Even though payments on a structured settlement have been coming in, there is a good possibility that you’re going to need to borrow against it right away. For many people, this is uncharted territory. Most men and women don’t know what to do in this type of scenario or how to go about securing this type of loan.
Navigating the Water
When it comes to structured settlement companies, each will do its best to convince you that they can get you a loan on your settlement. This is true. They all can but not all are the same when it comes to different aspects of how they get that loan.
Some things to look at when considering structured settlement companies include:
- Cost – While all companies will tell you they can get you the most money, in reality, some of the companies will charge you more for taking a loan than others. Each company has their own means and ways to get you the loan but in the end everything has to be approved so they just find extra ways to make more money off of you while doing your paperwork.
- Licensed – When researching companies to hand your settlement loan procedure, check if they are licensed to handle these in your state. Sometimes certain companies will look legitimate but they cannot do specific functions within some states per state law and licensing. If you decide to go with one of these companies, your loan could be denied quickly and even penalized or fined.
- Time – Getting a structured settlement loan isn’t something that can happen overnight or in the matter of a couple days like a traditional loan. The paperwork is much more tedious and the time it takes can range from a couple weeks to a couple months. Paperwork must be filed by the structured settlement companies and then it’s back and forth from the courthouse to the loan company for you. Once the paperwork is finished, you still have to go to court to discuss this with a judge.
- Judges Hands – You can do all the paperwork and get everything taken care of properly, but when it comes down to it, the actual loan has to approved by a judge. In many cases the judge will grant the loan, but on rare cases it can also be denied.
- Understand Your Contract – The structured settlement contract can have a clause that states that either a loan can be taken against it or a set amount can be taken and the settlement still be valid and not broken. Reading the contract and having a certified financial person look it over and explain the advantages and disadvantages of a loan is highly recommended.
You Have Options
The hardest part of getting structured settlement loan for many is the amount of time that it takes and then if everything has been done correctly. As stated above, judges don’t typically deny a loan without logic, but every now and then will look at all factors and feel that there is no true need for a loan.
Your options regarding structured settlement companies is quite vast and the best thing is to research as many as possible before making a decision. Talk to anyone you might know who has used a company for a settlement loan and see what they have to say. Do they recommend them? Do they wish they had chosen another company to represent them? Why did they choose this company? These are three very good questions to ask. They can assist you with your search for a company that will be able to help secure a loan successfully.Call Us Today
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