Here is a general guide about selling a structured settlement:
1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or lawyer. Remember, you can sell all or just a portion of your future cash payments.
2) Contact your payment provider, usually an insurance company, to determine the amount, number payments remaining , and terms of your structured settlement. It is a good idea to get all contract information from your provider. You will need this information to give to the potential buyer.
*Ask your payment provider if they have worked with structured settlement buyers, they might disclose a few potential buyers to begin your search.
3) Determine what amount you would like to sell. You will receive more money for payments that will be received sooner than payments in the distant future.
4) Search for a buyer of structured settlements. It is very important to feel comfortable with potential a buyer.
There are a number of ways to find a potential buyer:
-talk to your financial advisor or lawyer,
-use www.MyNoteMarket.com to identify potential buyers,
-search the Internet,
-talk to friends and family who have sold a structured settlement.
5) Get multiples quotes for your structured settlement. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.
6) Once you have selected a buyer, you will have to sign a contract with the buyer. This contract should outline the terms and conditions of the structured settlement payment. It is generally called a Disclosure and Transfer Agreement.
*Tip: It is strongly advised that you have your lawyer review this contract before you sign it.
7) Now the information gathering process will begin. The potential buyer will request specific information about your structured settlement. It is recommended that you have as much information collected before you begin this process. This process can last between 2 to 14 days.
Information requests can include:
-Settlement Agreement/Court Judgment/Release
-Annuity policy/contract – from the insurance company or payment provider
-Payment verification – payment check stub or bank statement.
-Your personal information including driver’s license
-Copy of marriage license or divorce decree (if applicable)
-Bankruptcy discharge documents (if applicable)
-Your lawyer’s information
8) Once the buyer has all the required information, they will begin an underwriting process. This process usually lasts between a month to several months, depending on statutory requirements, the company, and complexity of your structured settlement.
*Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.
9) When the underwriting is complete, the buyer will submit the settlement to the court for approval. A judge will review the settlement and determine if it is in the your best interest to sell the settlement. The buyer should cover all costs associated with the approval process. While you are under no obligation to appear in court, you should consult an advisor about your unique situation.
*Tip: Ask the buyer up front about all costs and who is responsible for paying them.
10) If the court grants your settlement request, the buyer will transfer the cash to you.
Congratulations your sold your structured settlement!
*Please note: these are general guidelines, all situations are unique and vary by state and company.
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
John Weimer, CFA
Mr Weimer has almost 20 years of finance and investment experience working with major insurance companies and investment firms. He also co-founded http://www.TheBizMarket.com an on-line business brokerage.
He currently is CEO of PegasusPolo Ventures, LLC
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