Outrageous Structured Settlement Discount Rates

Selling a structured settlement can be great on many levels. Including, freeing up cash to pay for college, buying a home, or paying off debt. But, the question is, "Why do factoring companies take such a large chunk of the structured settlement or annuity?" The national average of 19.2% for a discount rate is just an absurd figure. Yes, there is a risk factor involved, taking on payments from a company that may not be around in 20 years.

The national average taken from a 2004 California Attorney's General report was 19.2%. If a structured settlement is going to be sold for a lump sum of money, the interest rates have to be much lower. A reasonable rate would be in the range of 10- 13%. With this rate both the factoring and the structured settlement owner would come out very happy.

Lets take a $200,000 structured settlement that is getting paid out evenly over the next 10 years. That is $2,000 per month. With the discount rate of 19.2% over the next 10 years, equals around $112,000 to the structured settlement owner. The factoring company is taking 44% of the $200,000.

With the discount rate of around 12%, the structured settlement owner would get a payout of around $140,000, that is almost $30,000 higher than the national average.

The factoring industry is heading this way in the future. It may take a few years, and a few more stunning reports, but the factoring industry is needed in many ways.

There are more and more structured settlement factoring companies offering great discount rates as low as 8%. These companies are the future of the industry.

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Structured Settlements 101 - What Do You Know About Structured Settlements and What You Should Know

If you have ever been in debt, there is no doubt that your main goal is financial freedom. But the way one gets into debt in the first place varies from person to person. There are solutions for everyone in the form of debt relief but depending on your situation, you may find some are more beneficial to you than others.

If your current financial problem is just another bump down the road that can be easily overcome, bankruptcy is clearly not the way to go. However, if you've lost your job due to poor health or physical injury, your gateway to a debt free future might be a structured settlement plan.

structured settlements offer you a fixed monthly income instead of a one-time lump sum payment. They can be made on a personal injury claim or to help you with statutory periodic payments. You can combine this plan with other forms of debt relief to overcome and eventually remove all your debt. Although the limitation to this is that once fixed, a structured settlement plan cannot be changed, it will offer you a steady monthly income for life.

When looking for debt relief options, you should seek out a professional debt counseling agency. They can provide you with a working budget, help you out when choosing the best settlement debt plan for you, and even negotiate a fixed monthly payment towards your debt with your creditors. Just make sure to check their background with Better Business Bureau before hiring.

The road to financial freedom might seem long and strenuous but with a proper budget, a strong settlement plan in place and some debt counseling, you'll be out of debt in no time.

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JG Wentworth lays off Bryn Mawr employees

www.EmploymentCrossing.com The financial services firm of JG Wentworth has laid off approximately 120 employees in its Bryn Mawr, Pennsylvania headquarters according to a required notice sent to the Pennsylvania Department of Labor and Industry. Affected employees will receive full salary and benefits for 60 days as required by the WARN act. Founded in 1991, JG Wentworth specializes in purchasing structured settlements, annuities, and life insurance policies



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Steps Involved With a Structured Settlement Transfer

Let us show you an overview of how structured settlement transfers are being done. Read through this and we are hoping this helps you.

Steps Involved with a structured Settlement Transfer

Get Quote

The first step toward getting money from your annuity is to contact a funding company or broker and request a quote. Many places will make you fax documents proving to them that you have an annuity before they will quote you. If you contact a representative they will not force you to fax anything in order to receive a quote. We work with the best funding companies and can usually find our clients the highest cash offers. The amount you receive is based upon the discount rate the company charges you. This rate can be anywhere from 11-25% so it's good to check around. The lower the rate the more money you will receive. The difference in rates could mean thousands of dollars to you.

Sign Contract

Once you agree to the offer presented to you, state disclosures and a contract will be sent to you or sent to the notary that will execute the signing. It will indicate the amount of money you will receive in a lump sum in exchange for your future payments. You will also sign an affidavit which includes the reasons you are requesting a transfer of payment rights be granted. The judge will review this to make sure the transaction is in your best interest so make sure you have good reasons. Also make sure you have your driver's license or state ID on the day of the signing as the notary will check.

Send Documents

At this point you'll need to fax, email or mail in a copy of your annuity contract if you have not done so already. As mentioned previously, many companies will ask for this before offering you a quote. In any event you'll need to show which ever company you choose a copy of the annuity contract. You may be able to just send a one page letter written by the insurance company that issues your annuity that describes the benefits you're entitled to including the dates and amounts of your payments. At some point you will need to send in a copy of your driver's license or state ID and your Social Security card. If you've ever been divorced then a divorce decree will need to be sent as well. This is needed to prove that your ex spouse has no rights to your payments.

Attorney Files Petition

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 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 will usually never object to you transferring your payment rights.

Hearing Takes Place

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 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 cases are approved.

Funding

Here is the best part. You will be funded after the hearing takes place assuming that the judge grants the order approving the transfer. It could take a few days before you actually receive your money. Most places will either mail you a check or wire the money into your bank account.

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How to Get Your Money - Whiplash Settlement

Whiplash is one of the most common reasons people receive structured settlements. Every day, car accidents occur all over the country and whiplash is a common result. The number of people injured in this manner is not expected to go away anytime soon, so it is important to know how to get the money you deserve if it should happen to you.

Whiplash can range from a minor case, where it is difficult to move your neck or movement is accompanied by some pain; all the way up to very serious cases, where you cannot sit up or get out of bed. More serious cases often result in physical-therapy sessions for months or even years into the future, and sometimes there may even be permanent damage in the neck or back.

If you do find yourself in this situation, make sure you know your rights when it comes to money. A whiplash settlement can be a drawn-out process, but be prepared for the insurance company to pressure you to settle up quickly. It is in their best interest if you sign their agreement as soon as possible, though it will usually not be the best thing in your own interest.

You do not have to sign the settlement agreement right away, especially if you are not in the state of mind to fully understand every term in the contract. It is important that you not let the pressure get to you. Deal with your immediate health needs and find a lawyer who can look over all of the paperwork and take over communications with the insurance company or anyone else involved.

A lawyer is a good investment if you stand to receive a large settlement because they will know how to go about getting you the money you deserve. Whiplash-settlement processes often end with an agreement outside of court. You will likely have to accept a structured payment plan instead of one lump sum, as most cases are handled in this manner anymore.

The good news is, you will have a steady source of extra income for a determined period of time in the future, but the bad news is you may very well need that money now rather than later to cover medical bills and attorney fees. Unfortunately, even if you hold out and go through the court process it is likely a judge will grant a structured payment plan anyway.

The best thing you can do to get your money is to accept the best settlement plan your lawyer can negotiate for you and then cash-in part, or all of it, to receive most of the money in one large payment. This is often the only option available to whiplash victims who need to receive the money right away to take care of financial situations caused by the accident.

Settlement packages that take years to pay out may not seem very fair when you are suffering from whiplash and are facing a mountain of bills, but it is the current trend in most countries and leaves victims with little opportunity other than cashing it in after the payments start to roll in.

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Senior Citizens Finding Creative Ways to Access Money in Their Golden Years

Senior Citizens are looking to life settlements during this uncertain economy. This little known transaction is becoming increasingly popular for seniors looking for sources of cash. They can provide an immediate lump sum for unwanted best life insurance rates">insurance rates">life insurance policies.

best life insurance rates">insurance rates">life insurance offers great financial security for when someone dies. Although, most believe that their unwanted policy has little value outside of its original purpose. Most believe there only two things that can be done with an unwanted life policy. Either surrender the policy to the insurance carrier or let the insurance policy lapse. If the policy lapses the owner gets nothing. If the policy is surrendered to the insurance carrier, the policy holder usually gets very little.

Senior settlements offer a third and more attractive option. These occur when someone sells their existing life policy for an immediate lump sum payment. The seller benefits by getting instant money which is often 200%-500% more than the cash surrender value offered by the insurance carrier. While the buyer, often a financial institution such as a bank or investment fund, pays the ongoing premiums and receives the death benefit when the policy matures.

Unfortunately, many seniors don't realize that life policies can be bought and sold by their owner, like any other asset. The right to sell an insurance policy has even been upheld by the U.S. Supreme Court. In fact, life insurance policies have been sold in the USA dating back to the 1800's.

Contacting a settlement broker is usually the first step of the life settlement process. The life settlement broker can provide a free estimate and negotiate offers with potential financial institutions interested in buying life insurance policies. The life settlement brokers usually require an application and then they will collect the other medical records and insurance documentation on their own to get the process started.

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High accident activity allowance Structured Settlement Annuity Assis

www.highrisklifeinsurancehub.com If you are looking for information about structured settlement annuity, you will find the below related article very helpful. It provides a refreshing perspective that is much related to structured settlement annuity and in some manner related to personal injury claim calculator, personal injury settlement averages, settlement houses or debt settlement letter. It isn't the same old kind of information that you will find elsewhere on the Internet relating to structured settlement annuity. Before doing so, consult an expert with the data that you collected from your research on the company. These corresponding documents must provide details about the structural settlement plan as well as details of the insurance provider. Insurance companies can make one time down payment after dealing with the victim. If this article still doesn't answer your specific structured settlement annuity quest, then don't forget that you can conduct more search on any of the major search engines like Search. To get specific structured settlement annuity information. Company can look into the laws about the right to sell structured settlement. An attorney will likely know of companies who have a good reputation for structured settlements.structure settlementstructured settlement annuitystructured settlements literaturestructured settlementstructured settlements



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Getting Cash For Settlements Just Became Easier

If you have gone in for a structured settlement for whatever reason and now find that you need some hard cash in your account you could get cash for settlements and that too online. It is not such a difficult task, as many people still believe. In fact getting cash for settlements is something few people know is possible. They accept the structured settlement for fear of getting nothing at all or getting a lower amount from the courts. But down the line they decide that they should have opted for a lump sum instead of the settlement even if they had to get a little less. For these individuals the good news is that getting cash for settlements just became easier.

A structured settlement is a court verdict, or an out of court settlement put down on paper, that describes how a compensation for a tort suit will be paid out in installments over a period of time. The amount to be paid out and the time period over which it will be paid is decided between both parties and recorded on paper and registered as a legally binding document. The claimant may get the total sum in annuities or a part of it in a lump sum and the rest in annuities over a few years. In rare cases the claimant gets a very large sum of money for life.

Should the claimant decide that he or she would rather have a sum of money instead of having to wait for the annuity they can opt to get cash for settlements. This is how they can go about the process of cashing in their structured settlement.

They should first seek the assistance of the lawyer who represented them in the first place to ascertain of it is legal for them to sell their settlement to a third party. While this is the normal procedure in some rare cases and in some states it is illegal to transfer the rights to a settlement. Once the lawyer gives the go-ahead the claimant should seek the advise of a financial expert to determine the fair value of the settlement. On arriving at a price for the structured settlement the claimant may then proceed to find a buyer for the settlement.

The easiest, safest and most convenient way to go about this is to register with one or more of the online structured settlement portals on the Internet. They have a database of many individuals and firms looking for lucrative structured settlement deals. Signing up is free and fast. Once you have your account online with a few of the portals you can upload your settlement documents and your terms and conditions that should include your demand price.

The software will match your offer to similar offers and the system will allow you to negotiate with people willing to buy your structured settlement. You must make it clear who is going to bear the fee of the transaction and the transfer of the structured settlement. Once you are satisfied the payment is made and you transfer the rights to the third party to continue receiving the annuity while you get a total amount a little lower than you would have gotten from the original settlement.

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Selling a Mortgage Note? - Here is What to Expect

If you have recently sold property and financed the buyer by taking back a mortgage or deed of trust, you own a Mortgage Note. You will be collecting monthly payments for years to come. But what is that worth in dollars today, and how can you get your money ahead of time?

If you need a lump sum of cash now, you can sell your mortgage note to a third party wanting a regular payment stream as an investment. There are many companies out there that will buy your mortgage, discounting the payments for the remainder of the loan back to present day dollars. But there is a watch out here.

Keep in mind that the interest rate that will be used to calculate what today's dollars are worth will be different than the interest rate on the mortgage note. Why is this? Well the investor most likely will want a different interest rate than what the mortgage note is for based on current rates.

For example, if the interest rate on your mortgage note is 6%, but the average rate in the market is 8%, why would an investor agree to 6%. He would still be getting the 6% on the face of the note, but by paying less than the present value at 6%, he makes up the additional 2% up front.

One last thing to keep in mind is that the higher the discount rate that a buyer uses, the smaller the lump sum payment will be. This also works in reverse - if the note says 8% and the current rate is 6%, an investor will pay a premium to buy that payment stream.

There are many companies that purchase mortgage notes, so it would be wise to shop around to find the best rate, terms, and reputation in order to get the right value for your sale.

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Structured Settlements and the Injured Soldier

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Rick Tosh in Sterling Diamond Commercial

Sterling Diamonds commercial I was in ever so briefly...



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How to Purchase Structured Settlement to Prevent Being Cheated

When you are planning to purchase structured settlements, care should be taken so as to avoid being swindled. You will find that there have been known cases where people who purchase are conned by unscrupulous dealers. This is because of the fact that many of the people who buy these are not able to differentiate a fake document from an original one. Care should be taken when you want to purchase structured settlements. There is an incidence of some con men who tricked a buyer into paying them the lump sum that they had. They forged documents saying that a colleague of theirs, had won over five million dollars in the lottery.

These people were so professional that they set up offices and even had the use of a court room. The process they used was that they made an office that looked like a branch of the said lottery company. This was to confirm that the lottery company had indeed given the prize to the person who wanted to sell his structured settlement. From this point, they managed to set up a court setting next to the local court house. They got people to act as judge, attorneys, bailiffs etc. Now the purchaser had all the assurance he needed that the structured settlement was indeed genuine. He did not need to search further or make any inquiries as the person he was dealing with seemed to know little about it.

Furthermore, the so called "colleague" of the owner had told him that the person who had won the lottery would be happy with a settlement of only 3.5 million. This meant that he had over 1.5 million shillings on that particular settlement only. This greed blinded him and he ended up purchasing it. To make matters worse, he paid it in cash. By the time he realized, there was no such thing and all the buildings and offices that he entered were gone. To make matters worse, the names the con artists used were of people who had died in the previous month. Next time you want to purchase structured settlements, be sure to make thorough and verifiable inquiries. This would help you avoid such cons and scams.

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Generalizations About Purchasing Structured Settlements

Have you tried to purchase structured settlements or have your structured settlement sold and not gotten anywhere? That is a popular story for many who want to be involved in the structured settlement industry. Often when people obtain a structured settlement annuity, they thought they would get a lump sum but have ended up only receiving a small amount of money each week, month or several months for a couple years. For some people, this product will just not do. They need money and they need money now. Many a hurting soul have stumbled out of a court room all broken up in side with only the promise of small payments through the years. Though this may help them a tiny bit, it does not do for them what they had hoped for. Situations arise and hard times can come but settlement annuities are not exactly what the people need. They need money and they need it now! That is why having someone buy your annuity or being a buyer (depending on your position in this endeavor) is such a great thing to be involved in. It ultimately helps everyone out and gets people heading in a direction they want to go. Bills can be paid, companies can be happy with having business and individuals will be able to move on with their lives instead of getting small sums of money every once and a while.

Structured settlement annuities are easily bought and sold. A buyer simply needs to research a few companies who buy settlement annuities and find which features are most appropriate for their plans. Some companies will buy settlement annuities for a certain price if the annuities fall within a certain price range. Other companies will simply charge a percentage of the settlement annuity as compensation for their lump sum payment. Either way, the seller and the buyer tend to benefit from such a transaction. The best way to go is often to find a company that buys rather than an individual. Individual buyers may not have the legal or business like experience to handle such a lump sum and therefore might not be able to hand over the money or do the paperwork quite right. That causes many more problems so many would suggest going through a buyer company or a corporate buyer.

If you are a buyer, you typically will not have to screen your clients or turn any clients down. Structured settlement annuities are pretty straight forward as they are court ordered. The only thing a buyer will have to look out for is the careful consideration of the paperwork. All information should be checked with the courts to make sure it is accurate and valid. After paperwork is complete, there should be a cooling off period before the transaction completely goes through. A week or two is a long enough period to do the job properly. This way, both you as the buyer as well as the seller can make sure this is really the path that should be taken in such a transaction. Once the transaction is done, things will be complete and you can be on to new customers!

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Guide to Selling a Structured Settlement

Many people throughout the world have structured settlements or annuities with the desire of turning these future payments into a lump sum of cash. In other words they wish to sell their future or periodic payments.

This is SSQ's official guide to selling structured settlements.

1) Determine the exact amount of money that you need and the reason that you are cashing out your fixed income.

2) Next you need to find out your payment details. This can be accomplished by calling the company or entity that is making your periodic payments (usually an insurance company). For example, they will state you are receiving 146 additional payments of $500 per month.

3) With the payment details established, you will be able to estimate the total amount left to be paid. Most structured settlement factoring companies customize the payment plans for their clients. Perhaps you would like to sell the first half of your payments and keep the second half for some fixed income.

a) Discount rate- As defined by Wikipedia: The discount rate is based on the

future cash flow in lieu of the present value of the cash flow.

b) There are varied discount rates associated with each payment plan that

you choose. The payments that are further away will have a higher

discount rate and are worth less money.

4) After deciding which payment plan best suites your needs, it is time to find an ethical and trustworthy structured settlement factoring company.

a) Shopping around has been the most effective way to receive the most money for your structured settlement payments. Log on to this site to see the information needed to process your structured settlement quote. http://www.structuredsettlement-quotes.com.

5) As you begin to receive quotes from the factories settlement companies, it is a good idea to obtain your annuity contract from the insurance company or entity making your payments. This step is necessary to secure the quote from the structured settlement factoring company. It is always good idea to get a second opinion from a financial advisor. This is not required but recommended.

6) Once you begin to receive quotes from the factoring companies it is a good idea to check the Better Business Bureau to find out if there have been any complaints against any of these companies.

7) Once you have chosen a factoring company an interview process will occur and several documents will be required to begin the process. Specific information about your structured settlement will be needed. The process can be facilitated much quicker if all the information is collected prior to the interview process. At the minimum this takes between 3 to 10 days.

8) Once the factoring company receives the documents, the underwriting process occurs. This takes between three weeks and several months to complete.

9) Upon completion, the factoring company submits the settlement to the court where a judge will approve or disapprove the transfer of payments based upon the client's best interest. The factoring company typically covers the fees associated with this process. You are under no obligation to go to court with the factoring company, however seek the advice of your financial advisor as each case is unique.

10) Once approved, arrangements are made with the factoring company for the transfer of your funds.

Andrew Cravenho

http://www.StructuredSettlement-Quotes.com

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Structured Settlement Cash - How You Can Get it Fast

One of the smallest consolations that personal injury victims get after the case trial is the settlement that is awarded to them. A certain amount of money will be paid to them in increments over the next two or three decades. In most cases, this is a great deal of relief for the plaintiff but for others, structured settlement cash is much better. Some victims prefer to sell their settlement for a number of reasons, chief of them is usually to pay off debts that they have incurred in the duration of the trial.

structured settlement cash is better if you are hoping to use the lump sum to finance a start up business that will generate a lot more money than what you have originally expected. The choice of selling is also plausible if you have certain outstanding loans that need to be paid off. Some plaintiffs choose cash over the increment payments because they want to pay off their mortgages or if they want to buy a new car without having to go through auto loan applications and credit checks. Having a large amount of cash on hand certainly appeals more to a lot of people than the idea of receiving a few hundred dollars every month.

Structured settlement cash can easily be obtained if you immediately get in touch with the financial institutions that buy this type of agreement from plaintiffs. The negotiations will be very brief as they would out rightly offer you the amount that they are willing to pay in exchange for your settlement. It is easy to locate these institutions but the hard part is finding one that will agree to pay the amount that you expect. The best option that you have is to look for as many companies and take the best price offered.

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Elected Leaders Speak Out on the Benefits of Structured Settlements

Members of Congress from across the country, Republicans and Democrats alike, agree that structured settlements provide excellent help for accident survivors. Structured settlements offer guaranteed income that is exempt from federal and state taxes.



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Structures Settlement Free Related Guide

structuredsettlementstips.tripod.com It's difficult to provide accurate structures settlement information, but we have gone through the rigor of putting together as much structures settlement related information as possible. Distributed by Tubemogul.



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Annuity Settlements - A Highly Dependable Plan

An annuity settlement is an agreement where an insurance company continues to pay to an individual for a time period, in case of an accident. The documents that need to be generated for such an agreement are an agreement, a qualified assignment, an annuity application, a court order if claimed and an annuity policy. The payments could be made for the duration of the life of the applicant. The payments can be in the mode of equal installments, installments of varied amounts or lump sums. The payments made under annuity settlement are free from income tax. However, it is important to get an assurance of the credentials of the annuity provider.

The duration of the payments is entered into the settlement. To ensure upon the fact that the annuity should remain tax free, the agreement must not be changed once both the parties decide upon it. The individual participant is given the choice on deciding upon the date of commencement of payment, and duration. Periodicity includes monthly expenses, present age, extent of hazard in occupation and retirement plans. However, if the payments are made to an estate it is free from the income tax, but subject to estate tax. On investing upon a structured settlement annuity there can be effect reflected upon the investor's ready money.

The closing of the annuity settlement are decided upon both the state and the federal laws. The annuity is generally close within 3-6 months. The federal law insists upon a court order so that there are no tax liabilities on the investor. It has been found that over $6 billion dollars of settlement annuity are purchased annually.

The Main Features of the Product:

· The applicant is entitled to receive tax free payments for a scheduled period of time.

· It helps to meet the needs of the injured applicant along with the medical expenses.

· It ensures a replacement income during the period

· The settlement annuity is funded by fixed income annuity which is also backed by a strong and large insurance company.

The broker can help you to assess the costs based on calculations and projections which might be difficult for you to analyze. The broker acts a platform for you to negotiate on these ends. When you need to sell your annuity payments you must take your time and decide upon the purchaser. You need to take a closer look into every issue related to it.

The Benefits for the Injured Party:

Features customized design: Payment modes are designed to meet the needs of the injured party.

Emphasizes Stability:

Payments are made to help the applicant's present and future needs.

Promotes Security:

Settlement annuities are structured with highly dependable financial institutions. This is because the applicant would not like to mismanage with the lump sum amount.

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