Sell your Structured Settlement Payout today

Many companies promise fast cash if you sell them your structured settlement payout today. Beware of these promises. Selling a structured settlement is not as quick and easy as prospective buyers make it look. Nor is the lump sum you will receive from such a sale as staggering an amount as they might promise you.  

There are a couple of things to remember when considering whether or not to sell your structured settlement payout today.

When to sell?

1.    “Fast cash” doesn’t really mean fast. In reality, you will have to wait for at least three months to as long as three months before receiving your lump sum payment for the sale of your structured settlement payout. This is mainly because 38 states require court approval for the sale of a structured settlement, ostensibly to protect the recipient from fraud, ill-judged financial need, or selling under duress.

 Oh, and the three- to six-month waiting period starts ticking when you finally     settle on a buyer. That doesn’t include the time you spend looking for a     knowledgeable and experienced broker (a must!) and the time you consume     shopping around for the best offer for your structured settlement payout.

2.    “Big bucks” doesn’t really mean big. Remember, the companies who want to buy your structured settlement payout are in it for the profit. They’re not charitable institutions who want to take your problems (if you see structured settlements as such) off your hands simply out of the goodness of their hearts. As such, the offers you receive for your settlement payout might seem very low. And naturally, you’ll be getting a much lower amount for your settlement than what the payments would add up to over time.

Thus, the importance of approaching more than one company and looking at more  than one offer can’t be emphasized enough. Safeguard yourself from fly-by-night     institutions that only want to take advantage of your need for a lump sum.   Remember: if something is too good to be true, it probably is.

3.    There are hidden costs. Don’t even consider selling your structured settlement payout without involving an attorney, most likely the one that negotiated for your structured settlement in the first place. An attorney will be able to advise you of the potential risks of such a transaction, as well as help you decipher the fine print in the contracts that prospective buyers will send your way. Of course, an attorney will charge for his services.
   
Then there is the structured settlement broker, a specialized professional without   whom a structured settlement sale cannot take place. Whether hired by your own attorney or fielded by your prospective buyer, the broker also charges a fee (usually a commission, percentage of the total sale amount) for handling the  transaction.

 In many cases, you will also have to pay your buyer for releasing your lump sum.   Remember, they’re not doing this transaction as a favor to you. Their interest in buying your structured settlement is still very much as a vehicle for profit.

4.    There are alternatives to selling your structured settlement payout. If you do need a lump sum or large amount of cash, you may opt to sell just a portion of your entire structured settlement payout. This ensures that you retain your monthly payments for the remaining duration of the settlement, and will likewise give you a lump sum (albeit a smaller one). In cases where individuals sell only a portion of their entire settlement, the lump sum they got was enough to finance expenses such as a new car, house repairs or sometimes even a good holiday..

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