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If you are wondering, “Should I sell my structured settlement payment” to save my house you probably have doubts because you know that your structure serves a purpose. Or maybe life just changed. Maybe you were awarded a structured settlement and having that money coming in each month was a blessing for a few years – you loved it. But now something happened and your circumstances are now such that you feel you would be better served by a lump sum of money. Perhaps you are now disabled to the point that you need a new career and you want to go back to college – selling some payments to pay the tuition might be a great choice. Whatever your situation, if you are reading this it means you need money. And structured settlement buyouts may seem like the perfect solution. But think about it.
It is important to recognize that there are other ways to get money. In fact, some of the more caring factoring companies will even help you. For example, our company, Strategic Capital, once had a disabled woman call wanting money for college; rather than buy her payments we helped her to get a grant to the college she wanted to attend, leaving her settlement intact.
Selling your structured settlement can be a good option for getting the money you need. Just do your research so that you can make an informed decision.
In our online structured settlement guide we talk already about a few scenarios where you might consider selling your settlement, but let’s look at a few more here.
First, decide if you should do it. Can I sell my structured settlement payment to save my home from foreclosure? Probably, yes. But should you? This situation can be difficult, but in some ways the answer seems clear. If you have been receiving structured settlement payments for some time, yet you were still unable to make “ends meet” and pay your mortgage, then you should be careful before you sell payments to rescue your house from foreclosure. Only do this if you will be paying the full amount of the house off and not have a mortgage going forward.
It would be very unfortunate to sink all your settlement money into your house only to lose the home a few years down the road because you couldn’t pay off the remaining balance. However, if you can pay the entire house off, or pay the mortgage down far enough that you can easily afford the payments, then this might be a good course of action for you. One note, in many states you can buy your own house back at the foreclosure auction for a fraction of your mortgage balance; talk to a realtor or real estate lawyer in your area to see if this is an option for you.
Owning a home is the American dream and for many people it is a great way to invest money. Buy before you sell your annuity to buy a home ensure that you crunch the numbers and that you will be able to afford any mortgage balance, taxes, insurance and maintenance on the home; you don’t want to sink all your settlement money into a home only to lose it later because you couldn’t afford these aspects of home ownership. But if you can afford them, then this might be a great reason to consider structured settlement buyouts.
Most people, and judges, would consider it frivolous to sell your payments to repaint your house, install a pool, or build a patio. But if you need a new furnace or air conditioner, or your roof is leaking or your windows are terrible and you can see the heat wafting out, then to sell your annuity might be a good decision. Strategic Capital can help you consider your options and make the best decision for you.