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 the five things you need to know before you sell.
How Much Will You Receive When You Sell Structured Settlement 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 savings 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. Annuity pays interest which is used to make the payments to you over time. So, for example, you may have settled for one hundred thousand, however the 100k was structured over a 20 year period. We can agree, that you would have rather had the 100k up front to do with as you see fit, however by putting the 100k over 20 years that insurance company was able to bring their costs down significantly by buying the annuity at a fraction of the 100k. When selling your annuity you are going to receive less than the full amount over time more similar to what the annuity/insurance company put away at the time of settlement. Understanding that annuity was purchased at a much lower amount then the payments add up to over time, it is easier to appreciate the great offer that Mainstreet Funding is committed to offering each person we work with to sell structured settlement payments. Next, it is important to know you have options when you sell your payments.
What Are Your Options When You Sell Structured Settlement 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. We go to great lengths to understand your situation and then build a plan to fit your needs specifically. We want you to get the money you need but also 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. The next thing you should know is that there is a process to sell structured settlement payments.
What is the Process to Sell Structured Settlement Payments?
The process to sell structured settlement payments is based upon rules setup 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 requires that Mainstreet Funding provide you 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. Due to this process it is important to know that you will have to wait a little while get your money.
How Long to Sell Structured Settlement Payments?
Depending on what you need to do with the payments, moving forward with us as quickly as possible will help to make sure you have the money when you need it. The courts tend to be the longest part of the process, so the sooner we can get your case in the courts the better for you and sooner you can receive your money. You should plan on 45 – 60 days from the time you enter into an agreement with us to receive your money. We understand that this can be a difficult time and we will do anything necessary to help make this process as short and as easy as possible including providing advances or some cases we have made phone calls and written letters to creditors to help make sure them that the money is coming. With Mainstreet Funding we are committed to completing your transaction as fast as allowed by courts. The fifth and last thing you need to know before selling your payments is that you will need to provide documentation of your annuity.
What Documents do I Need to Provide to Sell Structured Settlement 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 us 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 documents 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.
Understanding these five things prior to selling your structured settlement payments will help ensure a great experience for you. We at Mainstreet Funding are committed to you to help you get through this process with the most cash in the shortest period of time. To learn more contact one of our representatives at 1-404-939-0029 or request your Quote Here.