There are numerous reasons why people choose to sell structured
settlements. While it is not usually a good move because of the discount
involved in selling structured settlements, there are circumstances
where a person might need the lump sum of cash for the structured
settlement.
A structured settlement is an arrangement where the beneficiary receives regular payments over an agreed number of years. The most common reasons for the creation of structured settlements are inheritances, lottery winnings, and legal settlements. It benefits both parties because the payee is able to meet their financial obligation while staying afloat financially, and the beneficiary is guaranteed to receive the money they are entitled to.
However, cases arise when the payments are not enough to cover some financial obligation of the receiver. Financial emergencies such as those resulting from a divorce, to meet mortgage needs, medical bills, or for debt repayment are all valid reasons for selling assets including a structured settlement.
There are many complexities to buying and selling structured settlements which is why there are a lot of legal restrictions to help protect the individual from being ripped off by financial companies. A sale will require court or legal approval and as a general guideline, expect a two month turnaround time before the transaction is complete.
It is normal for the buyer to make a profit off the transaction so don't expect to receive the full amount when selling structured settlements. As the seller, you have the right to shop around for the best deal and most regulations require that the seller seek consultation of an independent third party such as an accountant or attorney familiar with such matters.
A structured settlement is an arrangement where the beneficiary receives regular payments over an agreed number of years. The most common reasons for the creation of structured settlements are inheritances, lottery winnings, and legal settlements. It benefits both parties because the payee is able to meet their financial obligation while staying afloat financially, and the beneficiary is guaranteed to receive the money they are entitled to.
However, cases arise when the payments are not enough to cover some financial obligation of the receiver. Financial emergencies such as those resulting from a divorce, to meet mortgage needs, medical bills, or for debt repayment are all valid reasons for selling assets including a structured settlement.
There are many complexities to buying and selling structured settlements which is why there are a lot of legal restrictions to help protect the individual from being ripped off by financial companies. A sale will require court or legal approval and as a general guideline, expect a two month turnaround time before the transaction is complete.
It is normal for the buyer to make a profit off the transaction so don't expect to receive the full amount when selling structured settlements. As the seller, you have the right to shop around for the best deal and most regulations require that the seller seek consultation of an independent third party such as an accountant or attorney familiar with such matters.
Usually there is no benefit for people to sell structured
settlement payment
[http://hubpages.com/hub/Selling-Structured-Settlement-Payment/] if
there is no pressing demand for the money right away. There is a great
deal of paperwork and the discount of the sale means it is only for
people who have exhausted other means to obtain the money and therefore
need to sell to get cash for structured settlement
[http://hubpages.com/hub/How-to-Get-Cash-For-Structured-Settlement/].
