Structured Settlement Buyers: What You Should Know

 

Can you buy a house with a structured settlement?

In short, structured settlements can be an excellent proof of income to mortgage lenders. As long as you can document that you are receiving payments and that your payments are going to last a while, it should be accepted.

Structured Settlement Buyers: What You Should Know

Selling a structured settlement can be a tough decision, but many choose to do so for a variety of reasons. Structured settlements are usually awarded to those who have suffered personal injury or are covered by workers’ compensation. The purpose of selling a structured settlement can range from paying medical bills to finally taking that vacation of a lifetime.

Structured settlement buyers, also known as annuity buyers, are people or companies who are willing to pay a lump sum of cash in exchange for inclusionary right to all or part of a structured settlement. It’s important to understand the different types of and to determine which one is right for you.

Types of Structured Settlement Buyers

There are four main types of that are available in the marketplace.

1. Factoring Companies

Factoring companies are the first type of structured settlement buyer to consider. Factoring companies are typically large, well-capitalized financial institutions. They act as a middleman between the seller and the original issuer of the structured settlement, purchasing the annuity payments for a lump sum.

Factoring companies are usually highly regulated, and usually require court approval before acquiring a structured settlement. Factoring companies are typically licensed and regulated by the Department of Banking in their respective state.

2. Attorneys

Attorneys are another type of structured settlement buyer. Attorneys can help individuals understand how structured settlements work, and provide advice and counsel on various aspects of the sale-including obtaining necessary court approvals. Attorneys may also be able to assist sellers in completing the sale process more quickly and efficiently.

3. Financial Advisors

Financial advisors can also act as . Financial advisors are able to provide advice and counsel on the pros and cons of selling a structured settlement. They can also help structure and negotiate a sale that meets the seller’s needs.

4. Private Investors

Private investors are the final type of . Private investors are typically individuals or businesses who have the financial resources to purchase a structured settlement for a lump sum. Private investors typically offer lower interest rates and may provide flexible payment options.

Benefits of Selling Structured Settlements

Selling structured settlements can offer many benefits to the seller, including:

• • Immediate access to needed cash

 

• • Potential tax benefits

 

• • The opportunity to invest the proceeds in higher-yielding investments

 

• • The ability to pay off debts

 

• • The ability to pursue an education or other goals

 

Before deciding to sell a structured settlement, it’s important to weigh the potential costs and benefits. Structured settlements typically offer tax-free, guaranteed income for a lifetime, so it’s important to consider the future implications of any sale. It’s always a good idea to consult with legal and financial advisors before deciding to sell structured settlements.

Frequently Asked Questions (FAQs)

Who can buy a structured settlement?

Any individual or business entity can become a structured settlement buyer. This includes factoring companies, attorneys, financial advisors, and private investors.

How do I select the right structured settlement buyer?

When selecting the right structured settlement buyer, you should carefully compare offers from several different buyers and determine which one best meets your needs. You should also ensure that the buyer is properly licensed and regulated by the Department of Banking or other applicable regulatory body.

How long does it take to sell a structured settlement?

The answer to this question depends on several factors, including the buyer and jurisdiction. The process typically takes between 4-6 weeks from the time of submitting the agreement to the court for approval.

What are the tax implications of selling a structured settlement?

The tax implications of selling a structured settlement depend on the seller’s individual situation. Generally speaking, if the seller sells part but not all of the settlement, only a portion of the proceeds will generally be taxable. It’s important to consult with a tax advisor prior to selling a structured settlement.

Conclusion

Selling a structured settlement can be a complex and sometimes confusing process. It’s important to understand the different types of , and to carefully compare offers to determine which is best for your individual situation. It’s also important to consider the potential costs and benefits of selling a structured settlement, as well as the potential tax implications.

Before deciding to sell a structured settlement, it’s always a good idea to consult with legal, financial, and tax advisors. With the right advice, sellers can make an informed decision about whether selling a structured settlement is the right decision for their individual situation.

For more information about , visit Nabina Society of International Affairs or Annuity.org.