If you feel that your current structured settlement annuities are not enough to fulfill your desires, then selling off your structured settlement might give you some handy cash to overcome the financial crunch. There might be many questions in your mind regarding how to sell your structured settlement, which company to rely upon, why would you need to sell off your annuity payments, can you sell a portion of your settlements and many more. We will answer these and many more of your questions in detail.
Why should I sell off my income stream?
There might be many reasons why you would need to sell off your structured settlements. One reason may be that you might be tired of staying in a rented apartment and may be looking to buy a new home. Then, the repairs of your old home might require a lot of money which cannot be availed through regular payments. There might be a wonderful business idea in your mind and the annuities might not be able to give wings to your dreams. Therefore, you might need some lump sum amount or cash to fulfill your desires.
Is selling future payments legal?
Yes, selling your future annuity payments in not only legal as per Integrity Funding Sources but also has been prevalent widely to meet current and future obligations as well as increase the cash flow. The truth is that is it a well kept secret from the general public and in reality there are many funding companies which are buying these kind of settlements and giving you a lump sum as per Bank Rate. So, the major task is to choose such a buyer who will give you the highest amount on your annuities.
But my lawyer didn’t tell me about this. Why is that so?
The only reason why your lawyer or your attorney didn’t tell you about this option is that because probably he is himself not aware of it. Most of the lawyers/ attorneys act in the best interests of their clients but there are not much familiar with alternative finance or secondary markets. They are in the belief that there are not many options and a few of them who are aware of such options often are jumping to offer these to the clients.
How much does it cost and how long does it take?
There are no out of pocket expenses for the clients in selling the income stream. All the upfront expenses including the legal fees are paid directly by the funding source. The process of funding is pretty straight forward and doesn’t take much long. Once the documents are received, it only takes about 6-8 weeks to process and receive the funding. You can either receive the money through check in an overnight courier or directly into your account as per your instruction.
Is it a loan and do I have to pay it back?
No, this is not a loan and you need not pay it back. You are only selling your payments for a lump sum in cash today and therefore, there are no strings attached.
What will happen if the payer defaults?
When the funding source purchases your income stream, they assume all your risk too. It is their headache if the payer defaults or goes bankrupt; you will get your amount no matter what happens to the payer. No one can ever come back to you in such circumstances.
How do I choose the best broker?
The most important question to ask a broker is that how many underwriters he is going to present the deal to. This is very essential because many brokers have great connections with some funders on account of various incentives they give to the brokers. This gives the funders exclusivity they actually need. This essentially means that there will be only buyer for your income stream and hence less competition. This will eventually translate into less money for your annuity payments because when a funder knows that there is no one else bidding on the deal, it will offer as little as possible.
Do I need to worry about certification?
This is a very essential question to ask because when an industry involves a lot of individuals operating to earn profits, some of them might operate in an unethical manner. As it is very difficult to know who you are dealing with, certification becomes an important criterion to judge and rely upon a broker. So, there might be uncertified brokers who might be dealing with only one or two brokers which might eliminate competitive bidding. So, certification becomes more important than other criterion in choosing a broker for your needs.
