What You Should Know when You sell Your Structured Settlements

Determining whether to sell a structured settlement may be one of the most difficult decisions in your life. Unfortunately, you may be thrust into exploring this decision due to a change in your financial situation.

We have all seen major changes in our economy that has left us with financial uncertainty in our ability to cover housing payments, possibly a loss of jobs, increased credit card debt, to unexpected medical bills. These issues may cause a need to sell structured settlement payments. Whatever the reason, below are some things you need to know before you sell.

How much you will receive when you sell structured settlements payments ?

The first and the hardest thing to swallow when getting a quote on your payments is that you are not going to receive what the payments add up to over time. Looking back to the settlement, the annuity payments were offered for many reasons, but we know that by paying the payments over time there was a cost saving for the insurance company. The way this works is that the insurance company representing the defendant will buy an annuity. This annuity is bought for much less than what the annuity adds up to over time. The annuity pays interest which is used to make the payments to you over time.

What are your options when you sell  structured settlements payments ?

The good news is that you do not have to sell all of your annuity. Many times we will buy only a small portion of the annuity to get what is needed now to cover bills, home purchase or any other need. Sell the least amount of your settlement necessary to cover this need. We may find that you can sell a portion of each monthly payment or just sell the lump sums or possibly a combination of both. We will work with you to get the best possible option for you when you sell structured settlement payments.

What is the process to sell structured settlements payments ?

The process to sell structured settlement payments is based upon rules set up in each state, that must be followed, in order for you to get your money early. The process requires a judge to approve the transaction. Additionally, the rules require that Mainstreet Funding provide you with a disclosure statement prior to entering into an agreement. The disclosure statement basically gives you the details of what you decided to sell and what you will receive in exchange for those payments. After the disclosure, you will be able to enter into an agreement which allows us to move onto the next step which is to pursue getting the judge to approve the transaction.

What documents do you need to provide to sell structured settlements payments ?

Much like any financial transaction you need to provide proof of the asset you are selling. In this case, the asset is your annuity payments. There are usually two documents you need to provide to show the annuity. The first is the annuity policy. The annuity policy was provided to you shortly after you settled your case. If you do not have this document, you can request the insurance company making the payments to you to send you what is called a “benefits letter”. The benefits letter is usually a 1-page document that summarized the annuity policy. Make sure that the benefits letter, shows the payments, the policy number, the owner of the policy and the company making the payments. The second document is what is usually referred to as the Settlement and Release Agreement. This is the document that was signed when the case was settled. The settlement and release was the document that basically says that the case was settled and you are to be compensated via an annuity.