A walk down the road to sell a structured settlement payment
When you decide to sell a structured settlement payment you are making a major decision. Anytime you embark on such a major undertaking you should understand the steps in the process, including your own responsibilities and what goes on “behind the scenes.” Here is a general, high level list of what will likely go on if you pursue your own structured settlement sale:
- You will gather your paperwork and prepare a few questions for the structured settlement buyout companies. Then, you will submit an online quote or email to say that you want a quote and someone will call you back. Or, you will just call directly and be routed to a customer service specialist.
- You will tell your story, saying that you want to sell payments and would like to know how much you can get for them.
- The structured settlement buyout companies you are talking to will ask you a variety of questions, such as why you want to sell and how much is left in your structure.
- You and the company representative will talk, discussing your options for how many payments you can sell, what they might be worth, and whether that meets your needs. A caring company will also ask you how you will get along without those payments and whether you have considered other methods of getting the money that you need.
- You will probably receive a quote verbally, and be asked to commit (agree to the quote) verbally. Then, actual documentation will be mailed to you for you to sign. Note that this is the point when you should pause, thank them for their time, but say that you require at least three quotes. Let them know that after you have three quotes and considered all offers you may call them back, if you choose them or have more questions. Expect some salesmanship here, as they push you to choose now. But be firm – never commit without at least three quotes.
- Once you choose which firm to sell a structured settlement payment to you will notify them verbally that you would like to proceed with the sale.
- The company will send you documents to sign, either via postal mail or email – ask them which method they will use or tell them your preference. Be sure that you understand what you must sign, if you can fax or email, or if anything must be notarized.
- You will read the documents, ensure that you understand the structured settlements discount rate and all terms of sale, sign the documents and return them.
- The documents will be processed by the company and their attorney. This attorney will then file for judicial approval or request a court hearing.
- If necessary, the pre-sale structured settlement hearing will commence and you may be asked to appear in court.
- Someone from the company should contact you to prepare you for court and provide details of what you can expect. Then, you will attend the structured settlement hearing, answering questions from the judge.
- If the judge approves you to sell a structured settlement payment he or she will sign the court order.
- The purchaser will send a copy of the sale order to the insurance company that holds the annuity, requesting that the payments be transferred to them. The purchaser should pay any transfer fees.
- After the insurance company acknowledges the transfer the purchasing company should send you a check or deposit the money into your bank account.
At Strategic Capital we work with you to push your sale through and get your money fast.
Ask questions about the process!
It is important that you understand the structured settlement process and anything specific to the company that you are working with. If you don’t understand something, or are not sure what is required of you, be sure to ask. As they say in grade school, the only stupid question is the one that goes unasked.