News and Tips on structured settlement transfers.

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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.

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