Getting Cash For Your Annuity Payments

You can sell your annuity or structured settlement for cash to a private note investor or lending institution. You will not be doing this without risk. This is the reason it is so important for you to understand the workings of this type of business deal, and it is even more important for your examine the company you are planning to make your sale to.

Acquiring cash for annuity payments is a more complex process than you realize, which means it will require the assistance of an annuity specialist or a structured settlement specialist. This person might be an attorney or a professional who has received training in the field of annuities. You will begin the process by contacting the insurance company who prepared your annuity or structure settlement contract or you may choose to work with a different individual, but you will need the help of a professional.

As you sell your annuity payments to a private investor or financial institution, you hand over to them the rights to your future payments in exchange for a lump sum. Annuity payments can be sold as a whole or just a portion. For example, if your annuity provides payments for twenty years, you have the option to sell one year to twenty years of payments. If you choose to sell them two years, you will not receive payments for those two years, but you will receive the remaining 18 years of payments.

One of the first steps to acquiring the cash for your annuity payments demands you to decide how much money you will need in to have. Many people choose to sell their annuity payments to pay off debt, medical expenses or college tuition. Others want their cash to make an investment or for the purchase of stocks, bonds, mutual funds, or even real estate. With today’s housing market, they are not looking to buy a house, but instead to purchase land.

The second step involves gathering the details of your annuity payments. The investor or financial institution will must have the name of the insurance company backing the annuity payments as well as the details of the annuity such as the dates, amounts of each payment and the number of payments.

The investor will also need to know the amount of money you are asking for and the number of payments you wish to sell. The information requested by the buyer will help him or her to evaluate the current value of your annuity.

After reviewing the information the investor will call you to inquire about payment options. Private investors who specialize in annuities do not purchase the annuity themselves they will contact a number of annuity buyers on your behalf. Then the investor will first contact you will the highest offer of one of the buyers and then they will coordinate the connection between you and the buyer.

The preliminary consultation will take around thirty minutes of your time. You want to feel at ease with the investor, if not do not do business with him or her. If you do, then take the time to ask questions and obtain references. It is important you contact the referrals and conduct a reasonable amount of time researching the company. You should also check with the Better Business Bureau to see if there are any unresolved complaints against this company. If you can, it is a good idea to find out about any pending lawsuits.

Once a buyer has been located for you annuity payments you will receive documents, which will require you to sign them and have your signature notarized. This part of the process will take any where from 3 to 10 business days as required by state law.

Once the documents have been signed they are then sent to a factoring company who assists with the underwriting process. Once the underwriting process has been completed, the papers then must receive the approval of the judge, who authorizes the transfer of payments. It is important for you to have a very convincing reason for selling your annuity payments for cash. Many judges are reluctant to allow the sell of annuity payments for cash unless the annuity owner can show just cause.

Before attempting to sell your annuity payments for cash, do a thorough examination of several different note-buying companies. Speak to several consultants prior to making a decision on a company. This will go a long way in ensuring you are dealing with an honest company and your experience with the sale of your annuity payments much more pleasant.