Selling Your Structured Settlement

With high chances of getting trapped by the fake factoring companies out there in the secondary market, searching for a reputable and trustworthy structured settlement buyer can be hectic!

Fairfield Funding is a successful Factoring Company that has served its clients over the past 15 years, helping them get their deserved payments in their hands in the least possible time duration.

If you, too, are the one looking to sell your structured settlement and are unaware of the complications and the whole process involved, here is a brief guide written by our experts that might be handy for you!

Selling Structured Settlements

The process of selling settlement payments, also referred to as a structured settlement secondary market, allows individuals to convert their future settlement payments or other financial instruments into cash.

This can be beneficial for those who need immediate access to funds, such as in the case of an emergency.

The process of selling structured settlements typically involves working with a qualified intermediary, such as a lawyer and a factoring company, who will help facilitate the sale and ensure all legal requirements are met.

Drawbacks of Monthly Payments as Compared to Getting Lump Sum Payouts

Although structured settlement Annuity provides a regular stream of tax-free income for the claimants, there are some risks associated with it as compared to Lump Sum Amounts. Hence, people like you choose to sell their structured settlements,

➥ Risk Of Inflation

One disadvantage of monthly payments compared to a cash lump sum is inflation risk.

When receiving regular payments over time as part of a structured settlement agreement, there is always an element of inflation risk because those monthly payments remain fixed for the duration of the agreement and do not increase with inflation like wages typically do each year.

If prices rise significantly during this period, then those fixed payments become worth less and less each year in terms of purchasing power which can lead to financial hardship down the road when trying to cover basic living expenses such as rent or food costs on top of any medical bills associated with an injury or illness that led to the original claim being filed in court for compensation in the first place.

➥ Liquidity Risk

Structured settlements require claimants to wait until specific dates before receiving their next payment, whereas taking a lump sum allows them to access all their funds immediately upon receipt without having to wait for predetermined dates throughout future years before accessing more money from their award total again.

How Does Selling Structured Settlements Normally Works?

Selling a structured settlement requires obtaining a judge’s approval and enlisting the help of an attorney. Your settlement terms and state laws will determine if you can either sell structured settlement payments.

》Step#1: Decide The Amount You Want

The first step in structured settlement selling is determining how much money you want to receive upfront.

You’ll need to consider factors like your current financial situation and any potential tax implications associated with the sale before making this decision.

• Make a list of current and anticipated expenses that regular income sources cannot cover.
• Estimate the total dollar amount needed to address these expenses.
• Determine if selling only a portion of the future payments would suffice or if more drastic measures are necessary.

》Step#2: Look For Buyers

You may find buyers through online marketplaces or by searching for companies that specialize in buying structured settlement payments. It’s essential to do your research when selecting a buyer so that you can make sure they are reputable and trustworthy.

Make sure they provide transparent information about their fees and terms of service before agreeing on anything else.

Once you’ve found a buyer, they will work with your intermediary (if applicable) to negotiate the details of the transaction, including payment amount(s), due date(s), interest rate(s), etc.

》Step#3: Signing Documents

After both parties agree on these details, paperwork must be completed, which includes signing off on documents related to taxes and insurance coverage if necessary.

Once everything has been finalized, then the buyer pays out according to agreed-upon terms – usually within 30 days after completion of paperwork – allowing sellers access to immediately available funds without having to wait until future payments become due from their original annuity agreement or another instrument.

What is the Discount Rate?

The discount rate is a critical factor in determining the amount of cash you will receive when selling your structured settlement regular payments.

It is used by multiple factoring companies just like us to calculate the present value of your payments and, thus, how much they are willing to pay for them.

The average discount rate typically falls between 9% and 18% but can be higher depending on various factors.

When shopping around for quotes from different companies, it’s essential to consider not only the discount rate but also other fees that may apply, as well as their reputation in the industry.

Companies primarily base their discount rates on expectations of future interest rates, so it pays off to do some research before making a decision.

It’s also worth noting that discounts vary greatly depending on individual circumstances such as payment frequency, remaining term length, age of the claimant, and more. 

➬ Get The Best Discount Rate In Your Interest!

To get an accurate estimate of what you could expect to receive from selling your annuity payments, contact multiple companies for quotes with detailed information about your situation included.

This way, you can compare offers and make sure you’re getting the best deal possible with the lowest possible discount rate applied.

At times it may feel like navigating through a minefield trying to find out which company has the most competitive offer – however, if done right, this process can help maximize returns while minimizing risks associated with any potential transaction down the line.

As they say, “You have to spend money to make money,” – so don’t be afraid to invest time into researching all available options before signing anything!

You Have The Right To Choose Your Sale Options!

When it comes to selling your structured settlement or annuity payments, you have two main options: Full sale and partial sale.

Depending on your financial needs and goals, one option may be more beneficial than the other.

➽ Full Sale

A full structured settlement sale means that you will receive a lump sum payment in exchange for all of your future payments. This structured settlement sale is ideal if you need immediate access to cash or are looking for a way to invest money into something with higher returns.

However, keep in mind that when opting for a full sale, you will not receive any additional payments after the lump sum has been paid out.

➽ Partial Sale

On the other hand, a partial structured settlement sale allows you to retain some of your future payments while also receiving an upfront lump sum payment. This can be helpful if you want to maintain some regular income but still need access to extra funds right away.

Partial sales are often used by people who want to pay off debt quickly or make large purchases without having to wait until their next scheduled payment arrives from their annuity provider.

Just Let Us Know About Your Situation, And We Will Come Up With The Best Possible Solutions!

Pros and Cons of Selling Structured Settlements

The Pros:

• Getting a good lump sum amount from purchasing companies, you can use the payment for whatever purpose you choose.
• You get more control over how much money you have available at any given time since all payments are made upfront rather than spread out over time.
• Additionally, if your financial situation changes suddenly due to an emergency or other unforeseen circumstances, having access to a large amount of cash can help alleviate some of the stress associated with such events.

The Cons:

• For starters, when you sell your annuity payments,, you may end up receiving less money overall than what was initially promised by your insurance company or court order. This is because companies who buy these types of agreements typically offer discounted rates on their purchases to make a profit from them later on down the line.
• Additionally, depending on where you live and what type of agreement was set up initially between yourself and your insurer-court order provider, there may be certain restrictions placed upon how much money can be sold at one time. This can limit how much cash is available right away should an emergency arise requiring immediate attention.
• Lastly, if not done correctly, taxes may apply when cashing out. Hence, it’s important to consult with an accountant beforehand just in case this might affect how much money ends up being received after everything has been taken into consideration (including fees).

Dealing with Unscrupulous Structured Settlement Factoring Companies

The structured settlement secondary market has attracted some unscrupulous structured settlement factoring companies that prey on vulnerable individuals by charging excessive rates and not disclosing all terms and conditions. To protect yourself from such practices:

Seek legal representation: 
Consult an attorney experienced in dealing with structured settlements who can review contracts and advise you on potential pitfalls.

Gather financial counsel: 
Work with a trusted financial advisor or planner who understands your unique situation and long-term goals.

Familiarize yourself with state laws: 
Each state has its own Structured Settlement Protection Acts, which provide guidelines and regulations for selling structured settlement payment rights. Make sure you understand your state’s requirements.

Research factoring companies: 
Investigate the reputation of any potential buyer or factoring company by checking their track record, customer reviews, and accreditation with organizations like the Better Business Bureau.

Negotiate discount rates: 
The discount rate is the percentage that a factoring company will deduct from your lump sum payment in exchange for purchasing your future payments. Shop around to find a fair and competitive rate.

Reasons Why People Choose to Sell Structured Settlements

We understand why you might be selling your monthly payments to a purchasing company like us. Here are some of the common reasons to sell structured settlement payments we got to know from our clients:

These include

• Paying medical bills
• Reducing high-interest debts
• Financing a college education
• Making a down payment on a home
• Purchasing a car
• Starting a business
• Investing for retirement

✅ Paying Medical Bills:

With the rising cost of healthcare in the United States and many people lacking adequate health insurance coverage, selling structured settlements can be an attractive option for those who need to pay large medical bills quickly.

✅ Reducing High-Interest Debts:

Selling structured settlement payments is one way that individuals can get access to lump sums of money which they can then use towards paying off these debts and saving money in the long run by avoiding further accrual of interest charges.

✅ Financing College Education:

The costs associated with attending college are becoming increasingly prohibitive for many families across America today; however, selling structured settlement payments provides students with an alternative source of funding that does not require them to take out student loans or go into debt unnecessarily.

✅ Making A Down Payment On A Home:

Selling your structured settlement payments gives you access to more significant amounts of cash, which you may be able to use toward buying your dream home sooner rather than later!

✅ Purchasing A Car:

Whether you’re looking for something reliable and affordable or want something luxurious like a sports car, having extra funds available makes it easier when it comes time to purchase your vehicle outright instead of relying on financing options through dealerships which usually come with higher interest rates attached.

✅ Starting A Business:

If you have an entrepreneurial spirit but lack capital, then selling your structured settlement could give you just what you need jumpstart your business venture!

Frequently Asked Questions

Is selling a structured settlement a good idea?
Selling a structured settlement can be beneficial if you need immediate cash for emergencies, large expenses, or investments. However, it’s important to weigh the potential loss of long-term financial security against your current needs. Consult with a financial advisor before making any decisions to sell structured settlements.

Can I sell a structured settlement?
Yes, you can sell your entire structured settlement payments to us. The process involves obtaining court approval and finding a reputable buyer who will purchase your future payments at an agreed-upon discounted rate in exchange for lump-sum cash.

How do I sell structured settlements?
You can sell your future structured settlement payments by working with a factoring company. They will help facilitate a structured settlement transfer. Regardless of who you work with, the process should begin with a disclosure statement outlining what you are selling and receiving. Next, you will sign a contract after a state statute determines the waiting period. After the contract, the company will file a petition for court approval in your state, allowing them to set a hearing date. If the judge approves the transfer, you will receive your money.

How much can I sell my structured settlement for?
The amount you receive when selling your structured settlement depends on various factors, such as the total value of remaining payments, payment frequency, and the discount rate applied by the buyer. Typically, expect to receive less than the total value due to time-value-of-money considerations.

How long does it take to sell a structured settlement?
The process of selling a structured settlement typically takes 30-45 days from start to finish. This includes obtaining necessary documentation, getting court approval, and transferring funds after completion of all legal requirements. 

How much money should I expect to receive?
Several factors influence how much money your settlement is worth right now. The financial professionals at Fairfield Funding will work with you to maximize the amount of money you receive responsibly.

Is it possible to sell a portion of my payments?
Definitely!!! That is our preferred course of action with our clients. Fairfield Funding wants to take care of your short-term monetary needs while looking out for your long-term financial goals.

Do I need the insurance company’s permission to sell my structured settlements?
The short answer is NO. This is your decision and yours alone. We will make your insurance company aware of the transaction and work with them to get everything completed effortlessly.

What expenses will I have to pay to sell my structured settlement?
None. Fairfield Funding has no hidden fees. We pay for all costs associated with the transaction.