Questions to ask and items to know about any potential structured settlement buyer:
1) How long have they been in business?
2) Is their contact and business information verifiable?
3) Are they bonded or insured?
4) What is their underwriting criteria?
5) How is their Better Business Bureau rating?
6) Do they handle your type of structured settlement?
7) How many structured settlement purchases do they do a year?
8) Are they familiar with your local courts and state practices?
9) What is their success rate in obtaining structure settlement requests in your state?
10) How will they price your structured settlement?
11) What discount rate did they use in the quote?
12) Can they provide a time table for the process?
13) Do they use multiple financing sources for your quote?
14) Are they a principal or a broker?
15) Are they associated or member of a larger corporation?
16) Do they have a privacy policy?
17) Are they members of trade and professional organizations?
18) Are they professional in all communications and business presence?
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
For more information, please go to MyNoteMarket.com
Written by Johnny Polo, CEO & Founder of PegasusPolo Ventures, LLC
PegasusPolo.com
Wednesday, November 28, 2007
Friday, November 16, 2007
A Guide to Getting a Reverse Mortgage
1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or reverse mortgage professional to understand all the details.
Check out the following sites for more reverse mortgage information:
AARP's Reverse Mortgage Guide
HUD Reverse Mortgage Guide
Fannie Mae Reverse Mortgage Guide
2) Gather all information and documentation. While you will not need most of the documentation to get an initial quote or consultation, it is good to have it ready should you decide to get a reverse mortgage. Documentation for may include:
-Home deed, most recent tax bill
-Homeowner’s/hazard insurance policy
-Your personal information, Social Security, birth certificate, contact information
-Death certificate for any deceased property owner whose name still appears on the title
-Any information about your current mortgage(if applicable)
*Tip: There is no need to send all your documentation for a quote, be wary of requests to gather too much information(like your Social Security information) for a initial quote.
3) If you decide that a reverse mortgage is right for you. You should contact a certified, HUD-approved counselor to go over the process to answer all questions and concerns that you or family members may have. This step is required by the government, if you want a federally insured Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.
You can call HUD to get a HUD-approved counselor at Housing Counseling Clearinghouse on 1-800-569-4287. Or visit their website at : HUD Approved Agencies
For a Fannie Mae Home Keeper Mortgage, you must attend a consumer education session conducted by a nonprofit or public agency engaged in reverse mortgage counseling or a Fannie Mae counselor.
4) After you have met with a HUD-approved counselor, you will receive a HUD Counseling Certificate. Keep this certificate to give to your mortgage lender, it is required documentation to a get a Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.
5) Search for a reverse mortgage lender. It is very important to feel comfortable with potential a lender. Please see "Due Diligence" for tips on selecting a lender.
There are a number of ways to find a potential lender:
-Talk to your financial advisor or lawyer,
-Call HUD for FHA approved lenders at Housing Counseling Clearinghouse on 1-800-569-4287 or visit their HUD-approved lender website at www.hud.gov,
-Talk to you local bank,
-Use MyNoteMarket.com to identify potential lenders,
-Search the Internet,
-Talk to friends and family members who have a reverse mortgage.
6) Get multiples quotes for your reverse mortgage. Potential lenders will generally give you a free analysis and no obligation quote for your reverse mortgage. They should explain all potential options, fees and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.
*Tip: Ask the buyer up front about all costs and who is responsible for paying them.
*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.
7) Once you have selected a lender, you will have to fill out an application. There can be an application fee.
*Tip: Request to see the lender's privacy policy.
8) Appraisal - The lender will order an appraisal to determine an objective market value of your home and whether any repairs will be required to meet Federal Housing Administration guidelines. Federal Housing Administration guidelines only apply to FHA HECM.
9) Inspection - Most lenders will require an inspection to evaluate your home and make sure it is structurally sound and check for any termite or dry rot damage.
10) Underwriting - Once the lender has all the required information, they will begin their underwriting process which is similar to a normal mortgage process. This should take about a week.
*Tip: Ask the lender up front about the process and time to completion. Be cautious of very short process times.
11) Approval - If the reverse mortgage is approved, you will have to sign the loan documentation and decide how you would like to receive the payments.
*Tip: It is strongly advised that you have your lawyer review the loan documentation before you sign it.
12) Closing - Once all documentation is signed and closing a complete, you will begin receiving your payments. Note: You have 3 days after closing to cancel your reverse mortgage and it must be in writing.
Congratulations! You have a reverse mortgage.
*Please note: these are general guidelines, all situations are unique and vary by state and company.
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
For more information, please go to MyNoteMarket.com
Written by Johnny Polo
PegasusPolo.com
Check out the following sites for more reverse mortgage information:
AARP's Reverse Mortgage Guide
HUD Reverse Mortgage Guide
Fannie Mae Reverse Mortgage Guide
2) Gather all information and documentation. While you will not need most of the documentation to get an initial quote or consultation, it is good to have it ready should you decide to get a reverse mortgage. Documentation for may include:
-Home deed, most recent tax bill
-Homeowner’s/hazard insurance policy
-Your personal information, Social Security, birth certificate, contact information
-Death certificate for any deceased property owner whose name still appears on the title
-Any information about your current mortgage(if applicable)
*Tip: There is no need to send all your documentation for a quote, be wary of requests to gather too much information(like your Social Security information) for a initial quote.
3) If you decide that a reverse mortgage is right for you. You should contact a certified, HUD-approved counselor to go over the process to answer all questions and concerns that you or family members may have. This step is required by the government, if you want a federally insured Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.
You can call HUD to get a HUD-approved counselor at Housing Counseling Clearinghouse on 1-800-569-4287. Or visit their website at : HUD Approved Agencies
For a Fannie Mae Home Keeper Mortgage, you must attend a consumer education session conducted by a nonprofit or public agency engaged in reverse mortgage counseling or a Fannie Mae counselor.
4) After you have met with a HUD-approved counselor, you will receive a HUD Counseling Certificate. Keep this certificate to give to your mortgage lender, it is required documentation to a get a Home Equity Conversion Mortgage (HECM). You can skip this step if are looking for a non-Home Equity Conversion Mortgage.
5) Search for a reverse mortgage lender. It is very important to feel comfortable with potential a lender. Please see "Due Diligence" for tips on selecting a lender.
There are a number of ways to find a potential lender:
-Talk to your financial advisor or lawyer,
-Call HUD for FHA approved lenders at Housing Counseling Clearinghouse on 1-800-569-4287 or visit their HUD-approved lender website at www.hud.gov,
-Talk to you local bank,
-Use MyNoteMarket.com to identify potential lenders,
-Search the Internet,
-Talk to friends and family members who have a reverse mortgage.
6) Get multiples quotes for your reverse mortgage. Potential lenders will generally give you a free analysis and no obligation quote for your reverse mortgage. They should explain all potential options, fees and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.
*Tip: Ask the buyer up front about all costs and who is responsible for paying them.
*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.
7) Once you have selected a lender, you will have to fill out an application. There can be an application fee.
*Tip: Request to see the lender's privacy policy.
8) Appraisal - The lender will order an appraisal to determine an objective market value of your home and whether any repairs will be required to meet Federal Housing Administration guidelines. Federal Housing Administration guidelines only apply to FHA HECM.
9) Inspection - Most lenders will require an inspection to evaluate your home and make sure it is structurally sound and check for any termite or dry rot damage.
10) Underwriting - Once the lender has all the required information, they will begin their underwriting process which is similar to a normal mortgage process. This should take about a week.
*Tip: Ask the lender up front about the process and time to completion. Be cautious of very short process times.
11) Approval - If the reverse mortgage is approved, you will have to sign the loan documentation and decide how you would like to receive the payments.
*Tip: It is strongly advised that you have your lawyer review the loan documentation before you sign it.
12) Closing - Once all documentation is signed and closing a complete, you will begin receiving your payments. Note: You have 3 days after closing to cancel your reverse mortgage and it must be in writing.
Congratulations! You have a reverse mortgage.
*Please note: these are general guidelines, all situations are unique and vary by state and company.
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
For more information, please go to MyNoteMarket.com
Written by Johnny Polo
PegasusPolo.com
Monday, November 5, 2007
How To Sell Your Life Insurance Policy
1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or lawyer.
*Tip: If you are considering letting a life policy lapse because of future premium payments, it is good idea to get a quote. You may be surprised at the hidden value of the policy.
2) Contact the insurance company or financial advisor who issued/sold your life policy to determine if you can cash out(surrender) or if the policy has a accelerated death benefit and what penalties(if any) are involved. Depending on the type of policy and contract, it may be possible to surrender the policy for a net cash surrender value or use the accelerated death benefit option directly with the insurance company. This option may give you more money than selling the policy.
If you would like to get competitive quotes before you surrender your policy, you should obtain all the contract details and confirm the life policy can be sold, assigned, transferred to a new buyer. You will need this information to give to the potential buyer.
*Tip: Check out the guide from the National Association of Insurance Commissioners (NAIC) entitled: Selling Your Life Insurance Policy
3) Search for a buyer of life insurance policies or life settlements. It is very important to feel comfortable with potential a buyer. Please see "Due Diligence" for tips on selecting a buyer.
There are a number of ways to find a potential buyer:
-talk to your financial advisor or lawyer,
-use MyNoteMarket.com to identify potential buyers,
-search the Internet,
-talk to friends, family, or acquaintances who have sold a life policy.
4) It is recommended that you have as much information collected before you begin this process. The potential buyer will request specific information about your life policy.
*Tip: Request to see the buyer's privacy policy.
Information requests can include:
-Life insurance policy/contract - from the insurance company or payment provider
-Insurance company contact information
-Your personal information including driver's license
-Your medical professional's contact information
-Your lawyer's information, if needed.
5) Get multiples quotes for your life policy. Potential buyers will generally give you a free analysis and no obligation quote for your life policy. They should explain all potential options and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.
*Tip: Ask the buyer up front about all costs and who is responsible for paying them.
*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.
6) Once you have selected a buyer, they will continue an underwriting process. This process usually lasts between 2 to 8 weeks, depending on the buyer, the insurance company and complexity of your situation and life policy. They will contact the insurance company to work through the details and ensure compliance with the new contract.
*Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.
7) When the underwriting is complete, you will have to sign a contract (purchase agreement) with the buyer. This contract should outline the terms and conditions of the life settlement payment.
*Tip: It is strongly advised that you have your lawyer review this contract before you sign it.
*Tip: You generally have a minimum of 10 days to rescind the contract after you receive payment, it varies by state. Check the contract.
8) Once all paperwork and contracts are review and completed, they will be sent to an escrow agent or independent third-party. When all the information and payment is verified by the escrow agent or independent third-party, you will receive your payment.
Congratulations! You sold your life insurance policy.
*Please note: these are general guidelines; all situations are unique and vary by state and company.
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
For more information, please go to MyNoteMarket.com
Written by Johnny Polo
PegasusPolo.com
*Tip: If you are considering letting a life policy lapse because of future premium payments, it is good idea to get a quote. You may be surprised at the hidden value of the policy.
2) Contact the insurance company or financial advisor who issued/sold your life policy to determine if you can cash out(surrender) or if the policy has a accelerated death benefit and what penalties(if any) are involved. Depending on the type of policy and contract, it may be possible to surrender the policy for a net cash surrender value or use the accelerated death benefit option directly with the insurance company. This option may give you more money than selling the policy.
If you would like to get competitive quotes before you surrender your policy, you should obtain all the contract details and confirm the life policy can be sold, assigned, transferred to a new buyer. You will need this information to give to the potential buyer.
*Tip: Check out the guide from the National Association of Insurance Commissioners (NAIC) entitled: Selling Your Life Insurance Policy
3) Search for a buyer of life insurance policies or life settlements. It is very important to feel comfortable with potential a buyer. Please see "Due Diligence" for tips on selecting a buyer.
There are a number of ways to find a potential buyer:
-talk to your financial advisor or lawyer,
-use MyNoteMarket.com to identify potential buyers,
-search the Internet,
-talk to friends, family, or acquaintances who have sold a life policy.
4) It is recommended that you have as much information collected before you begin this process. The potential buyer will request specific information about your life policy.
*Tip: Request to see the buyer's privacy policy.
Information requests can include:
-Life insurance policy/contract - from the insurance company or payment provider
-Insurance company contact information
-Your personal information including driver's license
-Your medical professional's contact information
-Your lawyer's information, if needed.
5) Get multiples quotes for your life policy. Potential buyers will generally give you a free analysis and no obligation quote for your life policy. They should explain all potential options and provide an amount that you will receive. While the highest quote may be attractive, you should consider all the factors together. These factors include: reputation, experience, your comfort level, etc.
*Tip: Ask the buyer up front about all costs and who is responsible for paying them.
*Tip: Beware of potential buyers who ask for a fee up front. There should be no fee for a quote or analysis.
6) Once you have selected a buyer, they will continue an underwriting process. This process usually lasts between 2 to 8 weeks, depending on the buyer, the insurance company and complexity of your situation and life policy. They will contact the insurance company to work through the details and ensure compliance with the new contract.
*Tip: Ask the buyer up front about the process and time to completion. Be cautious of very short process times.
7) When the underwriting is complete, you will have to sign a contract (purchase agreement) with the buyer. This contract should outline the terms and conditions of the life settlement payment.
*Tip: It is strongly advised that you have your lawyer review this contract before you sign it.
*Tip: You generally have a minimum of 10 days to rescind the contract after you receive payment, it varies by state. Check the contract.
8) Once all paperwork and contracts are review and completed, they will be sent to an escrow agent or independent third-party. When all the information and payment is verified by the escrow agent or independent third-party, you will receive your payment.
Congratulations! You sold your life insurance policy.
*Please note: these are general guidelines; all situations are unique and vary by state and company.
* Please consult a lawyer, licensed insurance agent, securities broker, or other financial professional for advice regarding your personal situation.
For more information, please go to MyNoteMarket.com
Written by Johnny Polo
PegasusPolo.com
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