This question was asked to Settlement Quotes from an individual interested in selling the rights to their structured settlement payments. There are several factors that go into the time it takes to complete a structured settlement factoring transaction, including the state the annuitant resides in, the insurance company, and the factoring company completing the transaction. In most cases the transaction should be completed in 6- 8 weeks.
State- Structured settlement factoring transactions require the structured settlement buyer to obtain court approval within the state the annuitant resides in. Obtaining a court approval for the factoring transaction requires that the funding company first acquire a court hearing. This process can be lengthy and usually causes the most delays.
Insurance Company- The funding company that is completing the transaction has to obtain the Benefits Letter from the insurance company in order to make sure the annuitant still has rights to the said payment stream. Depending upon the insurance company, this process can also delay the underwriting process.
Factoring Company- Some companies will purposely delay completion of a transaction in order to make a profit in a competitive deal. This unscrupulous process is called interest drag and was discussed in this blog post by Sovereign Funding Group.
Settlement Quotes, LLC only works with the most respected structured settlement funding sources in the market. Many of our funding sources offer guaranteed closing times, or they will pay compensation for the delayed time. Feel free to fill out the form above or contact us at 1-888-665-1257 and receive your free structured settlement factoring quotes.