Individuals looking to find a buyer of structured settlement annuity payments don?t have to try very hard. Browsing through the Yellow Pages will reveal the dozens upon dozens of financial institutions that want to purchase structured settlements of all periods of length. But that?s just the tip of the iceberg. Doing some quick research online shows that there are hundreds, possibly thousands of companies that would gladly offer a one-time lump payout in exchange for taking ownership of the annuity plan.
Why would an individual or company want to purchase a structured settlement?
Money! Here?s how the process typically works:
Mr. Smith gets hurt at the ABC Grocery Store because one of the employees forgot to put up the ?wet floor? sign after mopping. Mr. Smith falls and suffers a torn knee muscle that is incredibly painful. He takes ABC Grocery to court to sue for damages, and for pain and suffering. The judge sides with Mr. Smith and finds ABC Grocery negligent and responsible for Mr. Smith?s accident. He then awards Mr. Smith a settlement of $250,000, payable in monthly installments for the next 10 years for approximately $2,000 per month.
Three years later, Mr. Smith is still receiving is monthly annuity payments of just over $2,000. He still has just over $150,000 left on his settlement. But then two things happen that crush Mr. Smith financially: his car breaks down and because he couldn?t get to work on time, he is fired by his boss.
Mr. Smith is doing everything that he can to generate enough money to get his car fixed, but the mechanic quoted him a $5000 invoice. Without the stability that his job provided, Mr. Smith is now behind on his housing payments and just doesn?t have the financial resources to get the car fixed. He?s stuck. Or is he?
One option that Mr. Smith has is to find a buyer who will give him cash for structured settlement annuity payments. After doing a little research, Mr. Smith finds one company that he?d like to approach about purchasing his structured settlement balance. Because Mr. Smith has 7 years and $150,000+ remaining on his structured settlement. The financial institution offers to take ownership of Mr. Smith?s annuity in exchange for a lump sum of $95,000. Mr. Smith accepts the offer immediately. With the money, he fixes his car and has transportation again. Within a week of receiving his lump sum payment, he now has reliable transportation and soon afterwords gets a job. Mr. Smith gets caught up with his bills and puts the rest of his lump payment in his saving account in case he needs instant access to extra money. The financial institution continues to receive the settlement payments for the rest of the structured settlement. Everybody wins!
Structured settlements are very advantageous to have. However, owners of these annuity payments sometimes need to liquidate their judgments in order to have access to a larger sum of money in the immediate future. Fortunately for them, finding a buyer of structured settlement annuity payouts is very simple and fast
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