News and Tips on structured settlement transfers.

Posts Tagged: selling payments

8
Jun 11

Dare to Say No to Structured Settlement Advances

In my last article we discussed the option of taking a cash advance on your structured settlement while your case is still open. This can be an attractive offer when you are facing some sort of financial crisis and are “expecting” to win a structured settlement, but haven’t finished the court or settlement process yet. As I said before; You do have the option of applying to various companies to take an advance out on the estimated value of your settlement. Sounds easy. It is. Sounds quick. It is. What it isn’t.. is cheap or necessarily wise. Last time we went over the “Pro’s” of such an advance, and they are many. However, this time we will be focusing on the “Con’s” of such an arrangement.

Expense. While it is true that getting an advance may allow you to hold off on settling to a point where you come out with a larger lump sum, the reverse is also true.. You may come out with much less. As a rough example of costs you can expect to pay $1500- $2500 per $10,000 advanced to you. Also, while you are waiting for your case to settle, your cash advance on your future structured settlement payments will accumulate interest until settlement is made. This can be as low as 2% or as high as 25% depending on the lender you have chosen. Here you must remember that the longer your case takes to settle, the more interest you will have to pay.

Scams. This is a prime time for unscrupulous individuals, businesses, or agencies to take advantage of your need and get you to sign a contract containing many hidden fees leaving you with little to nothing after your settlement is done. If you are considering taking an advance I can not stress enough the importance of reading all the fine print, having everything verbally explained to you, and possibly having any contracts reviewed by an outside attorney.

Can take only days or it could take several months. In many cases you can receive your advance in a matter of days, however it is also possible that after signing for your advance that these companies will include delaying clauses resulting in a situation where you would have received your cash sooner had you never done the advance.

When taking a loan or an advance, take time to calculate what you need – don’t ask for what you want, but ask for what you need. Many people make the mistake of asking for more than they need. If you have other money sources that cost more, then you can justify asking for more, but try to keep within reason – you don’t want to be dinged in high interest rates and fees unless absolutely necessary. Anytime you get a loan or advance, the cash you get costs something.

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.

7
Jun 11

Cashing in on your Structured Settlement Before you Settle

So, what do you do when you are facing some sort of financial crisis and are “expecting” to win a structured settlement, but haven’t finished the court or settlement process yet? Many people would answer that you’ll just have to try and hold off those creditors, wait on that medical procedure, or pass on that business venture until after you’ve won your settlement. To put it simply, that’s just not true. You do have the option of applying to various companies to take an advance out on the estimated value of your settlement. Sounds easy. It is. Sounds quick. It is. What it isn’t.. is cheap.

For this article we are going to be looking at the “Pro’s” of advance funding on your future structured settlement payments.

Low to no risk to you. If you do elect to apply for an advance on your payments but, for one reason or another, you don’t win your case you have no obligation to repay the amount of the advance.

Cash as fast as possible. If you were to choose to sell your payments after the settlement has been made it can take between 45 – 90 days to go through the court process. However, with an advance prior to the settlement you can often find a lender able to put cash in your pocket in as little as 72 hours.

Easier than a bank loan. If you are in need of money immediately and are thinking that your trusted bank will be there to help you out.. You’re often mistaken. But one thing to think of when considering an advance on your payments is that your credit has absolutely nothing to do with your application.

Buys you time. Often people will settle for a lesser amount simply because they need the cash immediately. With an advance you have the cash to wait it out for the largest settlement possible. This could easily surpass all payments and fees from the advance while leaving you with a nice extra lump of cash.

Take care of medical problems now. With an advance on your future settlement you can have peace of mind when it comes to medical procedures and bills. Why wait for something that may not be covered by your insurance when you can get cash now to take care of your medical problems?

Remember, when taking a loan or advance you should always take the time to calculate the amount you need- not the amount you want. Many people make the mistake of asking for more than they need for some luxury item and end up paying much more than they needed to in fees, costs, and interest. Keep in mind that anytime you get loan or advance, the cash you get will cost you something. And the more you get, the more it costs.

4
Jun 11

Selling Structured Settlements: Why Sell Now Vs. Later?

Today we will consider some of the positive reasons you may wish to sell your structured settlement payments for a lump sum now regardless of whether you have an immediate financial need or not.

1) Long Term Decrease in Value

The value of money over a short period of time often makes little difference. For example, a dollar today will most likely get you just as much value as a dollar tomorrow. However, the value of money becomes something to be considered when thinking about collecting the same amount from your structured settlement payments. Most payments last over a decade, some take over twenty years or more to completely pay out your collection amount. The value of money will, most definitely, fluctuate over such a period of time, while most structured settlement payments are not adjusted for inflation. That regular payment you are getting now may only pay for 10% of what it will today in 20 years.

2) Gaining Interest Income

If you collect annuity payments in a lump sum, you might get the even payments to space out your income, but if you invest the money in a smart and safe way you can live off the substantial interest. The problem words here are “smart” and “safe”. This would require substantial research on your part to find an opportunity to use your money where you will still be receiving as much, if not more, per month than if had not sold your settlement payments.

3) Investing

If investing safely is not something you are interested in, you might be more interested in investing the money in some sort of venture capital. Now, while this is considered to be more risky the potential for gain is that much greater. You may want to contribute to the growing business of a friend or family member with your new-found wealth and this would be possible to do if you chose to collect your structured settlement payments in a lump sum.

4) Life Span

While this is something that people might shy away from thinking about, the realities of collecting a twenty year structured settlement payment is that you might not live long enough to collect the entire sum. When you die, usually the remaining uncollected payments are returned to the party issuing your payments. While it is possible in some rare situations to “pass down” your payments, it is quite uncommon. This, then becomes money that neither you nor your inheritors will ever see. Though, if you had received a lump sum and set up some sort of interest account, a personal investment in a business or venture, or even kept your money as savings; then in the advent of an untimely death you could simply will any of these to your inheritors.

3
Jun 11

Selling your Structured Settlement: Basic Q & A

Here, in this article, we are going to go back to some basic questions and answers people often have when thinking about selling their structured settlement payments.

Q) Can I legally sell my payments?

A) Yes. However, most states have a Structured Settlement Protection Act which outlines the requirements that need to be met in order to sell future payments. Some of those requirements are as follows:

1. The company purchasing structured settlement payments must provide full disclosure about the financial terms of the transaction.
2. A hearing is held where a judge decides whether the transaction is in the best interest of the structured settlement recipient. Such factors such as the discount rate of the transaction, reason for selling the payments, and other income sources are taken into consideration before approving such a transaction.
3. The judge must issue a court order approving the sale of the transaction.

The list above does not stipulate all of the requirements of a structured settlement factoring transaction.

Q) What happens if the Settlement Agreement has anti-sale or anti-assignment language?

A) First of all, anti-assignment or anti-sale language means that the annuity payments cannot be sold or transferred. However, as mentioned above, most states have a Structured Settlement Protection Act which states that a judge must approve the transfer of such payments. A judge has the power to approve the sale even if anti-assignment language exists in the Settlement Agreement or Annuity Policy.

Q) Can an annuitant sell a portion of their structured settlement payments?

A) Yes, Yes, Yes! I can not stress this fact enough. Considering that on one hand you do need to solve a financial problem immediately or you wouldn’t be looking to sell your settlement payments, but on the other hand you want to protect a portion of your future earnings; this is often thought of as having the best of both worlds. You have the option to sell all or some of their structured settlement payments. Some companies will purchase the rights to a portion of your structured settlement payments, but instead of allowing the insurance company to continue to service the rest of their payments, the funding company will service the payments to the annuitant taking control of future sales of that annuity policy.

Q) Is the Lump Sum Payment received from the sale of a structured settlement tax free?

A) In most cases the lump sum payment received from selling the rights of a structured settlement are tax free. The same tax treatment is applied to the lump sum payment that was given to the previous structured settlement payments. If an annuitant’s previous payments were tax free, then the money received from the sale of future payments will be tax free as well.

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

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.

Let Companies Compete to Buy your Structured Settlement!

Full Name: This field is required. Phone: This field is required. Email:

Categories