Thinking about selling your Structured Settlement for cash?

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GunnyGene

Hawkeye
Joined
Nov 23, 2013
Messages
6,397
Don't. There's a lot of these scams that are advertised on TV: "It's my money, I want it now!" Actually what they mean is: "It's your money, give it to me now!"

One day soon after, a notary arrived at her house and slid her a 12-page “purchase” agreement. Rose was alone. But she wasn’t worried. She said she spoke to a lawyer named Charles E. Smith on the phone about the contract. She felt confident in what it stated. She was selling some checks in the distant future for some quick money, right?

The reality, however, was substantially different. Rose sold everything to Access Funding — 420 monthly lead checks between 2017 and 2052. They amounted to a total of nearly $574,000 and had a present value of roughly $338,000.

In return, Access Funding paid her less than $63,000.


More: http://www.washingtonpost.com/local/social-issues/how-companies-make-millions-off-lead-poisoned-poor-blacks/2015/08/25/7460c1de-0d8c-11e5-9726-49d6fa26a8c6_story.html
 

Fox Mike

Hawkeye
Joined
Nov 17, 2009
Messages
9,984
As bad as the 'reverse mortgage' ads. If they only told the entire story.
 

vito

Hunter
Joined
Jan 2, 2005
Messages
2,719
"A fool and his money are soon parted." I never cease to be amazed at the foolishness of some people. Even for the fiscally ignorant, you would think that they would have the sense to talk to someone other than a representative of the company wanting their structured settlement. I guess the folks who fall for these scams are the same ones who send $500 "good faith money" to the Nigerian who claims to want to give them $5 million, or the homeowner who is offered a $10,000 new roof for $1,000 but has to pay it upfront for "supplies". When you combine ignorance with desperation I guess you get idiocy.
 

stevemb

Hunter
Joined
Aug 8, 2012
Messages
2,769
Yeah, a structured settlement to keep you from being stupid, but a bypass offered by the morally bankrupt.
 

mohavesam

Hawkeye
Joined
Jan 4, 2004
Messages
5,847
The concept of compound interest escapes most other-wise intelligent Americans. My 8-year old Korean niece can explain it and create an amortization schedule for a 30-year mortgage (resulting in a 16-year reduction in term) in about ten minutes, while watching cartoons.

I can tell you all about how easy it is to make money from fools. Just send me $3.95 for the full information package...
 

stevemb

Hunter
Joined
Aug 8, 2012
Messages
2,769
With no children or possible grand children, a reverse mortgage something for me to consider.
 

Jim Puke

Hunter
Joined
Jul 9, 2013
Messages
3,088
Nothing wrong with a reverse mortgage if you are in the right position.

I have a friend right now that is probably going to help his Mom get one...her house is debt-free and she is taking cancer treatment...needs the income and a place to live. They have looked at everything and the reverse mortgage is by far, the best option that she has.
 

nvbirdman

Blackhawk
Joined
Jun 14, 2002
Messages
721
Back when you could retire at 62 and give up 25% of your social security or continue working until 65 and receive 100%, a friend of mine was wanting to retire. He gave me the standard crap "I've been working all my life", yeah unlike the rest of us, but anyway, the day he turned 62, that was it.
He is now 75, and I think he gave up about four hundred dollars a month. That is thirteen years times twelve months times four hundred dollars. He has so far given up over sixty two thousand dollars.
I wonder how many of us would willingly give up $4800 a year just to avoid working another three years? BTW he was and is in perfect health.
 

ElToro

Single-Sixer
Joined
Oct 11, 2008
Messages
166
My 90 something grandmother took a reverse mortgage a few years ago in order to get the cash she needed to to pay her full time live in nurse aid until she passed away this year at 100. My mom and aunt got a lot less when they sold her home earlier this year but my grandma was able to stay in her home where she had lived for 75years.

Anyone considering selling their structured settlement better get legit financial advice by somebody other the one offering the money.
 

vito

Hunter
Joined
Jan 2, 2005
Messages
2,719
I have kids and grandkids but don't plan on them inheriting my home. Unfortunately for me the equity in my home has mostly evaporated since the housing crisis in 2008, about three years after I bought my home. Seems that I bought it at the peak of the market and probably overpaid at that. Having your home re-assessed in market value lower every year instead of appreciation has wiped out what I had hoped would be equity for the future when I sell, but in the short run it has kept me from seeing increases in my property taxes. I hope that someday in the future I can actually consider a reverse mortgage.
 

rugerguy211

Single-Sixer
Joined
Dec 15, 2013
Messages
401
A friend of mine sold a $1,000,000 lottery ticket to one of those companies.
He got a check for $640,000. I have no idea what the taxes were.
#1. The $640,000, even after taxes, made a significant change in his life.
#2. He was in his 60's at the time and didn't figure he'd be around for 20 years to collect $50,000 per year (also before taxes)
I also have no idea of the specific wording of the ONE page document that he signed, but it basically just stated that he was selling the ticket for a $640,000 one time payment, and that he had no further claim to the ticket, or on the company who bought it from him.
12 pages would have raised a flag with me right away.
 

Bull Barrel

Hunter
Joined
Feb 22, 2008
Messages
3,279
Reverse mortgages are home equity loans in which the loan isn't paid until the owner moves, sells or dies. Since there are no monthly payments the interest is rolledinto the loan and the debt can exceed the value of the home. Not good in a declining market.
 

JFB

Hunter
Joined
Sep 7, 2005
Messages
2,091
Bull Barrel said:
Reverse mortgages are home equity loans in which the loan isn't paid until the owner moves, sells or dies. Since there are no monthly payments the interest is rolledinto the loan and the debt can exceed the value of the home. Not good in a declining market.

As some previous example, I have my parents Home that I do want to sell and when I die, there is no one to inheriet so I might look into RM. by it not being good to the lean holder won't effect me.
 

willk

Blackhawk
Joined
Feb 16, 2009
Messages
557
I totally disagree. Its a great idea to sell your retirement for pennies on the thousands of dollars. Just think what a great time going to the boat (slang for floating gambling casino's that are so prevalent) you will have with the pennies that you got for giving away your future.

Sadly most folks can't wait to get a quick bunch of cash so they can spend it as quickly as possible on wasteful and unnecessary purchases and luxuries.
 

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