MyNoteMarket.com - Personal Finance & Financial Notes

Is Your Money Safe?

Sun, 25 Oct 2009 15:34:00 +0000

As of October 24 2009, the FDIC has taken over 106 US banks. While the FDIC does not publish a troubled bank list, you can use Bankrate.com to check your bank's rating.

If you have concerns about your bank, you should maintain your bank balances below $250,000 at each bank. This limit has been increased from $100,000 until December 31, 2013.

Visit the FDIC - Frequently Asked Questions for more information.

Proven Ways to Become a Millionaire

Thu, 20 Aug 2009 15:26:00 +0000

The best way to become a millionaire is to do what millionaire do. The list I have compiled highlights several ways past millionaires have made their fortunes. It includes only proven ways to hit that million dollar mark and filters out the “get rich quick” schemes.

The Millionaire List:
1 – Real Estate Investing – Historically, real estate has been on of the best ways to accumulate wealth. The use of leverage or using others people’s money gives an investor the opportunity to multiple his wealth over time. Check out this video from Donald Trump about real estate investing.

2 – Living Within or Below Your Means – This is a tough one for most people but being dollar-wise with your money and saving works. If you use the power of interest rate compounding to grow your savings, your nest egg can grow to a sizable asset. Use this Millionaire Calculator from BankRate.com to calculate what you need to save to become a millionaire.

3 – Stock Market Investing – Historically, the stock market has made thousands of millionaires. Long term investing in fundamentally sound companies, many who pay dividends, allows you to leverage compounding again. Check out this power of compounding article from Fool.com - Want to Be a Millionaire? You Can

4 – The Corporate Route – Many millionaires come from the corporate America by either earning a high salary for years or being lucky enough to get stocks or stock options in quickly growing firms.

5 – Own a Business – This is the America dream of running your own business and becoming a millionaire. Check out this article from Entrepreneur.com – Young Millionaires

6 Inventions – The right invention can make you a millionaire. Check out these articles from Entrepreneur.com – Inventions

While there are many other ways to become a millionaire, this list gives the ways with the highest probably for success.

Also, check out these personal stories and articles:
Quicken.com – Hidden Millionaires
MSN.com – Millionaire Stories
Legal Zoom - Millionaire Moms

Find the Highest CD and Savings Interest Rates

Mon, 17 Aug 2009 14:24:00 +0000

As with any search, you should look locally first for the best CD and savings rate, usually a local paper will be a good start. Then check out these 2 websites:

1 – BankRate.com – This site lists the best national rates for all types of personal finance products.
2 – iMoneyNet.com – This site focuses on the best rates at money market funds.

In addition, you should always check your current financial institution (including banks, credit unions, brokerage firms) about the best rates. Often they will just roll you into an existing product when an option paying a higher rate is available. Many times, the highest rate will be with a institutional that is primarily online, like Ally.com.

Be sure to check the terms and conditions carefully. You sure know how the rate changes, how long your money is tied up for, and potential penalties or restriction.

In this low interest rate environment, every dollar counts.

How to Reduce Your Property Taxes

Fri, 14 Aug 2009 14:28:00 +0000

No one likes paying higher and higher property taxes but there are legal ways to reduce your taxes. If you own property be sure to file for a homestead exemption. Many states offer reduced real estate taxes if you file and qualify for a homestead exemption. The savings can be a couple hundred dollars a year. In addition, filing a homestead can potentially protect your home from certain legal actions.

Check out these links for more information:
1 - Wikipedia - Homestead Exemption
2 - LawCheck.net - List of Homestead Information by State

In addition, each homeowner should look into real estate tax exemptions, abatements or rebates offered by their individual state. For example, New York state offers tax reductions on the following:
1 - Cooperative or Condo Tax abatement to reduce the tax disparity between some properties.
2 - Disabled Crime Victim and Good Samaritan Exemption
3 - Military Request for Relief
4 - Senior owners of rent controlled property

Here are links to a couple state websites:
1 - New York City Finance - Tax Reduction & Rebate Programs.
2 - California Franchise Tax Board - Homeowner & Renter Assistance
3 - Florida Department of Revenue - Exemptions

Check your individual state for tax rebates, reductions and abatement programs.

Watch out for Hidden Bank Fees

Tue, 11 Aug 2009 02:08:00 +0000

Today, more banks are charging customers for services and penalties than ever. With bank bottom lines sagging and customers struggling to maintain balances, the potential for banks to impose fees is high and growing. If you have been hit by a fee or penalty at your bank, it may be time to review all the potential fees and penalties that could cost you more money in the future.

While there is talk about the government reviewing high bank fees, it is worth your time to do a quick review of your bank account fees.

The 3 most common fees include:
1. Overdraft fee – Check into overdraft protection and talk to the bank manager to see if he can waive the fee.

2. Monthly Maintenance fee – Check into free checking or savings accounts at other banks.

3. ATM fees – Look into maintaining an account at a bank that does not charge fees for out of network ATM transactions or has a large ATM network.

Remember you are the customer and you have choices on where to do your banking.

How to get money from your IRA before age 59 ½

Mon, 03 Aug 2009 15:46:00 +0000

If you have a traditional IRA and absolutely need cash now, there are several ways to get cash from your IRA before the age of 59 ½. While most financial advisors do not recommend these options because the money in an IRA is tax advantaged, meaning you can potentially earn a return on the entire lump of cash before taxes. This taxed advantage can be a substantial return over time.

But if you have run out of options to raise cash from other sources, tapping into your IRA may be an option. Here are 7 potential ways to get money from your IRA before age 59 ½:

1. Use SEPP rules - (substantially equal periodic payments) rules or the 72(t) rules. This allows IRA owners a way to withdraw a fixed amount of cash for a minimum of 5 years or to the age of 59 ½. While you have to pay ordinary income taxes on the distributions, you do not have to pay the penalty. Be aware that this option is somewhat complicated to apply for and obtain.
2. Medical expenses - You can withdraw money to pay for medical expenses if they exceed 7.5% of you adjusted gross income. Penalty free.
3. Total or permanent Disability – If you become totally or permanently disable, you can apply to get distributions. Penalty free.
4. Education expenses - You can withdraw money to pay for educational expenses for you, your spouse or your children or grandkids. You must make sure the eligible student attends an IRS-approved institution. Penalty free.
5. First Home Exemption – You can potential use $10,000 single or $20,000 if married, it purchase home for the first time. Penalty free.
6. Military Exemption - Members of the military can receive early IRA distributions without penalty if they meet certain criteria.
7. Straight withdrawal – As a last resort, you can withdraw money from your IRA for any reason but will be required to pay a 10% penalty and ordinary income tax on the amount withdrawn.

For more information, check out the IRS publication 590

For more information about alternative sources of cash, please go to MyNoteMarket.com

*Please consult your financial or tax professional to review you options and confirm eligibility.

Tips on Selling a Structured Settlement

Wed, 29 Jul 2009 19:18:00 +0000

If you watch any TV or surf the internet, you probably have seen numerous advertisements from companies wanting to purchase your structured settlement or annuity. If you have a structured settlement or annuity to sell, it might make sense to explore this option if you need the cash immediately. But you should be aware of the potential draw backs and issues concerning selling a structured settlement.

Some issues concerning the sale of a structured settlement include:
1. Roughly two thirds of states have laws that restrict or limit the sale of structured settlements. Most of these laws were enacted to protect the consumer and ensure the original intent of the settlement will benefit the holder.
2. The sale of a structured settlement generally must be approved by the court which has legal costs and implications.
3. Some insurance companies who back the structured settlement through an annuity limit or prohibit the sale or transfer. Or there may be additional costs imposed by the insurance company.
4. Buyers of structured settlements are in business to make money. You should be aware that the amount you receive in a lump sum with be greatly discounted. The amount of the discount will depend on the amount of the settlement, time remaining, interest rates, discount rate, and many other factors. For this reason, you should obtain multiple quotes.
5. Do forget the potential tax implications of receiving a lump sum versus annual payments.

For more information about selling your strucutred settlement, please go to MyNoteMarket.com

* Please consult a lawyer, licensed insurance agent, securities broker, tax professional or other financial professional for advice regarding your personal situation.

Is Your Money Working Hard Enough for You?

Sat, 25 Jul 2009 14:54:00 +0000

Are you leaving money on the table because of laziness? If your main bank credits very low interest on your account balances, you can get a nice boost by managing these balances. If you have accounts at places like E*Trade, Schwab, ING Direct, Ally or even Capital One, you can easily transfer money between accounts to maximize the interest you are getting. 1 or 2% may not sound like a lot of money but if you have a $5,000 average balance and manage it to the highest interest rate, you could pocket $50 to $100 dollars over a year.

To boost it even further, invest the extra interest in a blue chip stock like Verizon or other stock which pays a healthy dividend. Think of it as found money that you will not touch for a long time. With time and compounding, you maybe surprised at the balance in 10 years.

Just make sure you do not get charged for transfers between accounts. Many banks today are getting fee happy and charging for everything they can.

Find Your Hidden or Unclaimed Money

Fri, 24 Jul 2009 00:18:00 +0000

If you need cash to pay bills or just live a little better, you may be able to find hidden money that you might not know about. Many people have assets they over look or have just forgotten about. You can think of it as a treasure hunt that may pay off. Each person should do a quick check of the following list to see if they may have hidden cash. When you are searching, check for yourself and family members, living and deceased, you never know what could have been forgotten.

1. Unclaimed cash from states where you or family members have lived in the past. Check out National Association of Unclaimed Property Administrators to search states for unclaimed money. Or check out Missing Money, this is a free service.
2. If you have moved from different states, go back through your records for old bank accounts, brokerage accounts or old employers that may not have been closed or have balances. Contact these institutions directly to check about unclaimed balances.
3. If you had money in a failed bank, check out the FDIC website for unclaimed money.
4. Did you or you children have savings bonds that may have been forgotten. Check out this US Treasury website to look for forgotten bonds.
5. Did you ever work for a company that had a pension plan that you might have forgotten about? Check out the Pension Benefit Guaranty Corporation
6. Do you have a life insurance policy that you no longer need? Check into surrendering the policy or selling it to get a life settlement.
7. If you have a structured settlement or lottery winnings that you are receiving periodic payments, you can sell these future payments for a lump sum. Many times you can sell all or just part of the future payments.
8. Did you own a home? Check into a reverse mortgage. Generally these are only available to seniors who have paid off their homes and have substantial equity to tap.
9. Do you own an annuity that pays you out over time? Check into surrendering the annuity if you have this option but watch out for surrenders charges. If you can not surrender the policy, check into selling the annuity.
10. Did you own a business? Check into getting cash for you receivables, otherwise know as factoring.
11. Did you sell real estate or a business and take back a note that the buyer still owes you money? Check into selling that note.

While there are asset locator services who can assist in finding unclaimed moeny, you can do most of the research yourself and save their fee of 10 to 20%. As always, be very careful to protect your personal information and only use trusted firms or websites.c

For more information about selling your financial notes, please go to MyNoteMarket.com

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

Is a Reverse Mortgage for You?

Mon, 13 Jul 2009 14:50:00 +0000

It seems reverse mortgages are getting more popular in these difficult financial times but does the benefit out weigh the potential cost? Yes, you do get a portion of the equity now to pay bills or use for any other propose and you get to stay in your house. These two benefits may be the only things that matter to you, if they are, a reverse mortgage may be the financial help you need.

But if you dig a little deeper, you’ll find additional upfront costs to get and maintain the reverse mortgage. And if you are concerned with maintaining your Medicaid benefits, you should get good legal advice before going down the reverse mortgage path.

Check out this article about reverse mortgages from BankRate.com. It provides a get overview of pros and cons of reverse mortgages.

Alternatives to a reverse mortgage may include:
1. Home equity loan
2. Downsizing to a smaller home or condo
3. Selling an annuity you may own
4. Selling a life policy you no longer need

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

By John Weimer, CFA

For more information, please go to MyNoteMarket.com

How Lottery Winnings are Priced

Wed, 09 Jan 2008 00:50:00 +0000

Lottery winnings are priced by discounting the future payments by a discount rate. This discount rate can vary widely from 8% to 15% or more depending on the buyer. The lower the discount rate, the more you should receive for your lottery.

There are several factors in determining what discount rate to use, here are the most common:

-Type a lottery winnings i.e. certain cash flows or life contingent.

-Market conditions i.e. current interest rate

-Buyer's experience, profit target, and funding sources

-Each potential buyer will individually determine how these factors are used to arrive at a price for your note. Pricing can vary greatly by buyer.


Check out these links for more information:

Time Value of Money- Wikipedia

Lottery Payments- Wikipedia

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

By John Weimer, CFA

For more information, please go to MyNoteMarket.com

How To Sell a Real Estate or Mortgage Note

Thu, 13 Dec 2007 16:41:00 +0000

1) First you should determine your current and future cash needs and financial condition. Since you can sell the entire note or just a partial amount, you should have a specific required amount in mind before you contact any buyers. It is recommended that you consult a financial advisor or lawyer.*Tip: You will receive more cash for 1st lien notes versus 2nd lien due to the higher potential recovery rate for 1st liens.*Tip: While you can sell only part of your note, selling the entire note is generally easier, less confusing, and preferred by many buyers.2) Gather all your real estate note documentation. While you will not need most of the documentation to get an initial quote, it is good to have it ready should you decide to sell your note. Documentation for an initial quote may include:-Property type, location, pictures -Sale price, loan amount, terms and conditions -Payment amount, interest rate. *Tip: There is no need to send all your documentation for a quote, be wary of requests to gather too much information(like your Social Security information) for a initial quote.3) Search for a buyer of real estate notes. It is very important to feel comfortable with potential a buyer. There are a number of ways to find a potential buyer:-talk to your financial advisor or lawyer, -use to MyNoteMarket.com to identify potential buyers, -search the Internet, -talk to friends, family, or acquaintances who have sold a real estate note. 5) Get multiples quotes for your real estate note. Potential buyers will generally give you a free analysis and no obligation quote for your note. They should explain all potential options and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.*Tip: Ask the buyer up front about all costs and who is responsible for paying them. Generally all fees should be included in the quote and paid by the buyer.*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.6) Once you have selected a buyer, you should execute a contract (purchase agreement) with the buyer. This contract should outline the terms and conditions of the payment and agreement.*Tip: It is strongly advised that you have your lawyer review this contract.*Tip: You should not be required to guarantee the note which means the new note should be "without recourse or non recourse". Meaning you are not personally liable for the note re-payments, if the property owner defaults.*Tip: Make sure the potential buyer has checked the credit of property owner early in the process to avoid any surprises later.7) Now the information gathering process will begin. The potential buyer will request specific information about your real estate note. This process can last between 2 to 7 days.*Tip: Request to see the buyer's privacy policy.Information requests can include:-Deed of Trust or Mortgage, the original not a copy-Title Policy, and Closing/Settlement Statement -Proof of Fire / Hazard Insurance, evidence of down payment -Exact address, map, and/or legal description of property -Recent appraisal, photographs -Payment history, collection or servicing agent information -Your and the property owner's (note payer) personal information -Insurance agent -Lawyer or financial advisor's information 8) Once the buyer has all the required information, they will begin a due diligence process. This process usually lasts between 2 to 4 weeks, depending on the buyer and complexity of your note and property. *Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.9) When the due diligence is complete, the buyer will generally iss[...]

How are Structured Settlements Priced?

Fri, 07 Dec 2007 15:26:00 +0000

Structured settlements are priced by discounting future payments by a discount rate. This discount rate can vary widely from 9% to 18% depending on the buyer. The lower the discount rate, the more you should receive for your structured settlement. Also, the further out a payment is, the more it will be discounted. Meaning you will receive less cash now as the time to receive future payments increases.

Check out these links for more information:

Structure Settlement Pricing - Wikipedia
Structure Settlement Factoring - Wikipedia

* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

For more information, please go to MyNoteMarket.com

By Johnny Polo
PegasusPolo.com

Questions to Ask a Structured Settlement Buyer.

Wed, 28 Nov 2007 15:31:00 +0000

Questions to ask and items to know about any potential structured settlement buyer:

1) How long have they been in business?

2) Is their contact and business information verifiable?

3) Are they bonded or insured?

4) What is their underwriting criteria?

5) How is their Better Business Bureau rating?

6) Do they handle your type of structured settlement?

7) How many structured settlement purchases do they do a year?

8) Are they familiar with your local courts and state practices?

9) What is their success rate in obtaining structure settlement requests in your state?

10) How will they price your structured settlement?

11) What discount rate did they use in the quote?

12) Can they provide a time table for the process?

13) Do they use multiple financing sources for your quote?

14) Are they a principal or a broker?

15) Are they associated or member of a larger corporation?

16) Do they have a privacy policy?

17) Are they members of trade and professional organizations?

18) Are they professional in all communications and business presence?


* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.

For more information, please go to MyNoteMarket.com

Written by Johnny Polo, CEO & Founder of PegasusPolo Ventures, LLC
PegasusPolo.com

A Guide to Getting a Reverse Mortgage

Fri, 16 Nov 2007 16:00:00 +0000

1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or reverse mortgage professional to understand all the details.Check out the following sites for more reverse mortgage information:AARP's Reverse Mortgage Guide HUD Reverse Mortgage Guide Fannie Mae Reverse Mortgage Guide 2) Gather all information and documentation. While you will not need most of the documentation to get an initial quote or consultation, it is good to have it ready should you decide to get a reverse mortgage. Documentation for may include:-Home deed, most recent tax bill -Homeowner’s/hazard insurance policy -Your personal information, Social Security, birth certificate, contact information -Death certificate for any deceased property owner whose name still appears on the title -Any information about your current mortgage(if applicable) *Tip: There is no need to send all your documentation for a quote, be wary of requests to gather too much information(like your Social Security information) for a initial quote.3) If you decide that a reverse mortgage is right for you. You should contact a certified, HUD-approved counselor to go over the process to answer all questions and concerns that you or family members may have. This step is required by the government, if you want a federally insured Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.You can call HUD to get a HUD-approved counselor at Housing Counseling Clearinghouse on 1-800-569-4287. Or visit their website at : HUD Approved AgenciesFor a Fannie Mae Home Keeper Mortgage, you must attend a consumer education session conducted by a nonprofit or public agency engaged in reverse mortgage counseling or a Fannie Mae counselor.4) After you have met with a HUD-approved counselor, you will receive a HUD Counseling Certificate. Keep this certificate to give to your mortgage lender, it is required documentation to a get a Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.5) Search for a reverse mortgage lender. It is very important to feel comfortable with potential a lender. Please see "Due Diligence" for tips on selecting a lender.There are a number of ways to find a potential lender:-Talk to your financial advisor or lawyer, -Call HUD for FHA approved lenders at Housing Counseling Clearinghouse on 1-800-569-4287 or visit their HUD-approved lender website at www.hud.gov, -Talk to you local bank, -Use MyNoteMarket.com to identify potential lenders, -Search the Internet, -Talk to friends and family members who have a reverse mortgage. 6) Get multiples quotes for your reverse mortgage. Potential lenders will generally give you a free analysis and no obligation quote for your reverse mortgage. They should explain all potential options, fees and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.*Tip: Ask the buyer up front about all costs and who is responsible for paying them. *Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.7) Once you have selected a lender, you will have to fill out an application. There can be an application fee.*Tip: Request to see the lender's privacy policy.8) Appraisal - The lender will order an appraisal to determine an objective market value of your home and whether any repairs will be required to meet Federal Housing Administration guidelines. Federal Housing Administrati[...]

How To Sell Your Life Insurance Policy

Tue, 06 Nov 2007 02:00:00 +0000

1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or lawyer. *Tip: If you are considering letting a life policy lapse because of future premium payments, it is good idea to get a quote. You may be surprised at the hidden value of the policy.2) Contact the insurance company or financial advisor who issued/sold your life policy to determine if you can cash out(surrender) or if the policy has a accelerated death benefit and what penalties(if any) are involved. Depending on the type of policy and contract, it may be possible to surrender the policy for a net cash surrender value or use the accelerated death benefit option directly with the insurance company. This option may give you more money than selling the policy. If you would like to get competitive quotes before you surrender your policy, you should obtain all the contract details and confirm the life policy can be sold, assigned, transferred to a new buyer. You will need this information to give to the potential buyer.*Tip: Check out the guide from the National Association of Insurance Commissioners (NAIC) entitled: Selling Your Life Insurance Policy3) Search for a buyer of life insurance policies or life settlements. It is very important to feel comfortable with potential a buyer. Please see "Due Diligence" for tips on selecting a buyer.There are a number of ways to find a potential buyer:-talk to your financial advisor or lawyer, -use MyNoteMarket.com to identify potential buyers, -search the Internet, -talk to friends, family, or acquaintances who have sold a life policy. 4) It is recommended that you have as much information collected before you begin this process. The potential buyer will request specific information about your life policy. *Tip: Request to see the buyer's privacy policy.Information requests can include:-Life insurance policy/contract - from the insurance company or payment provider -Insurance company contact information -Your personal information including driver's license -Your medical professional's contact information -Your lawyer's information, if needed. 5) Get multiples quotes for your life policy. Potential buyers will generally give you a free analysis and no obligation quote for your life policy. They should explain all potential options and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.*Tip: Ask the buyer up front about all costs and who is responsible for paying them.*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.6) Once you have selected a buyer, they will continue an underwriting process. This process usually lasts between 2 to 8 weeks, depending on the buyer, the insurance company and complexity of your situation and life policy. They will contact the insurance company to work through the details and ensure compliance with the new contract.*Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.7) When the underwriting is complete, you will have to sign a contract (purchase agreement) with the buyer. This contract should outline the terms and conditions of the life settlement payment.*Tip: It is strongly advised that you have your lawyer review this contract before you sign it. *Tip: You generally have a minimum of 10 days to rescind the contract after you receive payment, it varies by state. Check the contract.8) Once all paperwork and contracts are review and completed[...]

Should You Use a Financial Broker?

Mon, 29 Oct 2007 20:26:00 +0000

Whether you are selling your house, stocks or your structured settlement, annuity, life settlement, or other financial instrument, you generally have two choices; go directly to potential buyers or use a broker. If you’re the kind of person who likes doing the research and leg work to potentially save money, going directly to buyers might be a good option.

But does going direct give you the most money for your structured settlement, annuity, life settlement, or other financial instrument? Unfortunately there is not a “Yes or No” answer, it depends on you and how good you are at research, understanding, and comparing your options.

Fortunately, you don’t have to do one or the other. You can go direct to a few select companies and also use the services of a broker to compare quotes. While most brokers would not favor this option, it can prove valuable to you and might get you more money for your structured settlement, annuity, life settlement, or other financial instrument.

Here are a list of potential pros and cons for each:

Direct
- No broker fee
- More control of buyer selection
- Substantial time commitment
- Limited funding sources(buyers)
- Must learn industry and rely on buyers
- Control personal information

Broker
- Broker fee
- No or limited control of buyer selection
- Limited time commitment
- Multiple funding sources(buyers)
- Professional expertise
- Limited control over personal information

As with any financial transaction:
-always do as much due diligence as possible
-consider all the factors including experience, reputation and professionalism
-the highest quote is sometimes not the best option
-know who you are dealing with
-and if it sounds too good to be true…it probably is not true.

Trust your instincts.

For more information, please go to MyNoteMarket.com

Written by Johnny Polo
PegasusPolo.com

How To Sell a Structured Settlement

Wed, 24 Oct 2007 23:09:00 +0000

1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or lawyer. Remember, you can sell all or just a portion of your future cash payments.2) Contact your payment provider, usually an insurance company, to determine the amount, number payments remaining , and terms of your structured settlement. It is a good idea to get all contract information from your provider. You will need this information to give to the potential buyer.*Ask your payment provider if they have worked with structured settlement buyers, they might disclose a few potential buyers to begin your search.3) Determine what amount you would like to sell. You will receive more money for payments that will be received sooner than payments in the distant future.4) Search for a buyer of structured settlements. It is very important to feel comfortable with potential a buyer.There are a number of ways to find a potential buyer:-talk to your financial advisor or lawyer,-use MyNoteMarket.com to identify potential buyers,-search the Internet,-talk to friends and family who have sold a structured settlement.5) Get multiples quotes for your structured settlement. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.6) Once you have selected a buyer, you will have to sign a contract with the buyer. This contract should outline the terms and conditions of the structured settlement payment. It is generally called a Disclosure and Transfer Agreement.*Tip: It is strongly advised that you have your lawyer review this contract before you sign it.7) Now the information gathering process will begin. The potential buyer will request specific information about your structured settlement. It is recommended that you have as much information collected before you begin this process. This process can last between 2 to 14 days.*Tip: Request to see the buyer's privacy policy.Information requests can include:-Settlement Agreement/Court Judgment/Release-Annuity policy/contract - from the insurance company or payment provider-Payment verification - payment check stub or bank statement.-Your personal information including driver's license-Copy of marriage license or divorce decree (if applicable)-Bankruptcy discharge documents (if applicable)-Your lawyer's information8) Once the buyer has all the required information, they will begin an underwriting process. This process usually lasts between a month to several months, depending on statutory requirements, the company, and complexity of your structured settlement.*Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.9) When the underwriting is complete, the buyer will submit the settlement to the court for approval. A judge will review the settlement and determine if it is in the your best interest to sell the settlement. The buyer should cover all costs associated with the approval process. While you are under no obligation to appear in court, you should consult an advisor about your unique situation.*Tip: Ask the buyer up front about all costs and who is responsible for paying them.10) If the court grants your settlement request, the buyer will transfer the cash to you.Congratulations your sold your structured settlement!*Please note: these are general guidelines, all situations are unique and vary by state and company.For more information, please go to MyNoteMarket.comWritten by Johnny PoloPegasusPolo.com[...]

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