Receiving structured payments systematically over a long period of time may work for some people, but what if a sudden unforeseen need for cash arises and the fixed payments are insufficient? Banks do not really consider the still-to-be-collected payments appropriate secured loan collateral. Rest assured there are other options.
It is possible to transfer structured settlement annuity payments in case unexpected expenses come up and a lump sum amount of cash is needed. To be able to get lots of cash fast, one needs to contact an individual who is a representative of a structured settlement buyer. These people buy settlements as investments for amounts less than their real worth, and in return will give the seller a lump sum of cash. The seller needs to decide which suits them more, to get the full amount over a long period of time in small quantities, or to collect the lump sum that is less than what they are entitled to.
Should the recipient of the structured payments decide to sell them for a lump sum, there are a number of methods they can employ. One possibility is to sell all future payments, get one large lump sum, and not hold any rights to any future payments. The second option is to sell a portion of the future payments. The investor collects a specified number of payments, while the seller gets the agreed upon lump sum. After the completion of the specified number of payments, the payments revert to the seller again. The third possibility is to sell part of the payments. Instead of the investor getting all of the payments and the seller getting nothing , both the seller and the investor get partial payments over a longer period of time, until the agreed upon amount of money is returned to the investor. The final option is to sell all or part of the structured payments in return for two or more payments of large amounts. The seller needs to decide which option will be most suitable for their specific need and then search the market for a suitable customer.
Once the details of the sale have been worked out with the buyer, the amount of time needed to complete the transaction and actually receive the lump sum of cash varies. Every state has its own set of laws and procedures on how these types of transactions can be carried out. These rules are there to protect the seller form unscrupulous investors, hence they can’t be carried out without the court’s approval. Many times the legitimate investor, after getting the go ahead from the seller, will go to court on behalf of the seller at their own expense. They will get the structured settlement payments assigned to themselves for the predetermined amount of time. The court order is a compulsory step that is designed to protect both the buyer and the seller. Upon approval from the court, the lump sum is paid to the seller and the operation is completed.
The actual amount of time to complete the court authorized process and all the paperwork is influenced by many factors. Depending on the state in which the transaction is being carried out, and the time taken to complete the documentation, the process can last anything from roughly 45 to 90 days. The settled upon amount can be transferred to the seller by a check or wire transfer, whichever they prefer. Here are some good articles they can help you when selling your structured settlement payments: