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Structured Settlements — No Comments
11
Nov 10

Five Important Steps Before You Sell Your Structured Settlement: Introduction

With so many companies promoting selling all or a portion of your structured settlement, you may find yourself considering this option.  Whether your structured settlement is the result of a worker’s compensation claim, personal injury, or property loss, the option to convert your structured settlement to a lump sum could becoming increasingly more attractive as a means to meet financial demands.  Unfortunately in today’s economic climate, many are resorting to options they might not otherwise have considered.  Before making the decision to sell your structured settlement, it is important to arm yourself with the necessary information to allow you to make the best decision possible for your circumstances.  As with most things, there are both advantages and disadvantages to structured settlements.  One of the advantages is that the settlement guarantees a specific amount to be paid over a period of time.  This not only protects you from rapidly depleting the settlement, but it also provides a dependable revenue stream over the course of the settlement schedule.  Conversely, the disadvantages include the inflexibility of not being able to access the money when you need it and the loss of potential investment returns.

Prior to 2002 the tax benefits of a structured settlement benefited both the company making the payments and the recipient as the payments made were tax free.  In order to protect the injured party, Congress granted these tax benefits to structured settlements as a means to keep the injured from prematurely depleting their recoveries.   In order to prevent the factoring transactions from undermining the policy objectives of the structured settlement, Congress passed HR2884 which resulted in Internal Revenue Service 5891 requiring all structured settlement factoring transactions be approved by a state court.  The Structured Settlement Protection Act imposes a 40% excise tax on the net sale of a structured settlement that does not meet the requirements of the state and federal statutes.  All states with the exception of Vermont, North Dakota, Wisconsin, and Wyoming have passed legislation regulating the buying and selling of structured settlements.   Over the next five posts, we will be discussing five steps that are essential before you commit to sell a portion or all of your structured settlement.

  1. Do your due diligence
  2. Seek legal advice
  3. Seek financial advice
  4. Decide what you are going to sell
  5. Seek the best offer
Structured Settlements / Tips — No Comments
10
Oct 10

What to Look For in a Company When Selling a Structured Settlement

You hear the term “structured settlement” practically every day. Most often it will be in the context of selling it to certain companies.

Keep in mind that the purchaser is looking to make a profit. Your goal is to get the most money possible. Go slow in deciding when and to whom to sell. Do your research, take bids and insist that certain terms and rights be met. It is your money. You are in control. If the amount of the offer and the conditions of the deal don’t make for a fair exchange, look elsewhere.

Remember, you don’t have to sell the entire settlement. You can sell just a portion if you prefer.

Here are steps you can take to protect yourself and ensure you are getting the best deal:

1. Have an idea of what your structured settlement is worth, keeping in mind a fair discount rate. This discount is where the company’s profit comes from and why they are willing to purchase. If this doesn’t meet your expectations then maybe selling isn’t right for you at this time.

2. Make sure the company you’re considering is legitimate. As with any other business, the Better Business Bureau is an excellent place to start. You will also want to do a web search for complaints against the company. An easy way to do this is to just “google” the name of the company followed by the words “complaints” or “reviews”.

3. Don’t rely on the integrity of any one company. Get multiple quotes. Don’t share the offered amounts with the other companies who will be giving quotes. You don’t want a previous offer to be a factor in new bids. This is also a good way to weed out the not-so-good companies. If someone offers a ridiculously low offer they probably do not have your best interest in mind. Conversely, if someone offers an unreasonably high offer, this is suspicious as well. It’s fairly common to offer the highest initial bid and then do a series of stalls until the client is desperate to take a much lower offer.

4. When it is time to write the agreement, be sure it is laid out the way it was discussed.

5. Have a definite closing day. This varies by state, but eight to twelve weeks are normally sufficient. Insist that there are penalties in place such as an additional payment per day, due to you on closing, if the settlement company fails to close on time. It is possible for them to stall so they earn some extra interest on the money while they make you wait.

6. Know your rights. There are laws in place to protect your interests. Although it may seem like a nuisance, you will need to go through the court system in your state to have the settlement approved. This is for your protection.

Cashing out a structured settlement is a big financial decision so go slowly and plan carefully.

Structured Settlements — 1 Comment
26
Sep 10

What is the Basic Process Followed to Cash in a Structured Settlement?

Individuals receiving payments from a structured settlement often need to convert the settlement into a lump sum payment for immediate expenses. There are many companies in the business of purchasing structured settlements in exchange for cash.

No matter how desperate a seller may be for cash, it is important to understand the basic process involved in cashing in a structured settlement. Despite the hype seen on television and written in print advertisements, selling a structured settlement is a multi-step legal process that can take 90 days or longer to complete. It is allowable in only two-thirds of all states. Many settlements are structured in a way to prevent any option of a sale at all. Some agreements, while allowing the possibility of a sale, make the sale process so difficult or cumbersome to complete, that the option is prohibitive or woefully inadvisable.

Assuming that sale is an option, the basic process is as follows:

  1. The annuitant, (Owner) of the settlement selects a buyer. After sending details of the settlement to the buyer, the buyer makes a preliminary offer. If the owner is satisfied with the quoted offer;
  2. The owner sends the requested copies of the settlement agreement, underlying annuity contracts and other supporting documentation to the buyer. Then;
  3. The buyer sends a contract and disclosure agreement that states the terms and conditions of the contract and agreement in the offer to the seller. Once signed;
  4. The contract, related agreements, and supporting documents are submitted to a court for approval. The evaluation process and subsequent issue of an order of approval can take up to 90 days or longer. Once approved, money can be available within 5 to 10 business days.

Deciding to cash in a structured settlement is a serious matter. The seller is best served by seeking the advice of legal and financial professionals qualified to assist the seller in making an informed decision. Converting a structured settlement has permanent consequences for the seller and his or her dependants. Selling a structured settlement strips away the benefits of that continuous stream of income. Long-term settlements are built to provide continuous income to individuals with permanent or chronic disabling conditions. Perspective sellers should carefully consider the consequences of removing this long-term financial safety net.

If a sale is truly necessary, the seller should, at a minimum, check the track record, financial stability and integrity of a potential buyer. Not all offers are equal. A prudent seller will shop around and compare several offers to find the right fit.

Factoring Education / Marketplace / Sellers / Structured Settlements — No Comments
26
Aug 10

Cashing out Structured Settlement Payments

Structured settlement payments are paid in equal installments for a specific period of time. For example, a lawsuit of $1,000,000 (with 20 years of structured payments) is $50,000 annually or 240 monthly payments of approximately $4,166.67. Sources of structured payments are: from an insurance company, a lawsuit, as a result of death (guaranteed) or living (life contingent), and tax-free income. Worker’s compensation claims do not qualify as structured payments. If an annuitant (the person receiving the structured payments) needs the money in a lump sum, then a structured settlement factoring company may purchase the future payments.

What to Know Upfront

An annuitant will receive considerably less money for receiving a lump sum. When purchasing future payments, funders (used by factoring companies) assume all the risks associated with the structured settlement and must hedge against future inflation. It should be understood that factoring companies are in business to make money. Carefully weigh the options before considering (selling or) cashing out a structured settlement. The government’s Model State Structured Settlement Protection Act requires full disclosure of all terms of a sale.

The structured settlement payments received are generally tax-free. Tax benefits could be lost by cashing out future structured payments and state and federal taxes could further reduce the lump sum amount. That is why an annuitant should fully understand the ramifications of selling future structured payments.

Do Research First

Investigate a company’s BBB track record for any company complaints. A factoring company with more than five complaints, since its inception, should be avoided. Get several quotes before deciding on a company. Do not accept the first quote received because companies will bid low to increase profit. Never disclose a previous quote to a perspective factoring company.

Certified Funders

A factoring company uses funders that it certifies and they must meet minimum conditions. Minimum conditions for certified funders: an accredited BBB business, not merely a broker but have access to its own funding, maintain consistent best price practice, have fast service, have no default on any sale transactions, be in business for three years, be a U.S. registered company, have the ability to purchase future structured settlement payments in all 50 states and its territories, and no anti-competitive practices.

How to Cash out a Structured Settlement

The structured settlement information is put out for bid to certified funders and quotes are given to the annuitant to decide on a company. The annuitant completes forms and receives payment within 8 to 12 weeks. Good factoring companies will guarantee a closing date and if they mention “interest drag”, to delay closing, find another company. Interest drag is a tactic factoring companies use to make more profit by delaying the closing date. The closing guarantee should state that any delays will be paid per diem, to the annuitant, at the time of closing. A factoring company agreeing to this proves that there is no intention of delaying the closing date to gain additional profit.

Factoring Education / Marketplace / Structured Settlements / Tips — No Comments
23
Aug 10

Structured Settlement Factoring FAQ

How do I know if I need to sell my structured settlement?

If you are facing an unexpected financial crisis and have no other way to raise the cash you need to avert losing your home, paying medical bills or any other emergency, selling your structured settlement is a good option.

How do I find a company to buy my structured settlement?

Quotemeaprice.com will do the legwork and provide a marketplace for you to find the buyers who are willing and able to buy your annuity or structured settlement.

How does the marketplace work?

Just like an auction, different companies will bid on your note, lottery payment, annuity or structured settlement. You will get the most cash possible. This is all done on quotemeaprice.com. You do not have the headache of being called by multiple companies, and it saves you money. It is also good for the buyer. They can go to one place and see multiple listings of annuities or structured settlements for sale. All the information they need to make a bid is there.

How can I be sure a structured settlement buying company is the right one for me?

A good company will have a Better Business Bureau record with satisfied clients. See if there are any complaints about a company on a Google search.

Will all companies give me about the same amount?

No. Some companies will give a very low quote to maximize their profit. Always get quotes from several places and don’t disclose the quotes from other companies. In this way, it will be clear which company is trying to help you and which one is looking out for itself. The more companies that know you are selling a structured settlement, the better price you will get.

How do I know what the price should be?

There are calculators available that can get you an estimate of the value of your structured settlement or annuity. Quotemeaprice.com can help you with this or you can contact your lawyer, accountant or tax person.

How long will it take to get my money?

A good company will guarantee a closing date. If they mention an interest drag to delay the closing, find another company. Expect closing in 8 to 12 weeks.

What if it takes longer than 8 to 12 weeks?

In the closing guarantee you should add that any delays will award the per diem amount be paid to you at the time of closing. If they agree it will prove that the company is not delaying your case to make a profit.

Is there any government protection for the seller?

Most states have the Model State Structured Settlement Protection Act or something similar. This Act requires a full disclosure of all the terms of the sale. This includes the discount rate, number of payments and any charges for breach of the agreement. You should insist that the buyer complies with the Act. In some cases it may be required to have independent financial or legal advice. Quotemeaprice.com can also help you with this.

Annuities / Sellers / Structured Settlements / Tips — No Comments
20
Aug 10

Getting the Best Price for your Annuity or Structured Settlement

Life often takes unexpected turns. Financial crises happen to most people and cash flow problems can snowball to a financial catastrophe. For example, if you’re behind on mortgage payments, it could mean losing your home. If you lose your home, you would still be required to pay rent at another residence.

If you have a structured settlement or other type of annuity, should you sell it? It depends on a number of factors, including other assets or sources of income, the risk you stand to lose if a financial crisis is not averted, and what you stand to gain if sold.

Fortunately, if you decide to sell your annuity, there is help available. There are some useful tips on selling your annuity.

Finding a marketplace to sell your annuity

As with any other commodity, you need to find a marketplace for your annuity. Unlike selling a car, you probably will not find many buyers through Ebay, your local newspaper or Craigslist. Most financial companies interested in purchasing it won’t be looking at those sources.

There are companies that advertise to purchase your annuity, and some may offer you a decent price. But in those cases, you are often given a take it or leave it offer. The more companies that know you are selling an annuity the better, and the more offers you receive, the higher price you will be offered.

QuoteMeAPrice.com provides a marketplace for your annuity or structured settlement. It brings ready, willing and able buyers together with those who need to sell, and are ready to offer cash for either a full settlement or partial settlement. QuotemeaPrice.com does the legwork of finding these buyers for you.

Knowing the worth of your annuity

If you decided to sell your car, you wouldn’t attempt to put a price on it without obtaining a blue book value. Though the selling price of the car may or may not be equal to the blue book value, you at least obtain an informed price as to the marketplace. Understanding what your annuity is potentially worth will allow you to make an informed decision on whether to sell, and if so, the offer you are willing to accept.

With an annuity, the price you receive is not simply a matter of adding up all remaining payments. This is because the remaining payments will be paid out over a number of years. Companies willing to purchase annuities will apply a discount factor against the price of the annuity, taking into consideration the interest they would be earning if their money was invested elsewhere.

There are annuity calculators available for getting an estimate of the present value of your annuity. If you need assistance in determining the value, consider contacting your attorney, accountant, or tax preparer. Or better yet, contact Quotemeaprice.com to get an idea of the present value of your annuity.

Require full disclosure of the sale terms from any buyer

Most states have enacted the Model State Structured Settlement Protection Act in one form or another. First and foremost, the Structured Settlement Protection Act requires full disclosure of all terms of the proposed sale, including the number of payments, the discount rate used by the company and any charges applied for breach of the agreement.

In some cases, independent legal or financial advice is required. Insist that any buyer comply with the Structured Settlement Protection Act

Selling your annuity or structured settlement may be able to protect other assets of yours and may be able to stop a financial crisis before it begins. Knowing your rights as a seller and obtaining the most bidders available through Quotemeaprice.com are invaluable tools to insure the best price in the marketplace is obtained..

Annuities / Marketplace / Sellers / Structured Settlements / Tips — No Comments
7
Aug 10

A Marketplace is the Best Place to go for Liquidating Structured Settlements

Structured Settlements are meant to be residual payments paid out over a period of time. Some people count on receiving those payments on a guaranteed scheduled time frame. However, when the actions of life happen, as they often do, it can be an asset to cash out these payments into one lump sum. There are a number of ways to do this. One of the best ways is by utilizing a marketplace.

What is a marketplace
A marketplace is much like it sounds. It is a place that will market your request for cashing out, or liquidating, your structured settlement. Instead of receiving several payments, a person will receive final one lump sum. The marketplace enables people to list their request and have it viewed by multiple companies.

Let the bidding begin
A marketplace is like ebay on steroids. A request for cashing out a structured settlement is placed. The listing is then viewed by several structured settlement factoring companies and investors. The companies then enter into a feeding frenzy of bids for that settlement. The winning company’s bid is the one the person will end up with. The winning company will then complete the process by taking the transaction through the court system and providing the final lump sum payment to the tort victim.

What settlements can a marketplace list
There are certain payment streams that can be listed in the QuoteMeAPrice.com Marketplace. QuoteMeAPrice.com has buyers for structured settlements, annuities, lottery payments, and mortgage notes.

Benefits of marketplace
The marketplace offers a quick way to get cash for your structured settlement, note, lottery payments, or annuity. The recipient doesn’t need to be harassed by several companies, all the bidding is done in one place. This means less stress, the recipient saves money and headaches.

The marketplace is a great option for people seeking to cash out a structured settlement. They offer peace of mind by receiving the most cash for your future payments.

Factoring Education / Marketplace / Structured Settlements — No Comments
3
Aug 10

Buyers will Compete to Purchase your Structured Settlement

If you have a structured settlement to sell, but you just need to find the right structured settlement buyer, then Quote Me A Price can help. Quote Me a Price is a company that was started in response to the pleas of all of the people who have structural settlements but needed the full amount in a lump sum. Essentially Quote Me A Price breaches the gap between buyers and sellers in the structured settlement industry, and gives everybody what they are looking for. By arranging a bidding area where structured settlement buyers can compete with cash offers for your structured settlement, Quote Me a Price is enabling you the financial freedom that you have always dreamed about.

A structured settlement is something like a long term financial plan that you get when you have a settlement owed to you. For instance, if you are in a car accident and your insurance (or the guilty party) pays out a huge sum of money to you, it is very likely that the money you are owed will not be paid out all at once and will instead be entered into a structured settlement program whereby small amounts of that total are released each month to you. This means that you have a continuous source of income until such time that the total amount is paid out. A Structured Settlement Buyer will actually offer you a cash sum in exchange for that settlement income.

Do not accept an offer from a single Structured Settlement Buyer without considering all of your options, and without knowing what else is available. Quote Me A Price provides a platform which buyers can use to compete against each other in order to provide you with the highest cash offer for your structured settlement. With all of the highest rated structured settlement buyers competing for your settlement, which ensures that you get the best deal out of your transaction, and you walk away with the highest cash amount that you can get for your structured settlement.

Using the Quote Me A Price service is really easy, and allows you access to the biggest names in structured settlement buying. Simply fill in the online form on the QMAP website, and provide such information like details regarding your cash flow. This request will then be sent to each Structured Settlement Buyer registered with QMAP, and they will then start making you quotes. If you have already had quotes from other companies or buyers, you can add this into the comment section on the request form and those buyers will not be contacted.

Whether you need money to pay off tuition, put a deposit down on a home or a car, or for any other reason, why not sell your structured settlement? Approach many buyers with the help of Quote Me A Price and choose the Structured Settlement Buyer that offers you the highest cash lump sum in exchange for your structured settlement. Now you can use your money effectively to get what you really need right now, instead of waiting ages for it to accumulate.

Factoring Education / Marketplace / Sellers / Structured Settlements — No Comments
3
Aug 10

Sell Structured Settlement and Get a Lump Sum

Some serious considerations before making any decision to sell your structured settlement benefits should be considered. Every recipient ought to know that his or her money should make even more money. It is important to think of money as an asset, much the same way that a house or a piece of jewelry when sold could make a substantial profit. To get the very best return it would be a necessity to find the right buyer in order to sell. Structured settlement deals require just as much negotiations as any other valuable asset. The right buyer is the one who would be willing to pay the highest price for a particular asset.

In this case, of course, the asset would be to Sell Structured Settlement benefits that have been received. The actual reason for becoming a recipient is not of importance. However, the calculated total amount of the benefits would be of great significance to a buyer. A recipient of a compensation payout has every right to want to sell. Structure settlement imbursements are a logical means of adding to your asset. The recipient should have the confidence to know that he or she has a profitable advantage.

It could be that due to a court case hearing your compensation for damages inflicted by another party had been prearranged as regular payments. Many recipients would actually prefer to have all the money due to them at one time. This would be especially so if they had the intention to sell. Structured settlement lump sums are sought after by a variety of large and smaller investors. The first step towards finding a suitable buyer would be to get an actual figure for the lump sum. It would be advisable to approach as many buyers as possible in order to Sell Structured Settlement payouts.

Perhaps as the recipient of a settlement, you could be under the impression that in order to Sell Structured Settlement benefits many complications would be involved. Thankfully, this would not be the case if you made use of the services of a referral network called Quote Me A Price.com (www.quotemeaprice.com). This network only deals with the top placed settlement funding firms, qualified investors and factoring organizations. You could offer the full amount of your lump sum to sell. Structured settlement amounts do not have to be sold in full. To Sell Structured Settlement benefits it would be quite acceptable to place only part of the sum on the market.

Due to the use of Quote Me A Price.com you would receive a variety of quotes from interested buyers. The procedure for you to begin to Sell Structured Settlement benefits is available online. Only after receiving as many quotes as you deem appropriate should a decision be made regarding which quote to accept. To make it possible for you to make an informed choice Quote Me A Price.com would present you with all the quotes received. The highest quotes are an indication of the level of interest the buyers would have when you decide to sell. Structured settlement compensation could be extremely valuable for the seller when top investors compete for the sale.

Sellers / Structured Settlements — No Comments
3
Aug 10

Sell Structured Settlement Payments for Cash

Things happen all the time that require large sums of money – buying a home, buying a car, paying for tuition, medical bills and more. If you need a large lump sum of cash now, why not Sell Structured Settlement payments? Structured settlements are a result of a large sum of money being rewarded for any reason. The most likely reasons include winning the lottery, insurance money, money awarded by a third party to cover accident damage, or money awarded to a person who experienced negligent medical treatment. Usually it is a very large sum of money awarded in these cases, and to make it easier, the money is structured into monthly installments.

When you decide to Sell Structured Settlement payments you are, in effect, just exchanging the monthly installments for the larger lump sum of cash. The amount that you exchange it for is usually different, allowing you to offer a buyer a win-win situation whereby you get the cash, and they get a slightly bigger amount at the end of the stipulated period. This period can stretch over tens of years, depending on how big it is, and so this works out to be quite a good deal for you if you need all of the money right now for whatever reason.

Quote Me A Price is an online platform that brings you, the seller, closer to many buyers who are interested in your structured settlement. You essentially are auctioning off your structured settlement payments to the highest bidder who offers the largest cash lump sum – so you will be getting the very best deal when you Sell Structured Settlement payments. Don’t settle on the first offer that you receive – shop around, compare offers and see what is available before you settle on any one offer from a single settlement buyer.

All you need to do to take advantage of this platform offered by Quote Me A Price is fill out the request form on the Quote Me A Price website, and then submit it. This request form includes the details of your cash flow, your name, and other personal details. Once completed, you can either opt to send you request directly to those Top Funding firms who will then make you a cash offer, or request free consultation before sending it to firms. So you will always end out on top when you decide to Sell Structured Settlement payments.

If you have already got quotes from funding institutions who are interested in buying your structured settlement payments then you can still take advantage of the Quote Me A Price request form: simply indicate in the comments section that you have already had quotes from such and such, and then your form will not be sent to those firms. The more quotes you have, the higher the cash amount that you get out will be. Use Quote Me A Price to Sell Structured Settlement payments and get the very best deal out of your monthly structured settlement installments.

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