STRUCTURED SETTLEMENT CASH NOW GUIDE

Do you have a structured settlement? The structured settlement cash now guide can help you get a cash payment quote. Find out how to - Cash In a Structured Settlement.

> Free Consultation - Get structured settlement help regarding selling your annuity future payments. HAVE A Structured Settlement Purchaser Factoring Representative Contact YOU, this site will forward your questions & requests to an established finance representative/company.

---

Discount Rate

In the beginning, the factoring industry had some relatively high discount rates due to heavy expenses caused by costly litigation battles and limited access to traditional investors. However, once state and federal legislation was enacted, the industry’s interest rates decreased dramatically. There is much confusion with the terminology “discount rate” because the term is used in different ways. The discount rate referred to in a factoring transaction is similar to an interest rate associated with home loans, credit cards and car loans where the interest rate is applied to the payment stream itself. In a factoring transaction, the factoring company knows the payment stream they are going to purchase and applies an interest rate to the payment stream itself and solves for the funding amount, as though it was a loan.

Discount rates from factoring companies to consumers can range anywhere between under 8% up to over 18% but usually average somewhere in the middle (link to a discount rate calculator can be found here). Factoring discount rates can be a bit higher when compared to home loan interest rates, due to the fact the factoring transactions are more of a boutique product for investors opposed to the mainstream collateralized mortgage transactions.

Do you have a structured settlement? The structured settlement cash now guide can help you get a cash payment quote. Find out how to - Cash In a Structured Settlement.

> Free Consultation - Get structured settlement help regarding selling your annuity future payments. HAVE A Structured Settlement Purchaser Factoring Representative Contact YOU, this site will forward your questions & requests to an established finance representative/company.

---

Lump Sum Payment: A lump sum is many times offered instead of payments over time, the both are offered and the person receiving must make a choice. The funds or money of a lump sum settlement offer is always much lower than if periodic payments were made over time. Inflation and present value of money is often a reason to take a lump sum from a settlement or early payments being purchased from an annuity. Lump sums can also be payments from an annuity contract, on a specific date in the future, usually built into a plan to deal with foreseeable requirements such as education, vehicle or other.

Factoring Discount: The factoring discount is the difference between the total undiscounted amount of structured settlement payments being acquired and the total amount paid by the acquirer. Means an amount equal to the excess of the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired.

Do you have a structured settlement? The structured settlement cash now guide can help you get a cash payment quote. Find out how to - Cash In a Structured Settlement.

> Free Consultation - Get structured settlement help regarding selling your annuity future payments. HAVE A Structured Settlement Purchaser Factoring Representative Contact YOU, this site will forward your questions & requests to an established finance representative/company.

---

Use Structured settlement lump sum money for new house down payment and then get $8000 back from Obama tax credit

$8,000 for homebuyers, first-time purchasers get a tax credit windfall if they buy before December.

This was previously done 10 months ago or so under Bush administration. The deal was $7500 tax credit back if a new home purchase was made. This deal had to be paid back over 15 years. The new stimulous package extended this rebate and made it a true rebate (does not have to be paid back). It is increased $500. Now is the time to trade in future settlement payemts for a cash lump sum. This can be used for down payment of a house and then $8000 more money can come your way. What are you waiting for. I am doing this, but i dont own a structured settlement. I had to come up with my down payment from savings.

There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes. This is link to the tax credit IRS form, seems they have not updated at this time the new details. http://www.irs.gov/pub/irs-pdf/f5405.pdf  form 5405 is the form for the home tax credit. I think this will be updated in few days or week to reflect the new credit amount of $8000 and also to remove text of not to payback over 15 years.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision.

the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.

Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.

One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.

Now is the time to get cash now, liquidate your structured settlement, use it for downpayment for a house. Get that tax credit from Obama stimulous that just was signed. The time is January 2009 to December 2009 for the home purchase to qaulify.

Who doesn't need a $8000 check form the government?

Read more at Obama White House stimulous web site page, IRS website or CNN Money tax section

 

Do you have a structured settlement? The structured settlement cash now guide can help you get a cash payment quote. Find out how to - Cash In a Structured Settlement.

> Free Consultation - Get structured settlement help regarding selling your annuity future payments. HAVE A Structured Settlement Purchaser Factoring Representative Contact YOU, this site will forward your questions & requests to an established finance representative/company.

---

Structured Settlements are given mostly to lawsuit winners from injury cases. They are in most cases long term payments in the form of an insurance company annuity. Now there are companies like JG Wentworth -old guy, The Blue Cash Cow company, Peachtree settlement funding -dog ( I think everyone in America has seen these TV commercials) and others that help people get lump sums in exchange for these future payments?

I have read many web posts and people opposing this. However, if a person or family is in trouble and needs money, then this would be heaven sent. We are not talking about people that are in good financial standing. The people trading in the future payments for cash now are in desperate need of money. Now as I read the laws on this, a court must approve this cash payment exchange when a factoring company is doing this. If a judge reviews the situation transaction, and finds it is in the best interest of the annuity owner. Then how can this be bad? Yes, I have read that the annuity holder can lose up to 30% of the long-term value of the payments. However, this is inflation right and the cost to borrow money? This is not too different from credit cards, high-risk loans, or title loans. If someone needs money now and does not want or cannot wait for these payments to save up, and an option like this is available then it is their risk. I am sure a judge would not approve a transaction if it were not good for the injury victim.

So why does this transaction have a bad rap..?    If you were in this position, would you consider trading future payments for lump sum of cash?   How different is this from people going to pawnshops and trading in gold or other valuables for cash. There are no judges in any of these other methods to get cash.
If I were very desperate for money, like out of a job, losing my house, car and the million other things that have to be paid then I would consider this option for sure. I would trade my future payments to get $50,000 now. Even if the long term payments would have added up to $70,000 or the like. I don't understand why many opinions are against this?