A structured settlement is a good guarantee for financial security. It ensures that you have a consistent source of income. However, emergencies may strike and suddenly that payout is not going to be enough. For many people, selling a structured settlement is their only option.
If you are one of these people, you’ll be faced with a tough dilemma. There’s a large buyer’s market out there that is hungry for structured settlements. The assured income is a big draw after all. The trouble is that with all those offers out there, it’s easy to make a mistake.
Here are some mistakes to avoid when selling your structured settlement:
Going Into the Sale Quickly. Admittedly, if you are selling your structured settlement, it usually means there is an emergency. This does not mean that you should settle for the first deal that falls into your lap. Take your time and look at the offers. You are the seller and you are in control here. Don’t cede that advantage.
Consider what each offer would be giving and their effect on you. This is a long-term decision and just giving your settlement up on the first offer should not be considered.
Not Doing Your Homework. As mentioned, there are a lot of buyers out there, ranging from individual buyers to actual companies. There are several reputable companies that will ensure that you get paid promptly and fully. There are also a lot of scam artists.
Don’t go in blind. Check up on the buyers with good and bad reputations. This ensures that you won’t end up getting a bad deal or being scammed.
Going For the Highest Bidder. It may seem strange, but you shouldn’t sell your settlement to the highest bidder. The problem with bids is that they’re just that: a bid. A bid is not binding and some buyers make an initially high bid and then start stalling once they get you under contract.
They will then try to delay and lower their promised bid. They hope that you’re desperate enough that any money will be fine. Don’t go for bids. Requests that the cash be ready before any contracts are signed so that you can get the money immediately.
Not Fully Understanding the Transaction. Structured settlements are legal constructs and that means that they fall under a lot of laws. This means you need to be sure that you are crossing your t’s and dotting your i’s correctly or you may end up in legal or financial trouble. Consult with a professional company or an expert before you start selling or signing anything.
Spending the Windfall Unwisely. Once you manage to sell your settlement, you shouldn’t spend the money you earn without thinking about the consequences. This may be a lot of money, but you also lost a lot of assured income. Be sure that you use it correctly.
Overall, it is easy to make mistake when selling a structured settlement. However, they should be easy to avoid with some preparation and know-how.
If you’re planning to sell your structured settlement, browse through our tips at structuredsettlement.us.com. You can also learn more at http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=4056&context=fss_papers/.
At structuredsettlement.us.com, we list down the biggest mistakes you can make when selling your structured settlement. Don’t be on the losing end of the bargain.