Structured Settlement Purchasing companies see more action than the flat lands of the current stock market
As the money crunch hits people nationwide and a record number of households are facing foreclosure, trading cash flows is a hot market trend. Future dollar values undeterminable as rate of inflation eats away at a stable economy now facing a recession.
NEW YORK (CNNMoney.com) — There is little debate about whether the U.S. economy is in a recession. The question is how painful and long the downturn will be.
According to a quote taken from an article by Chris Isadore, senior writer for CNNMoney.com -”It seems to me the big wild card for the economy would be a sharp decline in the dollar, which in turn would cause U.S. inflation to spike up,” said Paul Kasriel, chief economist with Northern Trust.
How does today’s economy translate into the significant increase of structured settlement and annuity payment purchasing?
More and more individuals are using cash they receive by selling future payments from structured settlements, lotteries, and annuities to pay rising debt from consumer credit spending and stave off home foreclosures.
Foreclosure filings jumped 57% in March compared with the same month last year and rose 5% versus February, as the nation’s housing market continues to deteriorate
The increased competition between settlement purchasing and factoring companies like J.G. Wentworth or Woodbridge Investments have made it the optimum environment for individuals to get the highest amount of money possible for their future settlement or annuity payments.
Tightened borrowing policies on loans from major banks and mortgage lenders are making it even harder for the average first time home buyer. The large lump sum a person could receive from the sale of future settlement or annuity payments can be used as a downpayment or a repayment on a loan.
Although most major lenders are willing to expand the perimeters they normally operate within to resolve a mortgage delinquency, it is evident that there is a cash crisis in most households living pay check to pay check.
Nationwide people are turning to companies who will buy their future payments from a settlement or annuity as a means to not only get a head, but to survive.
There is an estimated value of nearly 2 billion dollars in settlement cases sold as a cash flow crop every year, and it is not showing any signs of slowing down.
NEW YORK (AP) — Banks, hit hard by the recent credit crisis, are struggling for cash.
Deutsche Bank AG said Tuesday that it expects first-quarter writedowns of $4 billion due to “significantly more challenging” market conditions triggered by the U.S. subprime collapse.
Germany’s largest bank warned last week that it may have been harder hit by the crisis than it had previously announced, with possible losses in some lending divisions.
Investors looking to long term dividends see greater potential in gain from securitized funds, as more Americans cash out for a lump sum now.
“If the market is poised to fall further, as I suspect, cash is just about the only defense.” writes Tim Middleton
Sentiments such as these give full swing to why Americans all over are realizing that cash in hand now is so very important. Major competitors in the structured settlement purchasing and factoring industry like Woodbridge Investments, JG Wentworth, and Peachtree Funding are giving people the pwer to tap into their liquid assets instead of waiting on a depreciative amount that will come in the future.
