Cash For A Structured Settlement Without Getting Scammed

With as much money that is being changed hands during an annuity payment buyout, it's easy to think that you are being scammed.  Cash for a structured settlement involves finding an investor to buy your annuity payments that will pay you a fair amount.  How do you know what fair is?  Each deal is unique and terms are different so it's very difficult to say watch for X and Y, and don't sign if it's Z.  What we can do is show you some warning signs and some systems that are in place that will help prevent someone taking advantage of you.

Before signing up with any company to get cash for your structured settlement be sure to get a list of verifiable references.  Treat this like you are interviewing an attorney or a live-in nanny.  If you get an uneasy feeling from them, they aren't the one.  Your instincts can be the biggest giveaway that the deal is a scam.  Do not hesitate to walk away.  There are hundreds of investment companies that would love your business so it's absolutely appropriate to be selective.

Disclosure:  I do not work for any investment company, nor endorse any one in particular.  I'm working from my own experience to provide third-party recommendations.

In most states where it's legal to get cash for structured settlements the offer becomes a legal matter.  You and the investment company go in front of a judge to present the offer that is being proposed.  The judge will approve the offer if it can be deemed as fair for both parties in his/her opinion.  If the judge does not approve the offer, it becomes the investment company's responsibility to draft a new proposal.  The first red flag that you are working with a shady company is if they attempt to make you pay for the offer to be redrafted.  That is normally their job, and is a part of working with you.

Getting cash for your structured settlement should be easy.  You sign your payments over to them and they cut you a huge check.  Unfortunately, this isn't always the case.  Here are a few things to watch out for.

Don't deal with personal investors.  If you are approached by an individual who wants to buy your annuity payments from you it is probably a scam, or you will be offered an extremely low payment for your annuity.  Investment companies that pay cash for structured settlements make their money in the volume of annuities they have.  It would be very hard for an individual investor to have that kind of cash on hand to turn a profit on buying annuity payments.

Don't deal with investors that suggest you save time by skipping the legal approval.  This is certainly illegal, but it's also opening the door for you to get ripped off.  If you are working this out without your own financial advisor or legal representation, the judge will be the only thing that protects you from getting scammed.

Do trust your gut.  If you feel like you're being taken advantage of, you probably are.  Ask lots of questions and do lots of research about the company before signing anything.  Your instincts should be able to tell you if something isn't right.  Don't hesitate to walk away from an offer, it can save you thousands of dollars.

It's extremely important to research numerous investment companies before you sell you structured settlement for cash.  A simple Google search will turn up hundreds of them for you research.  Keep in mind that many of the sites that turn up are fronts for companies that sell leads to big investment firms.  You will usually fill out a form with your contact information and it will be sold as a lead.  Expect to be called numerous times from each company.  Dig up as much dirt about each company before filling out the contact box to save yourself the headache of dealing with telemarketers.

Research lots, learn lots, and you will save a ton of money and won't get scammed.