News and Tips on structured settlement transfers.

Posts Tagged: sell settlement

3
Jun 11

Structured Settlement Sales: Finding Quality

No matter if the buyer of your structured settlement payments is a large corporation, a smaller group of investors focusing on such purchases, or even a single individual they will all share some basic qualifications and characteristics that are beyond doubt.

The company you choose to buy structured settlements from you should be a company with a legally recognized structure, should have a good track record, including success with court approvals (which indicates fair disclosure practices and fair dealings), and should be able to provide enough proof to show that they have the means to fund your transaction. Beyond these basic qualities, there are others things that you should look for when choosing a partner to buy structured settlements, and legal responsibilities that all buyers are obligated to by law (although the laws do vary from state to state and country to country).

If you are skeptical of the idea of selling structured settlement payments, you are not alone; and you do have cause to be. Selling your annuity payments is serious and will have several financial consequences which could be either good or bad, depending on your situation. Notably, selling structured settlements is not the right choice for all annuity beneficiaries, but it is a very good opportunity to access needed cash in many circumstances. It should also be noted that certain organizations, such as the National Structured Settlements Trade Association, have publicized the fact that a number of media and organizations have called attention to the practices of some sellers. The Association is not necessarily saying that it is a bad idea to sell your annuity payments, but that the process does certainly require that buyer (or in this case seller) beware.

The option to have a third party buy structured settlements presents a very useful financial opportunity for many annuity recipients. This is a practice that can be put to very good use when handled properly with a reputable annuity payment buyer; but it is also one with the potential for problems. This is a decision that should not be taken lightly or gone into in haste. Selling structured settlement payments requires patience, due diligence, and most of all the choice of an upstanding annuity buyer. The path to finding that elusive person or company who will buy structured settlements starts with learning the real first stage basics about who will buy structured settlements, and continues with learning what your options are and how to find the right funding partner for you.

While I am not endorsing any specific company, nor am I even advocating the sale of your structured settlement- These groups have been listed in the top 10 buyers in relation to the qualities I have written about here today.

1. J.G. Wentworth
2. Peachtree
3. Settlement Quotes, LLC
4. Sovereign Funding
5. Solid Funding
6. Singer Asset
7. Woodbridge
8. Genex Capital
9. Quote Me a Price
10. Stone Street

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.

2
Jun 11

Selling Your Structured Settlement: Haste Makes Waste

Most often when you have come the decision to sell your structured settlement payments it is because you have run into some specific financial need that must to be attended to immediately but can not be handled by your payment amounts. The moment when you have decided to sell is the exact moment when you are most vulnerable to shady business practices, low rates of return, and commission hungry sales people. Pause for a moment and consider how you will protect yourself from the traps laid out for you by some companies wanting to buy your settlement payments. Let’s review things to be wary of when selling.

While this is not to be thought of as a complete list of all the dangers, thinking on these topics before going into negotiations can help you make the right choice on selecting an agency that will treat you fairly. The simple fact of it is that if nobody was going to make money on the purchase of your settlement then no agency would buy it. However, you can find companies to sell to that will treat you well while working on an ethical profit margin for themselves. While discussing the sale, watch for these warning signs that you may be dealing with the wrong company.

An unwillingness to give full disclosure. This is your money we are talking about here. Any company that shies away from fully disclosing all information and explaining the fine points to you is probably trying to hide something from you. These smooth talking “used car salesmen” of the finance world will try to misdirect you while adding hidden costs, unnecessary fees, and even list separate percentage fees under different categories to give you the impression that you’re getting more of your money than you really are.

Anyone that offers to get you cash in weeks or even days. Often you will hear terms like “rapid fund release”, “expedited returns”, or “fast funding”. In this case they will tell you that only their company can offer such quick cash when really they have no real control over how long the process will take. They just want you to sign. As tempting as it is to hear you can have your money in days when you are facing financial hardships, it is simply not possible. The process of selling your structured settlement must go through court approval. It is true that with accurate filing and good preparation you can make this process as painless as possible, but you can count on it taking at least 45 to 90 days to complete.

Poor customer service. Remember! The companies you are talking to want what you have for sale. They are working for you! The easiest way to test the service is to ask questions- a lot of questions. Your sales representative should be right there with an answer to most every question you can think of, and if they can’t answer on the spot you should receive a reply back quite quickly. Quality customer service is a basic principal. If the company you are looking at can not even provide this then ask yourself how well will they handle your court petitions? How many errors will they make resulting in the courts denying your request and further delaying the day you get your money? This is a good sign it is time to walk away and find another company that cares about the sale.

Obviously, finding the company that best fits you for the sale of your structured settlement is going to take some time. Just remember; going slow in the beginning will save yourself many headaches down the road.

1
Jun 11

Selling Your Structured Settlement: How to have your cake and eat it too

For this article I will be assuming that you have already sought out sound financial advice, explored other options to raise ready funds to meet what ever immediate need you may be facing, and have come to the conclusion that it is time to sell your structured settlement.

Often when people consider selling their structured settlement they are under the assumption that it is an all or nothing deal. This is, quite simply, not the case. For those that have received such a settlement; part of the reason is to insure a continuous source of income over a long period of time to enable the recipient to handle long term living expenses, on going medical bills, or for some other long term recurring expense. While it is tempting, especially when facing a short term financial crisis, to cash in on your long term safety net for a short term large cash sum the worry is still there about what you will do when your large sum is gone? Let’s talk about a number of options that will allow you to have your cake and eat it too.

As I mentioned previously, just because you have decided to sell your structured settlement does not mean you have to sell all of the settlement’s value. We will discuss, in simple terms, the two most commonly available options that allow you to retain some of that value for later use. These options are something you will want to discuss with the agencies you are considering selling to during your shopping around step of the sale. First let’s touch on my preferred option. You may sell your settlement in such a fashion that you receive a smaller portion as a lump sum to satisfy your immediate need while the company you have chosen for the sale will then begin taking a portion of your regular payments for the remainder of the term of your settlement. In this case you get the lump sum to take care of what ever reason made you choose to sell your settlement in the beginning, while also continuing to receive some amount in payment for the future.

Another option that follows a similar tact is to, once again, sell just a portion of your settlement so you can receive the lump sum you need and you allow your chosen company for the sale to collect all your payments until a predetermined time has passed by. Here, your needs are quickly met yet you have the peace of mind of knowing that at a future date you will once again begin receiving your regular payments in their full amounts.

It is up to you to determine what method suits your needs the best, however by using either of these simple sale modifications you are able to take care of immediate needs while still reserving some portion of your settlement for future security. Another good point to mention for your consideration is that, obviously, the less you sell the less you loose in fees and costs for selling part of your settlement; meaning more money stays with you where it belongs.

3
May 11

Selling A Structured Settlement – Elements of the Deal

While the idea of selling a structured settlement for a lump sum of cash is undeniably attractive, you should understand what will be involved in the sale of your structured settlement before you dive in.

The Discount Rate. If you’ve gotten offers to sell your structured settlement, you may have been taken aback at how much less you’re being offered versus the face amount of the payments you are selling. This is because of the discount rate. The discount rate is a percentage applied to your stream of structured settlement payments that allows the buyer to calculate the lump sum he will offer you. This discount rate is intended to cover all of the structured settlement buyer’s costs of the transaction, his overhead (office and staff costs), and, of course, his profit. Think of it as interest in reverse; if you borrow money, you pay interest in order to use someone else’s money. So, when you get a lump sum, you are paying a discount rate in exchange for the ability to get the use of your money now, instead of having to wait.

Fees and Charges. The discount rate, as noted earlier, is intended to cover the buyer’s costs. This includes the cost of processing your deal. So, if the buyer tries to charge you a “processing” or “handling” fee in excess of the discount rate, this should be a red flag to you. You should not have to pay extra fees to sell your structured settlement.

Shop Around. Don’t be seduced by the initial offer on your structured settlement. You should always get competing offers from several different companies. A great way to do this is to use a site like www.quotemeaprice.com, where you can advertise the terms of your settlement and what you want to sell, and let competing buyers give you their best offers.

Check Out Prospective Buyers. A simple Internet search of any buyers you’re thinking of using can yield other sellers’ complaints about them. And, always make sure to check out prospective buyers through the Better Business Bureau. A typical complaint about structured settlement buyers is that they change the terms of the deal after the initial offer, so be on the lookout for a company trying to do this to you. Sometimes a company will float a high offer just to get your business, only to cut it down later. A company may even retract their offer altogether, if they’ve decided that they won’t make enough profit on it.

2
May 11

Selling Your Structured Settlement – What to Look For

You should give serious thought to whether selling your structured settlement is the best choice for you. But if you’ve given it lots of consideration and decided that it’s your best option, here are some potential pitfalls to look for.

Don’t Be Sold on the First Bid. You should use a site like www.quotemeaprice.com to get bids from competing structured settlement buyers. Even if the first offer you get is attractive, always get comparative offers. Don’t let the competing bidders know what the others have offered. This will ensure that you get independent, objective bids.

Make Sure the Buyer is Reputable. You’ll likely get bids from the big, well-known players in the structured settlement business, as well as some lesser known bidders. You should check out all of the bidders that you’re considering using. Check them out with the Better Business Bureau to see what kinds of complaints have been filed against these companies, and how or whether they’ve been resolved. Typical complaints are that the structured settlement buyers changed their offer after the initial bid; took longer than promised to complete the sale; or tried to sneak in extra fees and charges. If you see lots of the same complaints against a structured settlement buyer, you should consider it a red flag, and consider using a different buyer.

Read Everything. Look over any documents you get thoroughly to ensure that the structured settlement buyer you have chosen is honoring his bid to you, and that he is not trying to add extra fees or charges to the purchase of your structured settlement. The buyer’s discount rate – the rate by which the structured settlement buyer is reducing the face value of the payments you are selling to the lump sum he is willing to give you – should cover his costs, so if the buyer is trying to tack on processing or handling fees, back out of the deal. Ask lots of questions and make sure you thoroughly understand what you’re agreeing to. If the buyer becomes defensive, refuses to answer your question, or tries to convince you that you’re stupid for asking, back away from the deal.

Beware Suspicious Promises. Most structured settlement purchases take at least 45-60 days to complete, so if a buyer says he’ll get it done sooner, he’s probably making a promise he can’t keep.

Beware Excessive Pressure. If anything about the deal doesn’t seem right, if the buyer seems to be changing terms on you or adding fees, you should not sign off on the deal. The buyer may try to play upon your fears to get you to sign, or may use scare tactics. Take a step back and don’t let yourself be unduly pressured.

30
Apr 11

Why You Need Objective Advice Before Selling Your Structured Settlement

Structured settlement factoring companies – the buyers who take your payment stream in exchange for a lump sum – are in business to make money. They are not in existence to help you, and they are not on your side. This doesn’t mean they are evil; it simply means they are in business. As a result, it’s important that you look out for your best interests before you agree to sell your structured settlement.

Get Advice

First, if you can, tell a trusted friend or a financial advisor that you are considering selling your structured settlement. Another person may be able to give you objective suggestions for other ways that you can get the cash you need, or meet your financial obligations, without selling. A financial advisor may also be able to help you get alternative financing, or work with you to restructure your debts to something more manageable. Even though financial advisors charge a fee, it may be well worth it, considering how much you will give up if you sell your structured settlement.

Watch Out For Pressure Tactics

While selling a structured settlement is new for you, it is just another day for the structured settlement buyer. They know the hopes and fears of structured settlement holders, and may try to play on your emotions to get you to sign on for a deal in a hurry, or agree to a deal that is not the best for you. Avoid this kind of pressure. If possible, get a friend to be with you whenever you are dealing with the structured settlement companies to give you a second opinion, and get you to hold off before signing in a hurry. If you don’t have anyone who can serve in this role, promise to wait at least 24 hours before making a decision – write it down and post it prominently if you need to. Tell the company that you have a financial advisor who must look over every aspect of the deal, even if you don’t really have such a person. A company may try to convince you that the deal will be off the table if you wait; this is even a greater red flag to back away.

Get Legal Advice

Most states require structured settlement holders to get legal advice before selling their structured settlements. Choose an attorney who is independent (avoid any attorney who is “preferred” or “recommended” by the structured settlement buyer) and who has experience with structured settlement factoring transactions. Listen carefully to his or her advice. If s/he tells you that selling is a bad idea, reconsider your decision to sell.

23
Apr 11

Before You Sell Your Structured Settlement, Read This!

If you’re desperate for cash, the ads promising quick cash for your structured settlement can be really tempting. But keep a few things in mind before you decide to go ahead.

Think of What You’re Giving Up

All structured settlement factoring companies use a discount rate to figure up what they will pay you for your settlement. That means that the lump sum you will get in exchange for the payment stream you’re selling will be less than the total amount of the payments – sometimes a lot less. The discount rate ensures that the structured settlement buyer’s costs will be covered, and also that he will make a profit on the purchase of your settlement.

What Will You Do When It’s Gone?

Once you sell your structured settlement, it’s gone. Structured settlements are intended to provide for your living and medical expenses, so without it, how will you cover your needs? If you have no other income and are not able to work, seriously reconsider how you will survive without your structured settlement payments.

Do You Really Need To Sell?

It’s easy to become convinced that you are desperate for cash when a large expense pops up. But really consider what those expenses are. Is there some other way to get what you need, or pay the bills? If it’s a debt you wish to pay, try restructuring it or working out a payment plan. If it’s something you think you need to buy, reconsider whether you really need that new car or vacation. Even if you really need money, if selling your structured settlement won’t take care of the need once and for all (for example, if it’s only enough to pay some of your debts), don’t bother – you’ll be no better off and your structured settlement will be gone.

Not As Easy As You Think

Beware structured settlement buyers who make the process sound fast and easy. Even if everything goes smoothly, you won’t complete your sell in less than 30-45 days. If you need cash faster than that, you are out of luck – no matter what the settlement buyer promises you.

The most important thing to remember is that a structured settlement is intended to protect and provide for you. Structured settlement buyers are in business to make a profit, not to help you. Before you sell, really give some hard thought to what your life will be like without the settlement payments.

22
Apr 11

Cashing Out Your Structured Settlement – The Essentials

While the ads featuring everyday joes and janes singing about getting cash now seem whimsical and appealing, selling your structured settlement is a serious decision, nor is it as fast and easy as some companies make it out to be.

Selling your structured settlement is, in legal terms, called a structured settlement factoring transaction. By factoring, it means that you are giving up a future stream of payments for a lump sum today which will be less – possibly significantly less – than the total amount of those payments.

Every state has laws that govern structured settlement factoring transactions. These laws are meant to protect sellers from unscrupulous buyers. As a result, there is a controlled process that must be followed for every structured settlement sale.

Before you choose a buyer for your structured settlement, be sure that you’ve shopped around (www.quotemeaprice.com makes this easy by allowing you to post the details of your settlement and get competing bids), and be sure that you’ve checked out the prospective buyer through the Better Business Bureau. If the buyer you’ve selected has lots of unresolved complaints, you might want to reconsider selling.

Most states require structured settlement sellers to seek out the advice of a lawyer to see if selling your settlement is right for you. Make sure to choose a lawyer who has seen structured settlement sales before. Make sure the lawyer is independent, too; don’t use a lawyer who is recommended or “preferred” by your structured settlement buyer, because s/he may not have your best interests at heart.

Depending on the state in which you live, you may also have to seek out a financial advisor for his opinion on the sale. Even if it isn’t required, you might want to talk to one anyway – s/he can tell you what to expect from the sale of your structured settlement, and may be able to point out other options to get the cash you need, rather than selling your settlement. As with the lawyer, make sure your financial advisor is independent of the buyer of your settlement.

If you decide to go ahead and cash out your structured settlement, it will have to be court-approved. You may even have to appear in front of the judge yourself. The judge will review the details of the sale, as well as the reason you’re cashing out, and will pay particular attention to the discount rate. If the judge believes the sale is not in your best interest, s/he can deny it.

The final step is the cooling-off period. This is usually a few days after the sale is approved by a court where you can decided to back out of the deal altogether. Use this time to consider seriously if selling your structured settlement is truly your best option.

12
Apr 11

What Can Derail Your Structured Settlement Sale

Plenty of things can go wrong when you’ve decided to sell your structured settlement, and may even cause the sale to be cancelled altogether.

Change to the Deal. Once you’ve chosen a buyer (hopefully you’ve shopped around on a site like www.quotemeaprice.com) and decided on a lump sum you will receive for the sale of your structured settlement, the buyer may try to change the deal. This is a common complaint against structured settlement buyers, and should be a red flag to you to walk away. Same goes if the buyer tries to introduce new fees that weren’t part of the deal to begin with.

Advice. Your state’s laws will likely require you to get legal and possibly also financial advice from a professional. This is meant to be an objective opinion as to whether the sale of your settlement is in your best interests. If the lawyer or financial advisor counsels you against selling your structured settlement, they can’t stop you from proceeding, but you should seriously consider their advice. They may be able to help you resolve whatever financial problems have caused you to consider selling, or help you come up with other options for raising money.

Foot-Dragging. Structured settlement buyers are frequently accused of intentionally slowing down the sales process. They may do this if they are trying to time their investments, if they’re trying to secure the cash that they will use to pay you, or if they are considering other deals.

Naysaying Judge. One of the final steps in the structured settlement factoring process involves putting your proposed sale in front of a judge for his or her approval. The judge may review the sale and conclude it is not in your best interest to sell, especially if the buyer is charging a discount rate that the judge believes to be excessive.

Cool It Down. Even after the entire process is completed, you will still have a “cooling off” period during which you can choose to nix the entire deal. This is your last chance to think hard about whether selling is right for you.

No Payment. As terrible as it may seem, there have been instances in the past where a structured settlement factoring transaction was completed, but the buyer was short on funds and did not pay the seller. If this happens, a reputable company should cancel the agreement, but there have been companies that have refused to cancel the agreement. The end result is, the seller gave up his settlement and got nothing in return. Your best defense against this is to do due diligence – thoroughly check out any prospective buyers to see if they’ve done this in the past.

9
Apr 11

Why Selling a Structured Settlement Takes Longer than You Think

The ads all promise “cash now!” but the truth is, the sale of your structured settlement is going to take quite a bit longer than that.

The process of selling your structured settlement will take, on average, 45-60 days to complete, depending on which state you live in.

Why the delay? After all, isn’t it your money? Aren’t you giving permission to sell it?

The answer is, it’s the law. All states have statutes governing structured settlement factoring transactions. As a result, there is a strict process that must be followed, and specific steps, often with specific waiting periods.

After you choose a buyer for your structured settlement (and hopefully you’ve used a site like www.quotemeaprice.com to shop around for the best deal), there will be paperwork for you to review and sign, and send back to the seller. This is one reason for the delay. Your state may also require you to get legal and possibly financial advice regarding the transaction, so you will need even more time to find these professionals and sit down with them to review your sale. State processes require this so that you will get independent advice as to whether the transaction is suitable for you, and in your best interests. Even if your state doesn’t require you to get this advice, you should do it anyway.

Once all the contracts and agreements have been signed, and you’ve gotten professional advice, your structured settlement sale will need to be approved by a judge. Depending on your state’s law, you may even have to appear in court. So, this takes more time to get your court date on a docket.

Once all this is done, most states grant a “cooling off” period during which you can change your mind and cancel the entire deal if you want to.

While this may seem frustrating, especially if you need cash in a hurry, the entire process is designed to protect you. Structured settlements are intended to provide for your needs over a period of time, so selling it should not be a light decision. State processes are also designed to ensure that you get objective opinions (lawyer, financial advisor, and judge) as to whether selling your settlement is a good idea, and giving you the opportunity to think it through one last time. So, no matter what a buyer promises, don’t expect to get cash at light speed.

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