Remember Me
forgot your password?

Selling Your Structured Settlement

Selling a structured settlement is not difficult but does require some research and thought on the part of the seller before committing to the structured selling process. First, we must define a structured settlement. A structured settlement is a legal contract between two parties to compensate one party in the contract a set sum of money paid out in installments over a given period of time. Usually these contracts are formed and agreed upon between the party that is being compensated and insurance companies or other entities that are required to make the payments.

Once the contract or sum is agreed upon, the party that is required to make the payments begins making payments in monthly installments. Often times these payments are made over years requiring the payee to wait years for the total amount. In some cases the monthly income is viewed as favorable by some. In other cases, the total amount in one lump sum may work better for the payee. Often, lump sum payment is not an option for the payee so they are forced to take a monthly installment payment plan over a set period of time.

Selling a structured settlement to an investor or company that specializes in buying notes, or paper, is an option for people that have been awarded structured settlements. In some cases, people that have structured settlements may experience financial difficulty or health issues that require them to liquidate their structured settlement quickly. Loss of a job or other income streams may be lost, prompting these people to sell their structured settlement. Sudden illnesses such as cancer or heart attack may cause long term disability and immediate cash is needed to meet monthly expenses as well as medical bills.

There are other reasons to sell a structured settlement although not as dire as the above reasons. Some people sell their structured settlements to free up cash to take a long dreamed of vacation. Others sell their structured settlements for home improvements or to buy the dream house they have always wanted. The reasons vary with some selling their notes to put their children through college or taking the lump sum cash investing it in other financial instruments to increase their return over time.

It should be noted that when selling a structured settlement, the total amount of the settlement will not be realized. Structured settlement buyers offer to buy these notes at a discount in return for lump sum cash to the payee. The settlement buyer is assuming risk in buying the note with the discount reflecting the amount of risk the buyer must assume. Many risk factors must be considered by the settlement buyer including the amount of the settlement and the financial worthiness of the payor. Companies that make structured settlement payments are not immune to insolvency and bankruptcy, so the buyer must consider these factors before purchasing a structured settlement.

Selling a structured settlement is not difficult and only a process that requires some serious thought and research. Considering your needs and the reason for selling the settlement should be foremost before initiating the process of selling your structured settlement.

Phillip Hatley

Phillip Hatley writes about many subjects in the financial industry including futures trading and structured settlements. For more information about structured settlements, please visit his structured settlements blog.

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Finance Articles
  • More from Phillip Hatley

Home Insurance Quotes Online: The Easier and Faster Alternative

By: don robert | 26/11/2009
Searching for insurance companies online is easy and can be accomplished by simply entering keywords such “home insurance” in the search boxes of search engines like Google.

Best Way To Get Free Money For School

By: Jazmine Young | 26/11/2009
The free money comes in the form of scholarships and the amount you could win can be very high. You can expect to get up to $10,000 in free financial aid for school that you will never have to pay back.

Six Starter Investing Real Estate Opportunities

By: Michel Lautensack | 26/11/2009
Investing Real Estate opportunities are something that you really will want to consider if you have the funds available or the lending sources in place.

Apartment Real Estate Investing

By: Michel Lautensack | 26/11/2009
One of the easier types of real estate investment for the most part when first starting out is perhaps apartment real estate investing. There are a couple of reasons for this.

Mortgage Refinancing - Consider All These Facts Before You go For Refinancing

By: Thomas Jones | 26/11/2009
For the past few years, several people have happen to be caught up with home mortgages that have high rates and tough norms. At present, since interest rates along with home prices have dropped considerably, it makes sense to look at the choice of refinancing a home mortgage. If you...

Mortgage Refinancing Made Simpler

By: Raul Crasmin | 26/11/2009
Given that at first you could not get the best rate. Perhaps you did not have twenty percent to put down or perhaps your credit required a bit of rejuvenation. If you have been in the home for some years now and you have build up some equity, it might...

Mortgage Refinancing - Tips on Mortgage Refinancing

By: Marie Mardeko | 26/11/2009
With the current mortgage market changed for the best it makes sense to refinance your existing costly mortgage. Over the past few years before the recession many people were caught up with expensive home loans with hard preconditions. Now with mortgage rates and home prices at their record lows it...

Current Mortgage Rates - All You Wanted to Know About Mortgage and Mortgage Rates

By: Peter Rivers | 26/11/2009
A mortgage property is collateral for the obligation, often the payment of a balance due. Even as a mortgage is not a debt, it is indication of a debt. It is a shift of an interest in property, from the possessor to the mortgage lender, as long as this interest...

The Proper Way To Build A List Of Penny Stocks

By: Phillip Hatley | 18/07/2008 | Investing
This article describes both a fundamental and technical way to build a list of penny stocks.

Using Forums With Network Marketing

By: Phillip Hatley | 08/07/2008 | SEM
This article describes how to use online forums as a tool to enhance a network marketing business.

Choosing The Proper Keyword For Your Niche

By: Phillip Hatley | 03/07/2008 | SEM
The article outlines the proper way to choose a keyword when building a websites. Choosing the proper keyword can mean the difference between success and failure.

Using Long Tailed Keywords For The Beginner

By: Phillip Hatley | 07/06/2008 | SEO
This article outlines the importance of using long tailed keywords in search engine optimization for beginner bloggers or webmasters.

Selling Your Structured Settlement

By: Phillip Hatley | 07/06/2008 | Finance
This article outlines and defines a structured settlement including how they are created and the nature of a structured settlement. This article also describes methods for selling a structured settlement.

Tips To Reduce Chronic Fatigue

By: Phillip Hatley | 07/06/2008 | Alternative Medicine
This article outlines the symptoms and causes of chronic fatigue. It also provides possible solutions to remedy the symptoms of chronic fatigue.

How To Buy And Sell Stocks Below Market Prices

By: Phillip Hatley | 06/06/2008 | Finance
This article outlines how to purchase and sell stocks below the current bid and offer prices reflected in the trading box.

What Is A Note Buyer

By: Phillip Hatley | 05/06/2008 | Finance
This article outlines what a note buyer is and what to look for in a reputable note buyer.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (2.86, 1, w2)