Structured Settlement Selling Mistakes
A structured settlement can be a lifesaver for most people. Having cash coming in after an accident or injury might be the only way for you and your family to maintain your standard of living. Unfortunately, some of the payments are structured in such way that you will not receive the cash which you require when you and your family need it the most, but rather over a period of several years.
That is why a whole industry exists which gives recipients an option to sell their structured settlement for a lump sum. But before you make a choice to seek structured settlement funding, you should ensure that you take a moment to consider the following six most common mistakes people make when selling structured settlement.
Most Common Mistakes
- Rushing into any decision: in spite of the fact that individuals who sell their structured settlements are usually under pressure to get the money as fast as possible, it`s critical that all the advantages and disadvantages that are related to the decision are carefully measured, and that one doesn`t rush into any decision. Selling your payments will affect the long-term futures of you and your family, and is certainly something that should be carefully considered.
- Letting your emotions control your decisions: we have all felt desperate or gotten excited when faced with various kinds of situations. We could be excited about beginning a new career or purchasing a house, or we may be feeling desperate because we`re facing high medical expenses or we`re about to lose our home. Although we`re desperate or excited, we have to carefully think through our decision. Some funding sources or brokers may try to take advantage of our current situation. We should discuss our situation with a trusted friend, family member, pastor or attorney or whomever. We should not ruin the financial options we`ll have tomorrow by making illogical decisions today.
- You fail to search for a reputable company: there are many businesses that are purchasing structured settlements. Nevertheless, there are also many companies that have bad reputations. Some of these companies don't even offer a reasonable and fair value for the settlement payments. You should always take the time to look for suitable and reputable companies and also look into their reputation before deciding to transact with them.
- Accepting a Low Offer: one of the most common disadvantages which happen when selling a structured settlement payment is taking too little cash. Most people who sell structured settlements are desperate for money, and allow themselves to be taken advantage of -instead of doing the right amount of research so that they can find a reputable company.It is always in your best interest to go after a fair offer, not one which will only satisfy your immediate needs. Always ensure that you check what you would earn if you held on to the payments and the current going rates for lump sums. This will help you to have a good idea of what you should expect and help you decide how much of your structured settlement to sell.
- Agreeing to sell to the highest bidder: Unfortunately, some structured settlement sources or brokers will make a strong offer so that they can get somebody under contract. They will then begin with reducing the offer and making excuses. Once you`re under contract with a funding source, it`s difficult to back out. Even if you`re able to pull out, you will have to start the whole process over again losing valuable time.
- Not understanding the process: the most common mistake which people make when selling structured settlement payments is not fully understanding the process before they begin. Seeking payments which are too high or too low is only the tip of the iceberg - you have to be acutely aware of what it means to sell your structured settlement before agreeing to anything.
Working with a good company will typically ensure that you'll be given the right information. However, the burden is always on the consumer to make sure that he/she is well informed.
If you would like to avoid these mistakes, you should ensure that you understand your monetary needs, how the marketplace works and how structured settlements work. Every offer and seller are different. It is only through careful planning and research can you be confident that you`ll get what you require and still be given a fair offer.