Selling structured settlements is nothing new, and it is becoming increasingly common, especially since the economy remains complicated. While ongoing payments in a structured settlement offer stability to the beneficiaries, there cannot be an immense need for immediate cash at this time.
For example, loss of employment, delinquent accounts, risk of default on a mortgage and other financial concerns can convince the holders of structured settlements that now is the right time to sell. However, buyers face some risks in the process.
Considerations of the CourtOne of the first risks that buyers of structured settlement will face is the court process. The sale of a structured settlement is not a simple process. Each sale will have to go through the court so that a judge can determine if it is possible or not. The judge can deny the sale of the agreement and it is certainly possible, since the law leaves this at the discretion of the judge.
State Law Answers ComplicationsThe beneficiaries cannot sell a structured settlement for any reason or reason. For example, they cannot sell their payments if they want to go on vacation or to buy a second home, remodel their homes or put their children in college. Most states have laws that indicate that it is necessary for the beneficiary to show evidence indicating the need to sell the structured settlement, and that the sale itself would be in the best interest of the beneficiary (this is done to drive away unscrupulous buyers).
The Waiting Time Is FundamentalWhile nightly commercials might make it appear that the structured settlement sale process is simple and straightforward, this is not really the case. In fact, it may take 30 days or more for the sale to come to an end. And it can be much longer, if there are complicating factors, such as different jurisdictions, the types of payment, amounts of payment and the needs of the beneficiary that can add more complications to the situation.
In the end, the risk of structured settlement to buyers is as great as those faced by people seeking to sell their settlement. In both cases, the best option is to work with a reputable broker who can handle the situation and guarantee a beneficial sale for both parties to the transaction. The right brokerage can simplify, streamline and offer peace of mind to sellers and buyers.
Also read "Structured Settlement Annuity Companies".