What you Need to Know about Structured Settlement Loans
Structured settlement loans offer an individual a new stream of income from a civil case he or she had won or become a beneficiary. There are ads on the internet claiming to offer more than what a structured settlement is, they call it a loan. However, there is no such thing as a structured settlement loan.
WePayMore Funding can help you avoid such advertisement trap and get the most out of your structured settlement money. If you need urgent financial assistance, we will equip you with the right knowledge on how to sell your annuity and settlement payments. We offer hassle-free service, quick, and reliable source of quick cash.
Structured Settlement Loans
Most advertisers would use the term “loan” to attract settlement owners that are in need of emergency cash. However, they do not offer you a loan, what they really want is to buy your settlement a discounted rate. These advertisers are companies that will get your future stream of income at a low-cost.
Again, this is not borrowing money, nor earning interest, and no credit score required, therefore, it is not a loan. You sell a portion of or all of your future payments and no longer receive the income on a regular basis.
Let us simply put it this way, a structured settlement is not a bank account or a loan. The best way to get money from the annuity is to keep up with the payment schedule. You can also sell a part of your settlement or all of it to a reputable factoring company. If a company introduces a structured settlement loan to you, stay away from them.
Collateral equals Asset
When we speak of collateral - we are referring to an asset to secure a loan. If you apply for a loan through a bank, the bank will consider the confidence value they have on your asset, something they can seize if you cannot pay the loan back. However, structured settlements have a tax-free status and restrict the transfer of the annuity. Therefore the bank cannot seize it without filing a legal claim which they will end up not winning.
Structured settlements are awarded to people that have been harmed or wronged. So a structured settlement is a form of compensation rather than an income. Because of this, banks do not accept the structured settlement as a form of collateral for a loan.
There may be a chance where you can use your structured settlement as proof of income when applying for mortgage or house improvements. You can request a document to prove the future stream of income and include previous deposit slips. Some banks may consider this as a form of your ability to make a payment for the requested loan.
WePayMore Funding has helped thousands of customers in selling their annuities and structured settlements for a lump sum of cash that fits their financial needs. Contact us now to learn more about our services.Structured Settlement Loans