What to Look for in Your Purchasing Company
If you have decided to sell your lottery annuity, you need to know how to find a reputable company. There are many purchasing companies in the market. Before you decide to work with a company, you should check whether they are certified and licensed. It is also good to check how long the company has been in business.
In the process of requesting a quote, make sure that it is clear how long the quote is valid for and whether there are additional fees. Pay careful attention to how the buying company’s representatives treat you during the quote process. Are you given time to ask questions? Do the company’s representatives demonstrate they want you to fully and clearly understand the process? These are the signs of a company that puts the customer first. Some companies rely on putting an enormous amount of pressure on potential annuity sellers, but you do not want to work with one of these companies. Remember – you are in charge!
Why Your Quote is Less than the Total Annuity Value
It is important to know that when you sell your payments you will not be receiving the full amount of your annuity. This is the price that you pay for getting access to your cash now. The amount you receive less than the value of your annuity payments is called the discount rate. Unlike when you are shopping at a sale, you want to look for the lowest possible discount rate. A good buyer will be completely transparent about their quote and clearly show the discount rate and any other fees involved in the transaction.
Final Step – Court Approval
When you are ready to accept a quote from a buyer, you will officially accept an offer from them. The buyer should then support you to file for court approval of the sale. This will require a court appearance from you, the seller, during which the judge will review the terms of the sale and make sure that the transaction is done in a manner which is in your best interest.