Have you ever wondered what happens after you sell your structured settlement?
So you receive a structured settlement or lottery pay out, and later you decide to sell all or a portion of it for a lump-sum payment. But where does the money come from? Why do these companies want to purchase my payments? Why cant i get my payments back if i change my mind?
These are all question people have had at some point when selling their payment streams.They are valid questions that are typically hard to answer and or explain. Until Recently that is when i found this article, below. It is a prime example of what happens after the sale of a structured settlement or lottery payment, and should give a seller a good insight into just why they do need a Independent Professional Advisor. These purchasers are in a position to make a lot of money off each transfer, and although the courts are supposed to protect the best interests of the seller.It is a profit driven transaction and should be handled as such. You would not buy a house with out having a qualified real estate agent protecting your asset, so why would you not have a structured settlement attorney acting as your IPA to protect you and your payment stream
The J.G. Wentworth Company® Announces $161.3 Million Structured Settlement, Lottery and Annuity Payments Fixed Rate Asset Sale
February 23, 2016 02:00 PM Eastern Standard TimeRADNOR, Pa.--(BUSINESS WIRE)--The J.G. Wentworth Company® (“J.G. Wentworth” or the “Company”) (NYSE: JGW), a diversified consumer financial services company, today announced that it has sold, through a private placement, up to $161.3 million of structured settlement, lottery and annuity payment streams. The assets are payments from pools of rights arising under court ordered structured settlement payments, court ordered lottery payments, and annuity payment purchase contracts primarily originated by the J.G. Wentworth and Peachtree Financial Solutions companies.
“This private placement provides comparable economics to our last securitization and is an attractive avenue to sell assets to institutional investors in addition to our securitization platform”
Tweet this“This private placement provides comparable economics to our last securitization and is an attractive avenue to sell assets to institutional investors in addition to our securitization platform,” said Scott Stevens, Executive Vice President and Chief Financial Officer, J.G. Wentworth. “This transaction is consistent with our strategy to diversify our funding platform and represents an alternative funding source to our traditional 144A asset-backed securitization transactions,” noted Stevens. “Our intention going forward is to access multiple funding sources including our traditional 144A securitization transactions depending on market conditions and underlying economics. This placement continues to demonstrate our ability to access the financial markets with an offering size and product performance that is valued by investors.”
Stewart A. Stockdale, Chief Executive Officer, J.G. Wentworth added, “J.G. Wentworth remains committed to expanding our relationships within the institutional investment community to increase both the depth and breadth of our funding platform.”
This private placement totals $161.3 million and is comprised of two asset pools. The first pool consisted of $91.3 million which closed on February 18, 2016 and generated over $26 million of net cash after paying off warehouse facilities. The second pool of up to $70 million is scheduled to close in the Second Quarter of this year and will generate additional cash at that time.
Certain statements in this press release constitute “forward-looking statements.” All statements, other than statements of historical fact, are forward-looking statements. You can identify such statements because they contain words such as ‘‘plans,’’ ‘‘expects,’’ or ‘‘does expect,’’ ‘‘budget,’’ ‘‘forecasts,’’ ‘‘anticipates,’’ or ‘‘does not anticipate,’’ ‘‘believes,’’ ‘‘intends,’’ and similar expressions or statements that certain actions, events or results ‘‘may,’’ ‘‘could,’’ ‘‘would,’’ ‘‘might,’’ or ‘‘will,’’ be taken, occur or be achieved. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
Consideration should be given to the areas of risk set forth under the heading “Risk Factors” in our filings with the Security and Exchange Commission (the “SEC”), including our registration statement on Form S-1 for our initial public offering, as filed with and declared effective by the SEC on November 8, 2013, and in our other filings made from time to time, in connection with considering any forward-looking statements that may be made by us and our business generally. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.
About The J.G. Wentworth Company®
The J.G. Wentworth Company® is a diversified consumer financial services company. The Company is focused on providing direct-to-consumer access to financing needs through a variety of solutions, including: mortgage lending and refinancing, personal lending, structured settlements payment purchasing, and prepaid cards. Through the J.G. Wentworth, Peachtree Financial Solutions, and Olive Branch Funding brands, the Company is the leading purchaser of structured settlement payments.
Mortgage loans are offered by J.G. Wentworth Home Lending, LLC NMLS ID # 2925 (www.nmlsconsumeraccess.org), 3350 Commission Court, Woodbridge, VA 22192; 888-349-3773.
For more information about The J.G. Wentworth Company®, visit www.jgw.com or use the information provided below.
This announcement shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of our securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful, prior to registration or qualification under the securities laws of any such state or jurisdiction.
Many people receiving structured settlement payments face pressing financial needs, which cause them to consider selling their annuity for a lump sum in cash. Sounds simple, but the process is actually complex, time-consuming and fraught with pitfalls for unwary and uninformed consumers. If deceptive advertising by companies who profit from these transactions has lulled you into thinking you'll get all your money instantly, STOP! and consider these little-known facts:
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1. Requires a Court to approve the transaction;
2. Will take up to 90 or more days to complete the process; and
3. The final "net" amount received is far less than the "face value" of the annuity.
Because a person who sells a structured settlement annuity will receive a deeply discounted amount of money, it is critical to be as informed as possible before making the decision to sell. Plus, as not all transactions are approved by a Court, there's no guarantee your sale will be approved as a court must first find that the sale is in your best interests. Mr. Ahtirski knows the Court system and also knows how to help sellers of structured settlements seek to negotiate a higher purchase price from the various companies that buy structured settlements.
Since 1994, attorney Eugene Ahtirski has been an active participant in almost every area of the secondary market factoring industry pertaining to the sale of future payment streams and has personally participated in thousands of court approved transfers. Mr. Ahtirski experience extends to various other forms of payment streams as well besides structured settlement payment rights such as casino and lottery payouts, and entertainment industry residuals.
Contact a Structured Settlement Attorney who can accurately evaluate your structured settlement and provide Independent Professional Advice
You need not settle for small payments over a lengthy period of time. Get the maximum present value for your full recovery by calling the Law Offices of Eugene Ahtirski at or contacting the firm online.
Law Offices of Eugene Ahtirski are located in Van Nuys and serve clients in California with Associates across the United States.