Probably the second most asked question we hear is, “How long to sell structured settlement payments.” While there are some average time frames, depending on the state that you reside, below we are going to look deeper at the process that must be followed and look at the timing of each of the parts to help you better understand how long it takes to sell structured settlement payments. Once you understand the process you can better plan for the money.
What Determine How Long to Sell Structured Settlement?
Many years ago you were able to receive your money much quicker. Matter of fact some would receive their funds in as little as two weeks, however in 2002 a federal statute was enacted that changed the process and timing of receiving your money early. The structured settlement protection act was put in place in 2002 to provide for a standard for selling structured settlement or annuity payments. The statute also provided for safeguards to ensure that you are protected whenever you sell your payments. With this statute came the process we must follow today, which changed how long to sell structured settlement payments. We now must follow the following five steps, which determines how long to sell structured settlement payments.
2) Waiting Period
3) Transfer Agreement
4) Court Approval
5) Insurance or annuity company acknowledgement
We will walk through each of these and provide some guidance on the timing on how long it takes to sell structured settlement payments.
What happens during the disclosure?
Once you agree to terms on what you are selling and what you are receiving, we will provide you a disclosure statement. The disclosure statement provides you the terms of the transaction. You can view our earlier blog for more details on the disclosure statement. The disclosure is traditionally sent to you for signature. It confirms the agreed upon amounts and provides additional disclosures. This document confirms to you what you agreed upon over the phone so that when you get to the transfer agreement there are no surprises. This can usually be received and returned within a couple days.
How long is the waiting period?
The statute that sets out the rules for selling structured settlement payments determines the waiting period. The waiting period can be as short as 3 days to as long as 10 days. This basically gives you an opportunity to review the disclosure to determine that this is the best option for you. While most people continue on after the disclosure, some have used this time to rework the deal. After the waiting period is over, you will have the opportunity to enter into the transfer agreement.
How long does it take to execute the transfer agreement?
At the end of the waiting period, you can execute what we call a transfer agreement. This is the agreement that sets forth the terms to transfer the payments to Mainstreet Funding. If you would like more details, see our earlier blog which details the different aspects of the transfer agreement. The transfer agreement typically only takes a few days to execute and get back to us. Once we receive the transfer agreement back from you, we can proceed to the court order part of the process.
How long is the court order part of the process?
This is the part of the process that gets a little less exact. The statute requires that you go in front of a judge and the judge determine that the transfer is in your best interest. Once we apply for a hearing then we become subject to the calendar of the court in your area. This part can not be shorter than 21 days, but again is subject to the availability of the court. We always request the earliest possible hearing date, however the date of your hearing is solely determined by the court. Once you get a hearing and go in-front of the judge and the judge approves the transaction then the annuity company needs to acknowledge the court order.
How long for the insurance company to confirm the order?
How long the insurance company takes to acknowledge the order depends on that insurance company. For a lot of the companies, they will agree prior to the order assuming the earlier steps in the process have been followed, however some of the companies require us to send notice of the order to them and then they will reply that they will honor the order.
While there is no designated time-frame for how long to sell structured settlement payments, in over 15 years of buying structured settlement payments, this author sees the majority of the deals take between 45 – 60 days from the time the disclosure is executed. If you would like to discuss the timing of your deal, please call us at 1-877-919-8003 and one of our knowledgeable and friendly structured settlement representatives can walk through your specific situation and help determine the timing for you.