We often talk about how selling your structured settlement payments is a really big decision and how important it is to understand the implications and review all your other options. But if you’ve already spoken to a financial expert and decided that selling your future payments is the right move, there’s still more you should know. In fact, there are some big-time mistakes you can make once you’ve decided to sell. CrowFly’s COO, Nita Bhatia, shares three big ones to avoid.
Mistake #1: Selling multiple times within 1-2 years
Once you know that selling is the best choice for your future, it’s important to take plenty of time to decide exactly how much money from your future payments you need. You don’t have to sell the entirety of your future payments when you do sell; you can sell a portion. And while there is no limit to how many times you can sell a portion of your future payments, the fewer sales you make, the better. Here’s why.
Even if you’ve sold some future payments in the past, there’s no fast-track line to sell again. Each time you sell you have to go through the same 60- to 90-day court order process. So, if you need immediate cash, make sure you’re selling enough to get the money you need in order to avoid having to do it all over again.
In addition, the higher the number of payments you are selling are, the better value you’ll receive. So, rather than getting lower values for payments multiple times, consider selling more or all payments at once (if you strongly feel you’ll need the money in the near future). That way, you’ll likely get a better value and reduce costs by only going through the process once.
Mistake #2: Not shopping around for the best price
It is not in your best interest to call one company and sell through them without checking what other companies might be able to offer. That’s because there isn’t one going rate for your future structured settlement payments; different companies will make you different offers for your asset. At CrowFly, we have been able to offer as much as $90,000 more for a seller’s payments than a competitor. (Of course, that doesn’t mean we can always offer that much more, but it does prove it is worth shopping around.) Many companies will price match where and when they can, so it pays to get multiple quotes before moving forward.
Mistake #3: Starting the process without fully understanding it
Selling doesn’t happen overnight. The process of transferring the rights to future structured settlement payments involves many steps and paperwork, and it requires the approval of several parties. The insurance company has to approve, the judge has to approve, and sometimes there can be language in the original settlement requiring additional steps if ever a sale.
We’ve seen some people get frustrated with the number of “hiccups” that can happen throughout the sale process. Most of these issues can be avoided by staying organized and having your up-to-date policy in hand. Our transaction navigators are also available to discuss what can be done to help ensure a smooth sale.
All in all, it’s important to ask questions about the process so you know what to expect. We can help with that. Contact us today at (888) 560-6629 or get started here to discuss transferring your future payments. There is no obligation to use our services when you call.