Posted by C. Rivera Chicago Notary Services on 5/22/10 11:40am
Msg #337671

structured settlements (general notary work)...WOW!

I'm doing one next week, and the terms are absolutely sickening. I just can't believe this guy is going to agree with the terms listed!

For $30,000 & change in cash, this guy is going to give up $774,000 & change YES, NOT A TYPO! AND on top of THAT! They're charging him $5,000 for the frickin' transaction (like closing costs).

I'm hoping that this case won't get by the judge because of its outrageousness! Its going to be filed in NY, where the contract /'transaction' will be filed.

After some research, I found out that at least one of the company's affiliate's petition was denied by a NY judge, (and I'm sure there are more) and rightfully so. The seller in this case, was going to get a $10,000 in cash advance on his annuity and in return he was going to sell his annuity to the affiliate for $100,000....?? The judge denied the petition, and said that those arrangements were ridiculous and in NO WAY benefited the seller!

I know in some states, selling annuity's for cash is illegal, but IMO, it should banned all together. The practice is just horrible.

I will go and take the documents to him, he has 3 days to rescind and it does say, in many many places to seek the consultation of any attorney, cpa or other financial guru. But I MAY just give him a few referrals of attorneys who can advise him of his decision.

Damn, times are hard, and everyone wants their money NOW, but not at the cost of selling yourself to the devil to pay peter and paul? No wayyyy.

Reply by BossLadyMD on 5/22/10 12:04pm
Msg #337683

what's your cut?

be careful on giving out lawyer referrals. you can stop reading over the paperwork or just give the assignment back...JMHO

Reply by C. Rivera Chicago Notary Services on 5/22/10 12:12pm
Msg #337690

yeah I know I know I know... n/m

Reply by Shoshana/AZ on 5/22/10 12:14pm
Msg #337692

Some people REALLY need the money these days. I often do title loans for one company. The apr on those loans is about 80%.

Reply by Lee/AR on 5/22/10 12:25pm
Msg #337698

Be careful...Re: structured settlements ...WOW!

Often if it's not approved by court, they won't pay you dime one. Settle that situation in writing upfront.

Reply by BossLadyMD on 5/22/10 12:25pm
Msg #337699

exactly - it doesnt have to be amiable to us n/m

Reply by JanetK_CA on 5/23/10 2:28am
Msg #337788

I did an appointment a couple of months back that wasn't a structured settlement, but a loan against a used car. The amount of the loan was pretty small, but it turned out it was being signed by a single mother. The responsibility for the loan (which had an APR of MORE than 80%!) was supposed to be for her just-out-of-high-school daughter to buy another used car so she could get to her new job.

The company making the loan had me go through the motions of "examining" the mother's car, which had lots of dings on it. With the interest rate they are getting, it seemed to me that they would have probably approved anything, because they sure didn't care about the car's condition or the miles on it.

The mother kept asking the daughter if she was sure - and I went over the TIL with them in detail - but she couldn't see beyond the monthly payment. I just hope the job - and the car she had in mind - lasts long enough for her to pay off that loan. Sad part was that if she took the bus for a few months and saved her money, she'd be able to buy an equivalent car for cash, without having to pay all that interest. (Man, the teacher in me was crying to get out, but I somehow managed to hold my tongue!) This was a case of wanting instant gratification, regardless of the cost, vs. a real need, but that seems to be prevalent in our society lately. (Not to diminish those who genuine do "REALLY need the money these days".

Reply by Hugh Nations Signing Agents of Austin on 5/22/10 1:20pm
Msg #337711

Not the way to go

There are times when the urge to nudge a signer or borrower toward reconsideration is almost irresistable. One of those times is when because of the high fees it will take a borrower 10-15 years to amortize the cost of refinancing. It takes a bit of sophistication to ferret out the true cost of the transaction.

This one, though, is not even close. He knows how much he is entitled to. He knows how much he is being paid for the annuity. He has elected to settle for the much smaller amount. So you notarize with no nudging.

Of course, you might offer to buy the annuity **yourself** for $30,000 without closing costs. Heck, with the annuity maybe you could give up this floundering signing agent business. Or you could sell shares in the transaction to other agents.

Just click on my name to get my phone number.

Reply by Notarysigner on 5/22/10 1:46pm
Msg #337713

Re: Not the way to go

When I retired a lot of managers took lump some payments Thinking the cash would last forever after paying the taxes on it. Some took it and invested in the stock market some put in under the pillow. I did the math and said naw, it ain't enough to keep me going for ten years. So I took the annuity, that was 13 years ago. Them, all gone, me going strong and I never got another 40 hour job either. I would never sale it even if it were legal, that's just plain stupid. IMO

Reply by BrendaTx on 5/22/10 3:01pm
Msg #337723

Annuities - When my husband died...

I could have taken $X amount in a lump sum. Or, I could have it pay me monthly. I figured out that at the lump sum amount vs. monthly amount, I would only have to live a little more than three years to win. At this point, the annuity has paid me three times the amount that I could have gotten ten years ago.

Reply by C. Rivera Chicago Notary Services on 5/22/10 7:33pm
Msg #337759

I'm sorry about your husband Brenda...u did the right thing. n/m

Reply by Rani Sampson on 5/23/10 12:11pm
Msg #337811

Hugh Nations is right: Bid it up!

Is anyone aware of a market for these structured settlements?

Lately, I've been attending foreclosure sales and it's been heartening to see bidders competing to get a property. Often, bidders raise the price to the point where the bank gets paid off and there's a little left over for the homeowner.

I would love to buy annuities at higher prices than what this guy settled for. Hmmm, I might have to look into this!

Reply by MW/VA on 5/22/10 6:46pm
Msg #337752

Yes, structured settlement companies make a HUGE profit at this. If you see the people I have done them for, I sort of understand. I'm guessing that many are awards from TORT lawsuits--money these people never had in the first place, so a big chunk of cash upfront is appealing.
It reminds me of the people who pay huge fees to the tax prep places & pay exhorbitant fees for "refund anticipation loans". It's usually about EIC money--again money that they're being GIVEN--so they don't see an issue with paying to get it faster--they want the cash.

Reply by LauriecPA on 5/23/10 12:10am
Msg #337783

Re: These calls are always for appointments taking place in

45 minutes or less...

They never want to give the customer a chance to change their mind.