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.
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.
