Have you got yourself into debt? Perhaps you’ve attempted DIY debt consolidation in an attempt to get yourself a structured payment plan.
But what about if this now doesn’t work for you? Can you get out of it?
One question to ask is, “Can I sell my structured settlement payment?” The good news is the answer is yes.
But how should you go about it? And is selling structured settlement payments lucrative? The truth is it can be if you manage the process correctly.
Here’s everything you need to know about selling structured settlement payments.
Structured Resolution Loans
These transactions are sometimes referred to as “structured resolution loans.” But the wording is actually wrong, as there is no such thing as a structured resolution loan.
Current law prohibits using structured settlements as collateral for loans. However, selling some or all of your future structured accounts may be the best way to get out of them. The financial services industry is a complicated industry in 2021, but understanding all the options available to you when it comes to selling loans is crucial.
Note that the total amount of payments you would receive at any time is the same as the amount you would receive from the company that acquired the rights to your payment.
These companies are also there to make profits. But they have to pay administrative and legal costs, as well as taxes, fees, and other costs.
How Much Money Are You Willing to Sacrifice?
Consider how much money you are willing to sacrifice. You should also factor in the amount of interest on the lump sum you will get from the buyer and the company.
If you get $2,000 a month under a structured agreement, you can sell your payment for $1,000 to $1,600. The interest rate on a lump sum payment you receive from a buyer or company is typically 60 to 80 percent and can be as high as 50 percent of your total future payments.
Most people don’t sell their entire structured housing estate. You could decide to sell six months of payments so you have regular income from your structured account for that period.
If you can sell half of your payments each year, you might want to keep the regular payments you receive every six weeks instead of receiving a regular payment for each of those months. Sell off some of the payments instead and reinvest the rest into your home or other assets.
Managing Payments Carefully
If you sell too little, you have to start the process over and go to the judge a second time to get the extra funds. If that happens, he may doubt your ability to manage your finances and be less willing to agree to the second transaction.
The legal requirements for the sale of a structured settlement may delay the receipt of the money from the buyer, which may affect the final offer. Make sure you sell enough to cover the debt you need, but not so much that you start over.
After you have submitted your offer, contact the company that made the purchase. This is known as the “factoring company,” and you will know how much you will pay for the payment.
It is often a good idea to get more than one offer from different purchasing companies to ensure that you have chosen the right factoring company for you. Make sure your offer includes all the fees and commissions that the company charges.
It’s best to close the deal with your eyes wide open. It is also a good idea to look at the Better Business Bureau ratings for each company.
Armed with this knowledge, you may want to reconsider step one. But if you contact the company and get another quote, you will have a better idea of how much money you can get for your payment.
If You’re Unsure, Hire Someone
If you are unsure, ask someone you trust to help you weigh up your options, and don’t be afraid to ask more questions. Read the fine print and know the terms and conditions before signing. Make sure you have answered all your questions and are comfortable with the company you choose.
Be sure to look here at Right Way Funding for a great deal on selling your structured settlement payments or just for some advice.
Once you’ve done your homework, decide which company works best for you. If you need the money immediately don’t forget to ask for an advance. It can take up to three months to get a lump sum, but you can keep it until the process is complete.
Get the full payment as stated in your agreement with the factoring company, and this step is required by law. If the judge decides to approve the sale, he will consider your welfare and the support of your loved ones. If the court approves the transaction, send a copy of the order to the administrator of the structured resolution.
Wondering ‘How to Sell My Structured Settlement Payment?’
If you are considering how to sell my structured settlement payment, then remember you need to do some research. Don’t just go for the first company you find. Look at their reputation and be sure to reach out to previous clients of theirs.
Also, be sure to actually understand how structured settlement payment companies actually work. If you understand them, you are better able to get what you need from them. You will also no doubt come away with a better deal. If you are interested in learning more about questions such as how to sell my structured settlement payment, be sure to check out the rest of our site.