For those who are in the middle of a settlement lawsuit or just received it, you may still need some money and settlement loan companies are there to help you. Loan companies in general have a bad reputation, because they generally include high fees and a lot of interest. However, if they are used correctly, they can be beneficial and helpful. It is important to learn about the different types of loans available from settlement companies.
Pre Settlement Loans
A pre-settlement loan is a loan that is given to you from a company before you have won your case. You can receive this type of help for almost any settlement, including injury and accidents. However, one big difference is that the company doesn’t know how much money you will receive because your case hasn’t been ruled on yet. This doesn’t mean you can’t get these loans, but your case will be looked into thoroughly to ensure you are a good candidate and that the funding company and your lawyer agree you will win at some point.
These loans usually have different fees because there is quite a bit of risk to the loan company. This means you will usually see higher interest and more fees. This is important to understand, because while you won’t have to pay back the loan until you win, you will still need to pay on the interest of the loan. However, if you don’t end up winning the case, you don’t need to pay back the loan.
Some states have banned pre-settlement loan options because they feel they are unfair or for some other reason. Therefore, you must do some research to ensure that this is an option for you in the state where you live (not the state where the loan company is or where the lawyer presides).
Post Settlement Loans
Post settlement loans are given after your settlement has been won. In most cases, you will receive a structured settlement, meaning you get paid some money over a period of time. If you don’t have enough money for a month or so, you can take out a loan on your settlement. It is usually easier to get these loans, because you have already been awarded a specific amount and the lender knows how much money you have coming in.
Because you have been awarded, your fees and interest will generally be less and these loans are legal in all 50 states.
Finding settlement loan companies is easy, though you should familiarize yourself with the different options. Visit Resolution Funding today and learn more.