Do not be surprised by the discount value of your structured settlement payment. Due to the eroding value of money over time from inflation, and the power of compound interest were that money to be invested, the value of an up-front payment will be much lower than the total value of your settlement payments. As a general rule of thumb, the seller of the structured settlement should expect to receive 50% or less of the total value of the settlement payments in the form of a lump-sum payment.
The buyer should be able to provide valid references from previous sellers of structured settlements to ensure that the transaction was handled in a fair manner.
The buyer should be able to walk the seller through the process of selling a structured settlement step by step, and explain what is expected from each party at each step of the process. This information should be obtained up-front before any paperwork is signed.
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