Purchase Structured Settlements
In order to sell your structured settlement, it is also important to understand the process of purchasing.
Who buys structured settlements?
In general, those interested in a structured settlement range from brokers, to individual investors, and also large corporate entities. To break down their reasons, the broker is generally the middle man who negotiates the deal, pocketing a small portion of the profits for their services. The retiree is probably interested in the tax-free monthly payments that will offer guaranteed profit over time (a sure investment). The corporation might be looking for safe investments to support their retirement plans, or to help with advertising in the future.
To put it simply, to receive your structured settlement early, you're agreeing to give up some of the money you were to receive. This is the carrot on the end of the stick to the investor. They are giving you a lump-sum cash payment, and in return, they will be increasing their profits over the long run. Looking at the deal from the buyer's side, there are several things to be particularly aware of:
Tips for Negotiating with a Buyer
Tip 1: Remember, the court is on your side. If a judge makes a decision against a sale, it is important to realize this judgment is not against you, but of concern that you are not getting a fair deal from the buyer.
Tip 2: Not all structured settlements are tax free, so know which type you are offering. This will be very important when it comes to discussing the value of the lump-sum of your remaining payments. Furthermore, keep in mind that some settlements are not as easy to pass to an investor without penalty (loss of benefits).
Tip 3: If you are selling during a down economy, expect the purchaser to negotiate for lower terms, as this is customary. In other words, investors are especially prone to look for bargain deals during a poor economy. However, don't let that stand in the way of getting a fair trade.