Selling your structured settlement may not be a complicated process and might be worth it, depending on the purpose you have. People have different reasons for selling, such as paying unexpected medical bills, preventing foreclosure of their home, family emergency, or paying off debts.
Whatever the reason, you need to plan well and do sufficient research when looking for a company to sell to. Research and look for testimonials, as some structured settlement companies pay better than others. Having a good reason and goals will help you learn the amount you may need, which determines a lot of other factors.
When looking for a company, ensure they are legit, their services are good, and their rates are favorable to you. In this article, we will explore the documents that are needed to sell your structured settlement payments.
Documents Required
When planning to sell your structural settlement, you need to have proper document organization. This will sometimes require you to have professional help in the search and to guide you through paperwork.
A good factoring company, like We Pay More Funding will guide you on the required documents. However, before you do any paperwork, make sure to read the terms and conditions. Ensure you understand the documents required and avoid presenting those that can later lead you to loss. Some of these documents include the following.
Benefit Verification Letter
You have to pick this letter and present it to the factoring company for verification. The benefit verification letter helps to confirm that you indeed have an annuity and that your payment streams are as you stated. With this letter, they can calculate a quotation.
Authorization Letter
The judge will give an authorization letter to the factoring company or transfer company to show approval of the transaction.
Disclosure Statement
You are required to present the disclosure statement for every structured settlement payment. This way, the factoring company can know the amount you receive and the amount they can expect to receive.
Purchase and Sale Agreement
When making the sale, you must sign a purchase and sale agreement with the factoring company. This sets the rules and obligations of both you as the seller and the factoring company as the buyer concerning the structured settlement, which is perceived as assets. When signing, you can consider other documents to be recorded and executed, such as the deed of trust.
Statement of Independent Professional Advice
This document proves that you are doing the selling with your consent and not under pressure from the factoring company. It verifies that you indeed have the intention of selling, and you have consulted with an independent lawyer who helps outline the laws and regulations for selling a structured settlement.
Statement of Marital Status
This is to verify that you are married or you have a people that depend on you. When you appear before a judge, they would like to know if your move of selling will affect those that depend on you, and their ruling will be based on that. You will be required to have your spousal consent if you are married to ensure you discussed it together and they agree with the sale.
The Bottom Line
It is vital to have all these documents to ensure the court approves your sale. Ask your attorney to guide you on how to fill some of the documents and ensure the reason for selling acts in your best interest.
