Your Structured Settlement’s Value

Remember that most structured settlements paying out a set amount of monthly or yearly income over time were designed to provide you a maximum rate of return with a minimum amount of risk. This is why there are so many organizations that want you to sell structured settlement payments to them. If you make it obvious to them that you are really desperate for cash, they will offer you a lowball deal. Do not look desperate and take the time to shop around until you get a really good offer.

Selling Structured Settlements vs. Getting a Loan Against Them

A lot of people have discovered that they can get a loan against the value of the structured settlement. You are sure to find a number of local bankers who are willing to work with you. This is often the best option for those who are working or have other cash flows. The interest rate that your structured settlement is paying may only be a little less than the rate you will have to pay against the loan.

If you do not need all the money that you can get from selling structured settlement payments, you can exercise the above mentioned option with your banker and use the bulk of the money to buy income producing real estate or invest it in some other secure financial instrument. Doing so will further reduce the cost of the loan and, in rare situations, can even result in a profit.

By being smart and patient in talking to more than one professional you will be able to plan and execute the best financial moves.

There are a lot of dishonest operators around looking for people to scam. Do not make a hasty decision simply because you have a urgent financial need. Your creditors will wait no matter how much they try to persuade you that you need to pay your bills now.

What price is too low? Which company is reliable? Can I sell just part of my settlement?

These are just some of the many questions that arise when considering selling your structured settlement. Here are six tips to consider before you sell structured settlements.

Things to Consider Before You Sell Structured Settlements

1.    Search for specialty finance companies (such as Woodbridge Structured Funding and JG Wentworth) that are able to purchase your structured settlement. Be sure to research their reputation and testimonials – what clients (past and current) say is invaluable.

2.    Do not accept the first offer to purchase your policy. Why? Browse multiple companies to make sure you’re getting the most value for your settlement.

3.    Evaluate your current financial standings, and then decide whether you need to sell all or part of your structured settlement.

4.    If you can’t understand the legal jargon, consult an attorney. Make sure you understand the documents and any tax ramifications that occur when you sell structured settlements.

5.    Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.

6.    Before you sell structured settlements, be sure that the company you’ve chosen addresses all legal ramifications. As much as possible, go for a company that does the most – if not all – of the work needed to get court approval.

In today’s litigious society, one may easily find themselves in possession of a structured settlement. Structured settlements are long-term payoffs of successful lawsuits. The settlement payout normally lasts many years to prevent the defendant from going bankrupt.

It seems to be the ideal way to mete out justice: the plaintiff gets the greatest possible compensation; the defendant is duly sanctioned without being forced into bankruptcy; and the court’s time and costs are saved by both sides. However, the drawn out payment plan does not appeal to every plaintiff, especially those who need cash for pressing needs such as college tuition and medical emergencies.

Why Lump Sum Settlements Are Rare

Unfortunately for those plaintiffs, since settlement amounts are usually figures of four digits or higher, it is unlikely that courts will make defendants pay a lump sum unless the defendant is quite wealthy.

Cash for Structured Settlement Payments

They can still get lump sum cash for structured settlements though – by selling those future settlement payments.

The safest way to sell structured settlement payments is to find a firm that specializes in buying structured settlement payments. There are so many companies out there and offers will vary from firm to firm. The wise settlement recipient takes his time and shops around till he knows he’s got top dollar. Those who sell structured settlement payments for cash should also seek the services of an attorney and a financial adviser to help navigate the legal and financial jargon that complicate such transactions.

Sell Structured Settlements for Cash: The People & Process

The process of getting cash for structured settlement payments takes 40-60 days to complete. Much of that time is spent establishing a court date to get the necessary court approval. There are four parties that participate in the sale process:

1.    The Seller

2.    Certified Consultants who present financial options to sellers and facilitate the completion of the transaction.

3.    The Attorney who prepares the legal paperwork and arranges the court date. He is also present at the final closing of the sale.

4.    The Judge who reviews the seller’s application to sell structured settlement payments. If the court decides that the sale is in the seller’s best interests, the sale is approved.

Getting cash for structured settlement payments are governed by transfer laws that differ from state to state. It is therefore vital for sellers to work with people who understand these state laws to ensure the seller gets the best value from the transaction.