A report in todays Wall Street Journal sheds some light on the secondary market for factored structured settlements.
A factored structured settlement is an annuity (usually the paid as a settlement on a lawsuit) that pays a predetermined stream of income, often monthly over the course of many years. These annuities are typically issued by insurers that are unlikely to go bust, like AIG, John Hancock, MetLife and New York Life.
Sometimes the recipient decides to sell the stream of payments in order to meet current cash flow needs. Investors that decide to purchase these annuities in the secondary market are seeking the hi-yields – often 6-7 percent annually.
What are the potential dangers in buying a structured settlement.
First is the lack of liquidity. There is no easy market to liquidate secondary-market annuity; the firm that sold it to you usually will not buy it back.
As always – there is also the risk of fraud.
“If you’re going to deploy any real capital, you need to do some real homework,” says Jim Terlizzi, chief executive of Peachtree Financial Solutions, a structured-settlement packaging firm in Boynton Beach, Fla., that sells exclusively to institutional investors. You will need to verify that the documents signed by the original seller are valid, that the court order originates in the proper jurisdiction and that your contract fulfills all the state and federal requirements. You should also call the annuity issuer and the company that services the annuity payments to confirm that you are officially recorded as the new recipient.
If you are willing to stand the illiquidity and are able to do the homework, then you can lock in big returns investing in these instruments. For most people, they do not make sense but for the sophisticated investor – they pay a premium.
Posts Tagged ‘Annuity’
Buying secondary market settlements for yield
Thursday, July 29th, 2010Unemployment and the Jobs Picture
Friday, May 7th, 2010WASHINGTON As reported in (MarketWatch) – The number of first-time applications for state unemployment benefits fell by 7,000 last week to a seasonally adjusted 444,000, the Labor Department reported Thursday. Initial claims fell for the third straight week after filings bumped higher in early April due to administrative backlogs and seasonal distortions around the Easter holiday and the end of the quarter.
The report comes one day ahead of the monthly employment report for April. According to Economists are forecasting modest job gains of about 185,000, including 100,000 or so temporary workers at the Census Bureau. The jobless claims report shows that the level of layoffs — while down from the peak a year ago — is too high to be consistent with robust job growth. This indicates that the recovery is tentative and may be short lived. Can the economy really recover without robust job growth. What will happen when the stimulus spending slows down. The number of people receiving state benefits fell by 59,000 to a seasonally adjusted 4.59 million in the week ending April 24. The number collecting state benefits is down about 24% compared with a year ago.
Serving these: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New
Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah,
Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and
Wyoming. AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS,
KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NC, ND, NE, NV, NH, NJ, NM,
NY,
OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WV&WY;.
Are You involved in a Lawsuit? http://www.lawsuitcashadvance.biz
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99% of plaintiffs involved in Lawsuits don’t realize they can get Cash Advance before
their case settles.
Lawsuit Cash Advance Associates can provide Cash Advance to you before your claim is
resolved. This is also called as Non-Recourse Lawsuit Loan, Legal Loan, Litigation
Funding, Lawsuit Money, Lawsuit Cash Advance and Lawsuit Funding.You pay back
only if you win or settle the case. You pay back nothing if you lose the case.
Our Lawsuit Loan & Lawsuit Funding programs provide you with IMMEDIATE CASH
to give you and your attorney time to negotiate a LARGER CASH settlement!
The process to get Lawsuit Funding or Lawsuit Loan is Fast, Simple & FREE!
1. Fast Approval.
2. No Up-Front Fees.
3. No Credit or Bad Credit is OK.
4. No Employment Requirement
5. No payment until your case settles, Owe us NOTHING if you lose your lawsuit.
6. All information is confidential.
Lawsuit Cash Advance Associates offers No Risk Lawsuit Funding & Lawsuit Loans on
cases such as:
- Auto Accidents, Personal Injury, Pedestrian injury any Type.
- Passenger Injuries, Boating Accidents.
- Slip/Trip & Fall Cases, Burn Injuries
- Employment Discrimination, Wrongful Termination, Sexual Harassment.
- Malpractice: Medical, Legal
- Medical Malpractice- Wrongful Death, Birth Injury, Failure to Diagnosis, Medication
Errors.
- Nursing Home Abuses
- Construction & Gen. Negligence (Dog bite, Homeowner etc.)
- Judgments, Verdicts, Appeals.
- Premises Liability.
- Mesothelioma/Asbestos
- Pharmaceutical Litigation: Zyprexa, Fen-Phen, Vioxx etc.
- Faulty Products: Guidant, Medtronic Leads, Ortho Evra etc.
- Police Misconduct/Brutality etc.
- Wrongful Arrest/ Imprisonment.
- Wrongful Death.
- Worker Compensation cases (not in all states).
AND MANY MORE…..
Lawsuit Cash Advance Associates also offers :
- Inheritance Lawsuit Funding,
- Commercial Litigation Funding,
- Law Firm Loans and Attorney’ Funding.
Our Lawsuit Loan Funding services are NATIOWIDE.
The process is Fast, Simple & FREE!
Call TODAY for a FREE Confidential Consultation & Application:
1-(877) 390-5522
For Quick Process, Please Complete Our Free Application on our Website
The role of Fannie and Freddie in the Housing Meltdown
Monday, May 3rd, 2010Many conservative critics say the government helped to enable the financial crisis through its efforts to increase home ownership, including the role of Fannie Mae and Freddie Mac in buying mortgage loans to make more money available for lending. The companies are now owned by the government after incurring enormous losses on loans that borrowers could not afford to repay. In spite of this well known fact that Fannie and Freddie „s role in the markets enabled a grand part of the over-extension of credit to home buyers – the government has pledged unlimited support to keep these huge companies above water.
As reported in the NY Times -
Lawrence J. White, a finance professor at New York University, said it made no sense to overhaul financial regulation without addressing the future of federal housing policy. He said he was trying to find the strongest possible words to describe the omission of Fannie Mae and Freddie Mac from the legislation.
“It‟s outrageous,” he finally said.
Republicans have repeatedly criticized the administration for advancing legislation that does not address the companies‟ future. The Obama administration says drafting a new housing policy is on its agenda for next year.
Other critics warn that the proposed legislation would insert the government deeply into the financial markets, creating new distortions and seeding future crises. They say the focus of financial reform should instead be on increased transparency.
Andrew Redleaf and Richard Vigilante, hedge fund managers who started warning investors in 2006 that a housing crisis was inevitable, proposed a minimalist version of reform in their recent book “Panic.” They want to require all financial institutions, including investment banks and hedge funds like their own, to disclose, at least once a week, every position in tradable securities.
Serving these: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New
Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah,
Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and
Wyoming. AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS,
KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NC, ND, NE, NV, NH, NJ, NM,
NY,
OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WV&WY;.
Are You involved in a Lawsuit? http://www.lawsuitcashadvance.biz
Need Cash Now? $500 to $500,000 at the lowest rates Call Now 877-390-5522
GET CASH NOW Before Your Lawsuit Settles…and Owe Us Nothing If You Lose!
99% of plaintiffs involved in Lawsuits don’t realize they can get Cash Advance before
their case settles.
Lawsuit Cash Advance Associates can provide Cash Advance to you before your claim is
resolved. This is also called as Non-Recourse Lawsuit Loan, Legal Loan, Litigation
Funding, Lawsuit Money, Lawsuit Cash Advance and Lawsuit Funding.You pay back
only if you win or settle the case. You pay back nothing if you lose the case.
Our Lawsuit Loan & Lawsuit Funding programs provide you with IMMEDIATE CASH
to give you and your attorney time to negotiate a LARGER CASH settlement!
The process to get Lawsuit Funding or Lawsuit Loan is Fast, Simple & FREE!
1. Fast Approval.
2. No Up-Front Fees.
3. No Credit or Bad Credit is OK.
4. No Employment Requirement
5. No payment until your case settles, Owe us NOTHING if you lose your lawsuit.
6. All information is confidential.
Lawsuit Cash Advance Associates offers No Risk Lawsuit Funding & Lawsuit Loans on
cases such as:
- Auto Accidents, Personal Injury, Pedestrian injury any Type.
- Passenger Injuries, Boating Accidents.
- Slip/Trip & Fall Cases, Burn Injuries
- Employment Discrimination, Wrongful Termination, Sexual Harassment.
- Malpractice: Medical, Legal
- Medical Malpractice- Wrongful Death, Birth Injury, Failure to Diagnosis, Medication
Errors.
- Nursing Home Abuses
- Construction & Gen. Negligence (Dog bite, Homeowner etc.)
- Judgments, Verdicts, Appeals.
- Premises Liability.
- Mesothelioma/Asbestos
- Pharmaceutical Litigation: Zyprexa, Fen-Phen, Vioxx etc.
- Faulty Products: Guidant, Medtronic Leads, Ortho Evra etc.
- Police Misconduct/Brutality etc.
- Wrongful Arrest/ Imprisonment.
- Wrongful Death.
- Worker Compensation cases (not in all states).
AND MANY MORE…..
Lawsuit Cash Advance Associates also offers :
- Inheritance Lawsuit Funding,
- Commercial Litigation Funding,
- Law Firm Loans and Attorney’ Funding.
Our Lawsuit Loan Funding services are NATIOWIDE.
The process is Fast, Simple & FREE!
Call TODAY for a FREE Confidential Consultation & Application:
1-(877) 390-5522
For Quick Process, Please Complete Our Free Application on our Website.
Foreclosure Spring 2010
Monday, April 26th, 2010In the first quarter of 2010, there were 930,000 foreclosure filings — an increase of 7 percent from the previous quarter and 16 percent from the first three months of 2009, according to recent data from RealtyTrac, an online marketer of foreclosed properties. These numbers seem to indicate that the foreclosure crises is nowhere near ending and will probably continue for the next 2-3 years.
The Obama Administration’s effort in assisting the troubled housing market has a stated goal of helping four million borrowers by the end of 2012. While this will only mute the pain for millions of homeowners facing foreclosure – even this modest goal seems unlikely to be realized.
Recently JPMorgan Chase and Wells Fargo told a Congressional panel that they have reservations about the administration’s latest foreclosure-prevention plan. Announced this spring the program calls for lenders to modify troubled mortgages by cutting the loan principal, which restores some equity to borrowers while lowering the payment. Bankers are loath to embrace this type of program because it forces banks to recognize losses on loans in the near term instead of dragging the process over several years.
Independent observers have also questioned the efficiency of prolonging the mis-allocation of additional both labor and capital to the real estate market. This market obviously became bloated in the last decade and many observers have noted that the move from owning a home to renting simply makes sense as the labor market must be more mobile to quickly re-adjust to the current economic conditions. This train of thought reasons that those seeking work have an easier time making the adjustments to move toward it if they are not tied to owning a home.
The dissent on interest rates at the Federal Reserve
Friday, April 23rd, 2010Within the Federal Reserve there is a growing difference of opinion on how the ultra low interest rates supported by the Fed Chairman Ben Bernanke will affect the economy in the near to mid term. The Fed has been assisting the recapitalization of the banking system by allowing the major banks to borrow at practically zero interest rate and then leveraging that free cash and consequently making a killing – all at the potential expense of the of the taxpaying public. The fear is that this can stoke serious inflation or potentially create another bubble followed by a meltdown. In the most recent Economist the following blurb outlines the dissention brewing at the Fed.
Economist:
The most vocal dissident is Thomas Hoenig, president of the Federal Reserve Bank of Kansas City and the Fed’s longest-serving policymaker, who has twice formally objected to the Fed’s “extended period” language. That commitment plus zero rates, he explained on April 7th, lead “banks and investors to search for yield… take on additional risk [and] increase leverage”. He argued the Fed should soon raise rates to 1% to “end the borrowing subsidy”.
The next day Narayana Kocherlakota, president of the Minneapolis Fed, voiced a different concern: that the excess bank reserves created by the Fed’s MBS purchases create the potential for high inflation. He advocated selling $15 billion-25 billion of MBS a month, which would clear the Fed’s inventory in five years instead of the 30 it would take for the bonds to mature.
These policy decisions by the Fed affect the average citizen. In a period of stagnating wages – a rush of inflation would cripple the buying power of the average American. In addition savers have been punished by low interest rates all in the interest of re-capitalizing the banks and keeping the bonus party going. Ordinary Americans are now turning new sources of capital to finance their shaky financial picture. Lawsuits, annuities, life insurance policies and structured settlements are often sold to produce immediate cash.
When you are approved for pre settlement funding for a catastrophic injury lawsuit – you
only repay the pre settlement advance if you are awarded a settlement. There is no risk to
you with this non-recourse lawsuit cash advance. Funding of this nature is known by
terms that include, lawsuit cash advances, legal funding, settlement funding, legal loans
etc. This will allow you the time to get the settlement that you deserve – fill out the
Quick application or Call Now. (877)-885-4922
Serving these: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New
Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah,
Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and
Wyoming. AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS,
KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NC, ND, NE, NV, NH, NJ, NM,
NY,
OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WV&WY;.
Are You involved in a Lawsuit? http://www.lawsuitcashadvance.biz
Need Cash Now? $500 to $500,000 at the lowest rates Call Now 877-390-5522
GET CASH NOW Before Your Lawsuit Settles…and Owe Us Nothing If You Lose!
99% of plaintiffs involved in Lawsuits don’t realize they can get Cash Advance before
their case settles.
Lawsuit Cash Advance Associates can provide Cash Advance to you before your claim is
resolved. This is also called as Non-Recourse Lawsuit Loan, Legal Loan, Litigation
Funding, Lawsuit Money, Lawsuit Cash Advance and Lawsuit Funding.You pay back
only if you win or settle the case. You pay back nothing if you lose the case.
Our Lawsuit Loan & Lawsuit Funding programs provide you with IMMEDIATE CASH
to give you and your attorney time to negotiate a LARGER CASH settlement!
The process to get Lawsuit Funding or Lawsuit Loan is Fast, Simple & FREE!
1. Fast Approval.
2. No Up-Front Fees.
3. No Credit or Bad Credit is OK.
4. No Employment Requirement
5. No payment until your case settles, Owe us NOTHING if you lose your lawsuit.
6. All information is confidential.
Lawsuit Cash Advance Associates offers No Risk Lawsuit Funding & Lawsuit Loans on
cases such as:
- Auto Accidents, Personal Injury, Pedestrian injury any Type.
- Passenger Injuries, Boating Accidents.
- Slip/Trip & Fall Cases, Burn Injuries
- Employment Discrimination, Wrongful Termination, Sexual Harassment.
- Malpractice: Medical, Legal
- Medical Malpractice- Wrongful Death, Birth Injury, Failure to Diagnosis, Medication
Errors.
- Nursing Home Abuses
- Construction & Gen. Negligence (Dog bite, Homeowner etc.)
- Judgments, Verdicts, Appeals.
- Premises Liability.
- Mesothelioma/Asbestos
- Pharmaceutical Litigation: Zyprexa, Fen-Phen, Vioxx etc.
- Faulty Products: Guidant, Medtronic Leads, Ortho Evra etc.
- Police Misconduct/Brutality etc.
- Wrongful Arrest/ Imprisonment.
- Wrongful Death.
- Worker Compensation cases (not in all states).
AND MANY MORE…..
Lawsuit Cash Advance Associates also offers :
- Inheritance Lawsuit Funding,
- Commercial Litigation Funding,
- Law Firm Loans and Attorney’ Funding.
Our Lawsuit Loan Funding services are NATIOWIDE.
The process is Fast, Simple & FREE!
Call TODAY for a FREE Confidential Consultation & Application:
1-(877) 390-5522
For Quick Process, Please Complete Our Free Application on our Website.
What is Right for me?
Tuesday, March 9th, 2010Structured Settlements have the advantage of stretching out the payments over a pre determined period of time, however, a substantial downside to structured settlements comes from their inherent inflexibility. To take advantage of the tax benefits allotted to defendants who choose to settle cases using structured settlements, the periodic payments must be set up to meet basic requirements. Most importantly, the payments must be fixed and cannot be accelerated, deferred, increased or decreased by the recipient. Over time the needs of the structured settlement recipients often radically change and in turn require the liquidation of payments for upfront cash. SMART Settlement Funding assists recipients of payment streams that face immediate cash needs.
Overview
Monday, March 1st, 2010Structured Settlements
Thursday, February 25th, 2010Structured Settlements
Structured settlements are often granted to satisfy a casualty claim involving periodic annuity payments over a period of time, rather than in one lump sum cash payment. There are certain advantages to a claimant under a structured settlement, including favorable tax treatment of interest under the Internal Revenue Code, that are not present under a lump sum cash settlement. Structured settlements are intended to stretch out the payments over a period of time so the beneficiary does not run the risk of burning though the money. Often times the recipients of structured settlements are often minors or those that require medical treatment for an extended period of time. There are times when the liquidation of a structured settlement become a choice for a beneficiary that requires a lump sum payment to meet certain expenses or life goals. Examples include funding of education, medical treatment, job loss, relocation or other unexpected event. Another reason to convert the payments into a lump sum is when the need for life care is no longer required or is satisfied by another revenue source.
Annuity
Thursday, February 25th, 2010The process to sell annuity or structured settlement payments starts by getting a quote of a fair price for your stream of payments. Call us now to get the process started. Here is a list of the documents that will we may need to review. For your case some of these documents may not apply. Call us to discuss your individual situation.
1. Completed copy of application
2. The Annuity Policy
3. The Release or Settlement Agreement
4. A copy of your most recent Check Stub or a bank statement if your checks come by direct deposit.
5. Documentation that describes any modifications or revisions that alter the original settlement agreement.
6. If another party has a claim on the settlement such as your marital partner or children – please provide the identity and supporting documentation.
Your annuity specialist will help you through this process.
The closing process flows as follows:
* Initial submission of settlement documentation
* Disclosure Statement
* Closing documentation
* Attorney Estopel letter
* Petition for Court Order filed
* Court order is obtained
* Insurance Company acknowledges assignment