Structured Settlement Buyouts

Written by Jacey Harmon
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A person who is engaged in a structured settlement may need to access the future payments for immediate cash needs. A medical emergency, changes in financial needs, and buying a house are all reasons why people need to access their future payments. The only option available is to pursue a settlement buyout. This occurs when a person agrees to offer future payments in exchange for a current lump sum.

There are many more options with selling your settlement than with the settlement itself. You can sell just a portion of each payment, especially if your payment stream is semi-annual or annual. You can also sell a select number of payments; for instance, if you are getting paid monthly, you can sell your payments between June and November. Or, if you choose, you can sell all the remaining payments for one lump sum.

It is important to get a quote from several businesses that engage in settlement buyouts. The amount offered for your settlement will vary for each buyer. The size of the settlement, length of the payments and time it takes to get their money back are all factors that are considered when businesses make an offer. Once a price is agreed upon, it may take as little as seven days or as many as 30 days to receive the money.

Benefits to Selling Your Settlement

There is a host of benefits for selling your settlement. The most obvious is the opportunity to capitalize on better investments. If invested properly, the money from selling a substantial settlement may provide for higher payments than the original payment stream. Paying off high interest debt or any debt at all may be an attractive benefit for those who are considering selling a settlement. Of course, we cannot forget the fun stuff: vacations, cabins, second homes, or boats can all be purchased with the proceeds from selling a settlement.

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