Process Of Selling Your Structured Settlement

Written By: Mary Michaels on May 27, 2010 No Comment

1. Request a Quote for Your Structured Settlement Annuity

First thing you need to do is contact a structured settlement factoring company or work with a broker and ask for a quote on your structured settlement annuity. Lots of companies will force you to fax papers to show them you have a qualified structured settlement before they will issue a quote to you. The lump sum you receive is calculated by the discount rate you are being charged. The rate can range from 9-25%; therefore it helps to look around. The lower the rate the better for you. Thousands of dollars could be the difference just between two percentage points.

2. Return Contract for Transfer of Structured Settlement Payment Rights

A contract and state disclosures will be sent to you or a notary for you to review and sign. You will see the amount of money you’ll receive in exchange for your future structured settlement payments. You will also have to sign an affidavit showing the reasons you want to sell your annuity for a lump sum. The judge will most likely read the reasons listed to determine if the transaction is considered to be in your best interest, so try and have a plan for what you will do with the money. You will have to show the notary a copy of your driver’s license or state ID on the day you sign. It is advisable to speak with a financial advisor and/or attorney before deciding to sign the contract to cash out your annuity so that you are clear as to the terms and conditions of the transaction.

3. Send Annuity or Structured Settlement Paperwork

If you haven’t already done so, now is the time to send in a copy of your annuity paperwork. It was previously mentioned that most companies will ask for these documents before providing you with a quote. Nevertheless you’ll have to get a copy of your policy over to whatever company you chose. They may just require a one page benefits letter from your annuity issuer showing your structured settlement payments you’re entitled to and the dates they are due to be paid out. You will have to send in a copy of your state ID or driver’s license along with your Social Security card. Divorce settlement papers will also be needed if you’ve ever been divorced just to make sure you’re ex-spouse isn’t entitled to any of your structured settlement payments.

4. Transfer of Structured Settlement Annuity Payments Petition is Filed

Once the signed contract has been received by the funding company it is reviewed for accuracy and a file is created. Checks will be done to make sure you have no open bankruptcies, past due child support or taxes due to the government. If you have any of the aforementioned issues they will need to be paid off from the funding proceeds. Your file will then be sent to a local attorney who will submit a petition with the appropriate court in your area. Usually the petition will be filed in the county courthouse where you live. Notices are sent to the owner and issuer of your annuity informing them of the upcoming hearing regarding the transfer of structured settlement payment rights. They have 20 days or so to respond to the notice or object if anything seems out of place. As long as everything is correct they usually won’t object to you transferring your structured settlement payment rights.

5. Settlement Transfer Hearing

You will be notified as to the time and place of the hearing. Most states will require your attendance although a few do not. Make sure you’re dressed appropriately for court and arrive on time. Typically the hearing only lasts just a few minutes. The judge may ask you and or the attorney one or two questions regarding the annuity transfer and will then render a decision. Most applications are approved, however denials do happen. Most denials are based on the judge’s opinion that the transfer is not in your best interest. He or she may feel that the discount rate you’re being charged is too high or may not believe the reasons you listed in the affidavit are adequate enough for you to request a lump sum payout. Occasionally, he or she may ask for more information and issue a continuance, however statistically, most structured settlement transfers are approved.

6. Closing Transaction

You should expect to receive your money just a few days after the hearing as long as the judge approves and signs the order. You can choose to have the money wired to you or receive a check sent via mail.

If you’re looking for the highest quote on your structured settlement, contact Mary Michaels at Corona Capital and request an immediate quote for your annuity. Mary can be reached at +1 (302) 200-8480.