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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.

Tips — No Comments
3
Aug 10

Getting Cash for your Structured Settlement Payments

Structured settlement laws in the United States have made the business of receiving a payment from a court settlement or a lottery win very difficult. It is almost impossible to receive the full amount in cash when it is awarded, and most parties who have to pay a settlement will much rather opt for a monthly or quarterly payment to ease the financial burden. But where does this leave you? You are entitled to your cash, but by law the party responsible for paying it doesn’t have to release it at more than a trickle. But, did you know that you can get Cash For Structured Settlement payment agreements by selling them?

That’s right, you can get Cash For Structured Settlement payment agreements by selling them off to larger investors or institutions who will buy them at a slight discount in return for giving you all of the cash up front. There are a lot of companies who will offer to buy your structured settlement agreement, but the percentage of your lump sum they will charge will differ greatly. A general guideline is that companies can charge between 7-12% to take your payments off your hands and give you the cash instead. With interest on the payments calculated you get almost the entire remaining amount, even after the company takes its discount!

Unfortunately, finding a company who will give you Cash For Structured Settlement payment plans is not as easy as it sounds. Many of the larger companies can offer you more cash, but they also have higher overheads, which stops them from being able to offer you as much as they could. Smaller companies may also offer you a large amount of cash because they do not have these overheads, but they might also be trying to grow and will charge you more for their services.

So what do you do if you want to get Cash For Structured Settlement payment agreements right now? At QuoteMeAPrice.com you can put up your payment agreement on our board, and let hundreds of investing companies make a bid. Then you select the bidder who offers you the best deal! Now you can find the company who will offer you the largest lump sum, without having to call up dozens of different investment firms! This is by far the best way to sell your structured settlement and get the highest amount of money possible for it.

Why go in search of a company who will offer you a decent amount of cash when you can post your structured settlement and let them come to you! You can get all of your cash right now to put into your home, grow your business or take a dream vacation! Don’t settle for tiny monthly payments that make no real impact on your financial situation. Come to QuoteMeAPrice.com and get Cash For Structured Settlement payment agreements today!

Structured Settlements — No Comments
3
Aug 10

Buyer of Structured Settlement Payments

An investor is aware that as a buyer of structured settlement payments an opportunity exists for a lucrative deal to be made. The chain of sale that is brought about when a buyer makes a purchase would prove favorable for all concerned. As all parties would have the same objective to increase return on their asset a structured settlement payments could count on the seller’s willingness to make a sale. Many recipients of structured settlement benefits are eager to sell as soon as possible. A swift sale would of course also be beneficial to a Buyer Of Structured Settlement payments.

It is understandable that a seller would have some concerns about selling his or her compensation. A major worry for a seller would be whether or not a Buyer Of Structured Settlement payments had the financial stability that would be required in order to make a cash settlement. Lengthy negotiations to smooth out each concern that a seller may have would normally take up a lot of time. However, a procedure that has been developed takes care of all the relevant questions and answers. This procedure has come about because of the need for a seller and a Buyer Of Structured Settlement payments to simplify the process in order to satisfy all of the parties.

It is for these reasons that the referral network of Quote Me A Price.com exists. This online referral system that is for the benefit of a seller and a Buyer Of Structured Settlement payments operates according to accurate information that is provided by both parties. Quote Me A Price.com retains and expands a comprehensive database on structured settlement investments. This service contains the data of each potential transaction and each Buyer Of Structured Settlement payments. All buyers would be notified of requests to sell so that a Buyer Of Structured Settlement payments may place a quote for a particular sale. Naturally, the buyer would have to be entered into the database of Quote Me A Price.com.

A seller would indicate that he or she would want to sell a structured benefit for a cash settlement. This information would be sent out to all of the various buyers. An interested Buyer Of Structured Settlement payments would place a quote. When the seller is satisfied that as many quotes have been received as is possible a decision regarding a buyer is made. The Quote Me A Price database consists of many a Buyer Of Structured Settlement payments that have been highly rated. The procedure for a Buyer Of Structured Settlement payments to find a willing seller is as easy as that.

The website of Quote Me A Price.com is www.quotemeaprice.com where online facilities are provided for their database. A Buyer Of Structured Settlement payments is welcome to take advantage of this process of buying and selling. As a serious and experienced Buyer Of Structured Settlement payments, you would have a continual source of prepared sellers. This type of system ensures that all the parties have to do is concentrate on getting the best deal. Quote Me A Price.com brings the best deals to your immediate attention.

News / Structured Settlements — No Comments
3
Aug 10

How to Get the Best Price for your Annuity

If you are receiving cash payments as a settlement that resulted from a court decision in your favor, you might be getting frustrated with not being able to access all of the money owed to you. Did you know that an Annuity Buyer can purchase your cash payments from you and give you a large lump sum of cash right up front for them! This is a great way to get all of the cash owed to you all at once, and it doesn’t violate structured settlement laws. Now you can have a lump sum of cash to do whatever you want with, with no hassles or questions asked!

Unfortunately, finding an Annuity Buyer is not as easy as it sounds. If you would prefer your payments as one lump sum, then you can bet other people would too! Fortunately there are many companies, investment firms and affluent individuals who would be happy to take your payments off your hands at a small discount off the total amount. Before you decide that this sounds like a bad idea, remember that the amount owed to you is accruing interest. When this interest is subtracted you get roughly the same amount that an Annuity Buyer will offer you.

The benefit of selling your settlement payments to an Annuity Buyer is that you can invest the lump sum yourself and earn much higher interest than you would have been earning if it were paid to you monthly. Either that or you can splurge on a new car or a dream holiday that you always wanted, without feeling guilty about digging in to your savings! Whether you choose to invest this money or spend it, you should be able to have instant access to all fund that are owed to you.

There are some annuity buyers who will offer you better prices for your structured settlement than others. An Annuity Buyer will typically offer you between 7%-12%, depending on many different factors. Finding a company who offers you a competitive deal is not always easy, and that’s why we bring you QuoteMeAPrice.com! On our site you can post your structured settlement and have dozens of leading annuity buyers compete to purchase it! You can get quotes from as many different companies as you like, and get cash back for your structured settlement right away!

So if you are looking for an Annuity Buyer who will give you the best cash price for your structured settlement, you can find them on QuoteMeAPrice.com. Here you can see exactly who is giving you a good deal, and who is trying to rip you off! If you already have quotes, you can simple fill those in and we will not submit quotes from that company. QuoteMeAPrice.com is the easiest way to sell your structured settlement and get the lump sum of cash that is owed to you.

Annuities / Structured Settlements — 2 Comments
3
Aug 10

Annuity Buyers Compete

Money makes the world go around, right? Well, you need to be sure your world is spinning in the right direction and that when you make financial decisions, you are working with people that have your best interest in mind. Sometimes the sheer enormity of information out there can be baffling to the most level-headed individual. And sometimes finding the right information to get the best deal is as difficult as breaking into the pentagon. That’s where you need to trust someone else with your research, someone like the annuity buyers; Quote me a Price. With Quote Me A Price, you will receive multiple competitive cash quotes from high rated firms on your annuity or structured settlements.

If you are the type of person who is thinking ahead, you may have been put a large some of money into an annuity years ago and now you want something back from your diligent saving and foresight. Obviously you want to shop around for the best offer, but perhaps you are not sure where to find annuity buyers that will offer you the most money for your investment. Without knowing any better you may settle for much less than your annuity is worth.

Quote Me A Price gives a platform for you to receive quotes from the highest rated annuity buyers while they compete to give you the best cash deal for all or part of your annuity payments. This means that you don’t have to do the research yourself, and you can get up to four cash quotes from one source, making the whole process easier and more user-friendly for you.

Your annuity is your insurance policy. It was more than likely taken out to make sure you are safe from sudden changes in your financial status. It’s designed to keep you in the red. If you are looking to sell your annuity pay-outs in order to receive a lump sum for a special occasion, an overseas trip, or a down payment or your dream house, its important that you are not loosing out on your original investment. Annuity buyers will obviously want to bid for your annuity at a competitive rate to increase their bottom line, by letting them compete against each other for your annuity you up the stakes, and will inevitably increase your earnings.

Your annuity buyers may be a large company looking to buying your annuity in order to sell it off to an even larger firm at a later date. Or you may find a small company with lower overheads looking for investment opportunities. They will have different reasons for offering you a higher cash settlement for your annuity. You have a responsibility to yourself to make sure that you know all the options. You have the right to get the best offer from your investment. The buyers should know that you are a serious seller, and should therefore take you seriously. Quote Me A Price will take your business seriously.

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