorry, but I have never met you and have never heard of you.  I don’t know how we are related.” (Of course, this one won’t work on your mom.)

 “Cousin Joe, we haven’t talked since we were kids.  Why are you calling me now?”

 “Sorry, but my financial advisor and I have already worked out the budget for this year.”

 “Son, I can’t pay off your mortgage, but I can give you $_____.”

 “Mom, I love you and Dad with all my heart.  But this money has to support me and the kids.  We have to plan our finances around that.”

 If none of these work, there is a somewhat less graceful way to say no.  Practice it again and again if need be.  It’s:

 “NO!”

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.

Who doesn’t dream of watching that late-night lottery drawing and looking down at the ticket in your hands to find…you’ve won!

If you have been so lucky, keep your celebrations in check for the moment and consider how your life is about to change.  Any Google search can yield loads of stories of lottery winners who got rich quick and got poor faster.  Don’t be one of them.  Taking the time to really think through what you’re going to do next can make all the difference in your financial future.

Keep it Quiet.  It’s unwise to announce to the world you’ve won the lottery until the prize has been claimed and you have a solid plan for how you will manage that money.  Keep your ticket in a safe place where no one will steal it, or mistake it for garbage and throw it away. 

Don’t Wait Too Long.  There is always a time limit on when you can claim your winnings.  Find out how much time you’ve got and plan accordingly.

Talk to Experts.  How will you protect yourself and your newfound money?  Assemble a team to help.  You’ll need a lawyer and a financial advisor; so, without tipping anyone off, ask your friends, family, and community for references.  Interview the most promising candidates, looking for those who handle high-income clients and, optimally, those who’ve dealt with lottery winners before.

Prioritize.  You probably want to quit your job and pay off your mortgage.  But do you also want to help family?   Start a business?  Give to charity?  A good financial advisor or CPA can look at your existing finances and the coming lottery winnings, and help you plan out the best way to meet your goals.  Consider also how you’ll want to structure your estate, so that your money will go where you want when you are gone. 

Lump Sum or Periodic Payments?  Once you go to lottery headquarters to collect your prize, you’ll be given the choice of a lump sum up front, or periodic payments for a number of years.  If you take periodic payments, you are counting on the lottery authority (usually the State) to invest your winnings for you.  You may think that you are a better investor than the government, but don’t overestimate your ability.  Another option is to take the periodic payments, and then sell that payment stream to someone else.  Again, a good financial advisor should help you figure out what’s best for you. 

Lay Low.  Once you claim your prize, the lottery authority will release your name to the public.  Prepare for the onslaught.  Family, even those you’ve never met or haven’t talked to in years, will appear, asking for money.  Salesmen will come calling, as will charities.  You can’t save the world, so you need to protect yourself.  Get a new, private phone number.  Get a P.O. Box so that you don’t have to give out your home address.  Most importantly, learn how to say no.

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.

This is the final part in a series of posts with questions you should ask yourself to determine if selling a structured settlement is a good idea for you.
If you’ve gotten this far and are still convinced that selling your structured settlement is your best option, then you have decided: 

That you have a legitimate and immediate need for cash now that you can’t fulfill any other way;

That your plan for spending the money is a sound business/financial decision that is likely to succeed; and

You will prevent yourself from spending the money too quickly on unwise expenses.

So, there is only one more question to answer:

Essential Question #4:  Am I really doing this for me?

All of us can think of something we did at one time in spite of ourselves:  an unpleasant favor for a friend, or told a little white lie.  Now is the time to think about the real reasons why you’ve chosen to sell your structured settlement.  Where is the real pressure to do this coming from?  Who will benefit from what you’re going to do? 

 The Financial Advisor.  This person is so nice, so easy to talk to, and so knowledgeable.  I’m really lucky that he was willing to take me on as a client, since the amount I’m going to invest is not quite as much as he’s used to handling – at least, that’s what he told me.  It’s amazing that he found this really great investment where I could put my money.  Thanks to his connections, I’m going to get a return much higher than I would have gotten on my settlement.  He’d be so disappointed if I backed out of this deal now.  He’s worked so hard on it, and he’s really on my side.  Isn’t he?

Business Partners.  This business I’m opening is a sure thing.  My business partner/franchisor assures me that I’ll be turning a profit in no time.  I know they’ll be there to support me if anything goes wrong, but nothing will.  He’s done all the research, and we’re breaking new ground.  We’re going to make lots of money.

Family.  My spouse/child/parents really need this money.  Sure, they got themselves into trouble, but I’d hate to see them suffer if they can’t pay their bills.  I know they’ll pay me back.  They promised they’d pay me back.  And they’d never go back on a promise…would they? 

If any of these scenarios echo the thoughts going through your head about selling your settlement, take the time to think again about why you’re doing this, and how you will take care of yourself if everything falls apart.  It can be difficult and awkward to change course now – you may even lose some friends or estrange your family.  But your financial future is your top priority.

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.

This is the third in a series of posts with questions you should ask yourself to determine if selling a structured settlement is a good idea for you.

Essential Question #3: Am I good money manager?
Most of us, though we don’t want to admit it, are lousy money managers. If you sell your structured settlement and are left with a lump sum of cash, even if you have the best of intentions for its use, you may find it disappears much faster than you had planned, and for all the wrong reasons. To predict the likelihood of that happening, see if you are one of the people described below.

The Magician. In your hands, money has no choice but to disappear. As soon as it’s in your account, you start noticing all the must-haves you’ve been denying yourself. You haven’t bought a new handbag or dress shirt in a while. And didn’t the kids say they needed new shoes for school? As far as you’re concerned, there’s nothing wrong with the occasional splurge – something you remind yourself again and again and again….

Bad Luck Magnet. Amazing how money always finds a way to get spent, isn’t it? But for the Bad Luck Magnet, expenses are drawn to his bank balance as if by some unseen force. The car breaks down. The stove breaks. The kids get sick.

Penny Amnesiac. You go to the store and fill your cart, keeping a “rough” tally of what it will all cost, only to be shocked by a twice-as-high total when you check out. You never reconcile your checkbook – heck, most months you don’t even open the envelope. The bills coming in the mail are always higher than what you expected. And when those credit card statements come in, all those “little” purchases you made without thinking have added up to a heart-stopping balance.

The Softie. You’re a favorite among friends and family because they can always count on you for help. As soon as word spreads that you’ve sold your structured settlement, they start hitting you up for one thing or another. They’re masters of the sob story, and they always have a good reason to borrow a few bucks. And they always promise to pay you back THIS time.

Sound familiar? If so, and you still want to sell your settlement, assume that you’ll go through your money faster than you expect. What’s your backup plan? Do you have a job or some other source of income? If you’re not able to work, how will you make ends meet without your settlement? Structured settlements are often intentioned to save the recipient from himself – to keep him from spending the money too quickly. If you’re one of the people described above, maybe keeping your settlement is the right idea.

Still determined to sell? You’ll find another essential question to ask yourself next post.

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.

This is the second in a series of posts with questions you should ask yourself to determine if selling a structured settlement is a good idea for you.

Essential Question #2: How am I going to spend this money? Previously, we talked about the pitfalls of, and alternatives to, using the sale of a structured settlement to pay recurring bills. What if you have other plans for the money, however? What if you have something really special in mind?

Investing It. If you plan to put your cash infusion into some other investment vehicle, this is almost certainly a losing proposition. Remember, the sale of your settlement will net you a lump sum of cash lower than the total you would have received over time. Unless you’ve found something that’s going to pay you phenomenal returns, you won’t make up what you lose. Does your planned investment purport a higher interest rate than anything else out there? It’s definitely high-risk, and potentially fraudulent. Planning to invest in the surging gold or silver markets? With these at all-time highs, it’s tempting, but trees don’t grow to the moon, and there are plenty of predictions that prices will soon tumble. Investing in dirt-cheap real estate, hoping to turn a profit? Maybe – but with home values in many parts of the country still dropping, prepare to wait for that big payday.

Most importantly, if an investment advisor is offering you a “sure thing,” run away. Fast.

Starting a Business. Nearly everyone dreams of being their own boss. But businesses fail – often. What is the true likelihood yours will succeed? Even if you’re convinced that your idea is a winner, what’s your backup plan if you lose? New businesses tend to gobble money – will the sale of your settlement cover the costs, and then some? Is there any other way to fund this venture, such as a Small Business Association loan, or teaming up business partner?

Buying a Home. The depressed housing market is great for prospective buyers, and deals abound. Owning your own home can still be a great investment. But, again, consider how you plan to make ends meet without your structured settlement. Do you have a stable job? Are your monthly expenses under control?

Loaning Money to Family. So a parent, sibling, or child needs money, and is tugging at your heartstrings to get it. Can they answer hard questions about why they need the money? Even if you help them out, is the problem going to persist? Are they offering promises of repayment that are long on emotion but short on specifics? And if they fail to pay you back, will you still be able to survive financially? Or even emotionally? You should almost always answer “no” to intra-family lending, even though you might not be welcome to the next family dinner.

So, if you’ve given it some serious thought and you still want to sell, and you know just how you’re going to spend that money, there are still more questions to ask yourself. Another one next post.

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.

If you’ve got a structured settlement, you may have been approached to sell it for a lump sum of cash now. Or, you may have seen a TV ad that has convinced you that a bird in the hand is better than two in the bush, so to speak. But is selling a structured settlement for quick cash now truly a good idea? Before you proceed, there are some hard questions you’ve got to ask yourself.
Essential Question #1: Do I absolutely need this money right now? This is probably the most crucial question to ask. Whenever you sell a structured settlement, no matter how good a deal you’re offered, you will get less in total than you would have gotten over time. Companies that buy structured settlements are in business to make a profit. Their goal is to collect more over time than they paid to you, and the better they are at making money, the slicker their ads.

So, selling your structured settlement is never going to make you a profit. But if you’re facing a financial emergency, a speedy cash infusion could make this the right option for you. To determine whether you really need this money right now, ask yourself:

Is this truly an emergency? It’s easy say to “Yes!” to this question, but really think it through. A life-or-death situation is certainly an emergency. Bills coming due? Car repairs? Maybe not. You may be able to put off your “emergency” longer than you realize.

Will the amount I get from selling my settlement take care of this emergency in full? Is this a one-time deal, or a recurring problem? Will the money you get from your settlement cover the entire amount? Once you sell your settlement, it’s gone – then what? If money problems are habitual for you, it’s time to find the root cause (Too many credit cards? Spendthrift spouse? Substance abuse?) and deal with it now.

Is selling my structured settlement the only way to deal with this emergency? There may be other options. If you’re late on monthly bills like credit cards, talk to your lender and try to work it out until your next settlement payment comes, or check into credit counseling. If you own your home, a home equity loan or reverse mortgage might be a better way to access cash. If you have retirement accounts, like a 401(k), 403(b), or IRA, you might be able to draw some of the money out or take a loan against the balance. And although you might have to swallow your pride, don’t overlook public assistance. Utility, cell phone, and cable providers often provide hardship waivers or reduced-price services. Government and nonprofit organizations can provide help with basic necessities. Maybe even friends or family can help – just be sure to pay them back. The goal is to get you through to the next payment.

When you sell a structured settlement, you are selling a piece of your financial future. So, if you’ve answered essential question #1 and decided it’s still the way to go, it’s time to ask yourself the next essential question. We’ll get to that next time.

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.

If you have a structured settlement that you’d like to sell for a lump sum of cash now, you absolutely shouldn’t go it alone. The process can be complicated, and you need to make sure you’re getting the best deal and that your rights are protected. You need a lawyer, but how do you find the right one?

Ask Around. Try asking friends, family, or coworkers if they know someone who’s been in your shoes. Find out which lawyers they used – hopefully with a good result. This will give you a list of names – a good starting point for your search.

Just keep in mind that this is only the beginning. If the referrals you’re getting are to lawyers who specialize in an unrelated area of the law, they won’t be much help. A company that’s approached you to buy your structured settlement is also not a good source for a referral. And while your family may really want you to hire a relative or family friend who just happens to be a lawyer, that’s probably not a good choice, either. You need someone independent, objective, and qualified.

Referral Services. In addition to personal referrals, you can go online. Any Internet search will yield numerous legal referral services. Every service is different, but most will let you narrow your search by the attorney’s area of expertise. A lawyer who lists finance, contracts, business law, or the like might be a good fit. If the attorney’s education and years of experience are listed, too, consider them. Start making a list of prospective contacts.

Bar Associations. Once you’ve narrowed down your list of prospective attorneys, check to see if they are members in good standing with their bar association – you can also do this online. Bar associations’ websites may also show whether the attorney has been disciplined in the past.

Ask Questions. Once you’ve got a list of names that you think have the right background to help you, start asking questions. Arrange for a consultation to ask about qualifications in person. Has the attorney ever handled the sale of structured settlements? How many? How will she make sure your rights are protected? How will he keep you updated on the status of your case? How long does it usually take to complete the sale?

Most importantly, determine your comfort level with the attorney – this doesn’t necessarily mean that you like this lawyer, but whether you are confident in his/her ability. You need an advocate, not a friend. Trust your gut. If you don’t feel like you’re in good hands at the beginning, that likely won’t change – go to the next name on your list.

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.

When an individual is awarded an annuity as a result of a lawsuit or winning a state lottery, they often consider selling all or part of their annuity instead of waiting to receive their money. A lump sum payment is an attractive option to someone who needs to use the money to meet expenses, pay for higher education, or even start a business. They can elect to sell a portion or all of their future payments to someone else in exchange for a discounted lump sum payment today. The “resale” of these annuities are Secondary Market Annuities.

A secondary market by definition is the market where investors buy securities or assets from other investors rather than from an issuing company. However the secondary market applies to almost anything including annuities, mortgages, lottery payments, structured settlements, and loans. Investors trade previously-issued securities without the involvement of the issuing companies. For example, if you wish to buy Wal-Mart stock, you are dealing with another investor who owns shares in Wal-Mart. Wal-Mart (the company) is not involved in the transaction in any way.

The secondary market can be further broken down into two categories, the auction market and the dealer market. In an auction market, individuals that want to exchange securities congregate together an announce the price at which they are willing to buy or sell. This is commonly referred to as bid and ask prices. The most common example of an auction market is the New York Stock Exchange. There are auction markets all over the world but none more famous than the NYSE. A dealer market, however, does not require the parties to be in the same location because they are joined together through an electronic network. The most common example of a dealer market is the Nasdaq. In a dealer market, dealers, who are known as “market makers, provide firm bid and ask prices at which they are willing to buy and sell a security. The theory is that competition between dealers will provide the best possible price for investors. Secondary markets can further be broken down into third and fourth markets. These types of markets deal with large volume transactions which are usually between brokers and dealers.

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.