By deciding to give up annuity payments from your structured settlement, you’re giving up your rights to all future payments.
However, sometimes life happens and you decide that selling a structured settlement is the right course of action. That doesn’t mean that it would be smart to sell your structured settlement payment to the first person who comes asking for one. You’ll want to take your time and learn the following points.
Keep on reading for our key tips and information you need to know before selling a structured settlement.
You’ll Be Giving up the Stability of Structured Settlement Payments
One of the great benefits of having structured settlement payments is the no-risk continuous income stream that will be coming in like clockwork.
So, when you decide to sell your structured settlement payments, you’ll want to ensure that it’s worth it and you’ll be using that money for the right reasons.
Selling a Structured Settlement 101: Sell Parts of Your Payments
You don’t have to sell all of your structured settlement payments. You can only sell the specific number of payments that you need, and nothing else.
By taking a look at the remainder of your payments, you can sell the specific payments that will give you enough money to meet your immediate financial obligations. After all, you can always sell more payments in the future if you need them.
You’ll Want to Avoid Buyer Servicing
In the simplest of terms, buyer servicing is the process where the buyer would purchase a portion of your payments, then offer to “service” your remaining payments. Basically, they get to take control over the rest of your payment, and they’ll be sending your share to your accounts.
Unfortunately, that type of deal can be a bit risky. If the buyer’s business went out of business, then they won’t be able to send you the remainder of your settlement payments.
You’ll Want to Take Your Time and Shop Around
We understand that when you’re in a financial crisis, you need to get funds almost immediately. However, this might cause you to take the first offer that gets your way, even if it’s less than your payments are actually worth.
Take your time to do some research and get multiple quotes from different reputable settlement firms. Once you have a couple on hand, you’ll want to take a deep breath and review the offers in detail.
At this point, you can do a final research check on your preferred offer, just to get a solid look at the company’s reputation and financial strength.
Ready to Get Some Much-Needed Funds?
We understand that selling a structured settlement is a tough decision, and most people would make it only in times when it would make more financial sense to get immediate funds rather than wait for the annuity payments.
Hopefully, our little guide on the key elements you’ll want to keep in mind when selling a structured settlement has shed some light on the process.
Just remember to take your time, and do your research into the settlement company before signing your settlement away for good.