A Better Way To Sell A Structured Settlement- Via Auction

 The Standard Method of Selling A Structured Settlement – Persistence and Patience (not always used)We have all seen the countless ads on TV from a various companies, “Get Lump Sum Cash Now.” For years, people have turned to factoring companies in their time of financial need.

Smart consumers will learn from the insurance companies. Have you ever been involved in a car wreck? The insurance company requires for you to get three estimates and then they will pay the company that offers them the best deal.The smart consumer will also invest a little bit more of his or her time to make sure they get the best deal for their annuity or structured settlement. They will call at least three factoring companies and get competitive bids from each. Then they will go back to the three aforementioned companies and see if any are willing to beat their best offer. It can be tiring and time-consuming to follow through in this process, but for the average person, it could be worth several thousand or even tens of thousands of dollars in one’s bank account at the end of the process.

The Better Method of Selling a Structured Settlement – Open Marketplace AuctionA new way of dealing with this issue has recently been introduced to the marketplace. Websites allow Structured Settlement owners the ability to list details of their payments, and receive cash bids directly from Top-Rated Funding firms. The process is relatively simple. Clients sign up for a free account and list the details of the payments they receive. Once an account is created and the details of the payment arrangement are known, Funding Firms can log in and make cash bids directly on the purchase of the settlement. Each firm can see the current highest cash offer, and if they wish to beat it with a higher cash price, they can do so.

Sellers do not need to worry about being called countless times by salespeople because the contact information of the settlement owner is not shared. When a factoring company makes a cash bid on the settlement, the service notifies the settlement owner of the new bid via email. Having settlement buyers compete in an open marketplace lowers the profit margin for funding firms, and forces the lowest possible discount rates to be applied when funding companies compete to buy future payments. This in turn ensures that clients can get the maximum amount of money back from their settlement.

The Importance of Comparison ShoppingTwo siblings had been receiving separate, but identical annuity payouts in the form of a structured settlement from an accidental family member death.

Sibling one got into a financial crunch. When this happened, sibling one called a “Factoring Company.” She was offered a lump sum buyout, and although the offer was much lower than the value of the settlement, sibling number one didn’t realize the importance of shopping the competition, and sold her settlement for $70,000. Sibling number two heard about the buyout and thought that it would be nice to have her cash now also. But, sibling number two was not as desperate for an immediate buyout. Sibling number two took the time to shop around for a better deal. Sibling two managed to uncover an online service, and they helped to secure the best offer possible. Sibling number one got a $70,000 buyout and was initially happy with her cash buyout. Sibling number two came to the service with the same initial $70,000 buyout offer for the settlement. After working with the service, sibling number two got offered $100,000 for the same settlement sibling number one sold for $70,000.

Sibling number two sold her settlement for $100,000 to JG Wentworth who is an auction partner in the service. While sibling number two did get the best possible deal, sibling number one unfortunately has to live with the fact knowing that she made a $30,000 mistake by not shopping the competition.In ConclusionYour structured settlement or annuity is the foundation of your financial future.

If you find yourself in financial need now, you should at the very least give yourself a couple more weeks to shop your deal to the competition. You might be telling yourself that you cannot afford to wait, but the truth is that you cannot afford to take the first bid that you are offered. In some cases, jumping at the first offer could be the equivalent of financial suicide to a structured settlement owner.So, be patient and persistent in the process of finding a buyer for your settlement. And remember, if you are willing to negotiate with a car dealer on the price you pay for a car, then there should be no reason in the world that you should not negotiate with a factoring company when you are looking for a buy-out of your settlement.

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