All Structured Settlement Buyouts are Not the Same
As a person looking to sell a structured settlement that has spoken to various buyers you may have many offers on the table. How do you differentiate the offers to determine which is the best structured settlement buyer for you to elect to do business with may be issue you are currently grappling with. In order to truly consider the top alternative for you, you must really understand the offers.
The first step, and maybe the most obvious, is to determine whether the structured settlement buyers are looking to buy the exact same structured settlement payments. If you have a decent size annuity from the settlement of your lawsuit (or an annuity you inherited), you may be surprised by the number of options you have. Different structured settlement buyers may be offering to purchase distinct portions of your structured settlement for a lump sum. When comparing offers you must take the time to determine if you are truly being offered apples to apples. In other words, are your best structured settlement buyout proposals for the same payments and the same amount of each payment. For example, if you get $2000 per month for the next 20 years, are all the structured settlement buyers offering the lump sum for the same period and same amount, or are some making offers for 10 years and $1,000 and others looking to buy $750 for 15 years.
Next you want to determine what the NET amount you will receive will be. That is to say, some companies that buy structured settlement payments may make offers that reflect the gross amount payable to you and others may refer to the net. The
gross amount to buy structured settlement payments may not reflect certain fees and costs that will be deducted at the time of funding. Lets say you are being offered $21,500 as the gross amount payable to you but the fine print in the contract and on the disclosure note that legal or administrative or processing fees will be deducted from the gross amount. If the processing, admin and/or legal fees total $2,000.00, this means that at funding you will receive $19,500 and not the gross amount of $21,500. The $19,500 represents the NET amount and will be the actual amount you receive.
Often times you can quickly locate any difference between the gross amount and net amount by looking at the state issued disclosure statement. This document often requires many of the key financial terms of the transaction. The best structured settlement buyer will provide you with the disclosure statement in compliance with the state law where you live. Each state law is slightly different so if the disclosure statement where you live is silent as to gross and net amount, you should specifically inquire with the structured settlement buyer and ask them to put the information you want in writing.
You can reach Catalina Structured Funding at 800-317-3769 for more information on any topic contained in this article.