While this exact question pops up a great deal, there isn’t any one response to this query. People may sell their own structured annuity or annuity payments, taking into account a number of different factors. While more often than not, the cause of someone offering their annuity payments is due to their present and pending requirement for cash. Sometimes, there are some less pressing factors that someone may have for selling their payment; however the rules require that the need for selling structured settlement payments is in the best interest of the annuity holder.
Why May Someone Have to Sell?
Once again, there are lots of circumstances that require someone to market structured settlement payments, however the most typical reasons tend to be the following:
1) Spend the cash on medical expenses
2) Prevent their house from being taken by the bank
3) Pay delinquent invoices
4) Spend cash on legal expenses
While these types of expenses represent the most typical reasons with regard to selling, it is essential for the annuity owner to represent compelling reasons behind selling the actual annuity structured payments in order for them to get a deal approved. Approved, yes, for every structured settlement transaction the annuity holder must follow particular rules to get the deal approved. In the late 1990s, each deal was completed simply by having the actual payments directed to that company to whom was prepared to purchase them. However, through the national statute devised in year 2002, the procedure for promoting payments transformed significantly. What transformed was that every transaction should be approved by way of a judge in each state that the annuity holder resides. The judge will have to determine how the sale from the structured settlement payments is within the greatest interest of the annuity holder. This was a welcomed change as it ensured the annuity holder of not being taken advantage of by poor companies.
What is a Dire Need?
Dire need is unquestionably a subjective requirement. Let’s say a household of 4 is residing in a 2 bedroom condo and they are running low on space. They could find a house that suits their room needs far better. Not only would a bigger house be better space for the family, the home loan payment could be a lot less than the monthly rent they are paying to a landlord.
Although buying a house isn’t a dire need for selling their structured settlement as the condo had been OK to house the family, a judge would probably look at a situation such as this and approve it. Most likely the judge would approve of this being in the best interest for the family to maneuver from the apartment and right into a home of their own. This family will have to sell their own structured settlement payments to boost the cash they have in order to make a deposit on the house. Unfortunately, the times of 100% home funding are no longer, so a large deposit on the home is essential.
While there are lots of valid causes for structured settlement annuity holders to market structured settlement payments, it is necessary to have a dire need to ensure the transaction will be approved. However, there’s also many other explanations why someone may sell their own annuity in which a judge would approve. Talk to a structured settlement purchaser that will help you figure out whether you are able to sell your annuities.