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Structured Settlement – Fact vs. Fiction

If you’ve been swayed by all the promises in those late night ads telling you to sell your structured settlement , read on.  You can’t always believe what prospective buyers say.  Here are some of the more likely promises you’ll hear.

Get Your Money Now!  “Now” is a relative term.  No matter where you live, and no matter what you’re promised, all states have laws that govern the process of selling a structured settlement, and the are specific steps that must be followed.  Depending on where you live, the sale will take at least 45-60 days from beginning to end, and can take even longer in some places.  Before agreeing to sell, become familiar with your state’s process to avoid a nasty surprise.  Beware any buyer who promises a turnaround sooner than 45-60 days.  If you need your cash sooner than that, you need to find another option.

We Pay More!  Well, maybe, but unless you compare offers among several competing buyers, you don’t really know how good their offer is.  Use a site like QMAP to solicit bids from several buyers, then do some comparison shopping.

Also, be on the lookout for companies that change their offers after the contracts are signed.  Part of your due diligence should include checking the Better Business Bureau for complaints against potential buyers, and many buyers have allegedly changed, or tried to change, their offers after the initial deal.  Sometimes a company will float a higher offer to get your business, only to change their minds later.  Or, they might pull the plug on the entire deal if something more lucrative comes along, or if they decide they’ve given you an offer that’s too high.  Alternatively, they might float a low offer in hopes that you’re so anxious for a quick sale that you’ll take it.

And always know that a buyer will pay you far less for your structured settlement than you would have received over time.  Buyers use a discount rate, often in the double digits, to decide what they’ll pay for your settlement.  So give serious thought to whether selling is your best or only option.

No Hidden Fees!  You should get a full and detailed description of the offer up front.  Plenty of structured settlement sellers have claimed that buyers took legal, processing, and other fees out of their settlements.  Check the laws in your state that govern the structured settlement factoring process to ensure you’re not paying a fee that the seller is supposed to pay.

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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