When people win the lottery their winnings are often paid over in installments over a predetermined period of time. These payments are a blessing and help augment, or supply, the winner with income for years to come, but sometimes the winner needs money right away. To get money faster than the winnings are scheduled to be paid out, the lottery winner can sell their lottery payments.
Lottery winners sometimes need money immediately. They may need to clear up debt, pay for education, make a payment on their house, or take care of any other financial obligations. If the lottery winner needs more money than they will receive from their lottery payment plan they can sell their lottery payments for a lump sum they can use in the short term.
Deciding to sell your lottery payments is the first step of a longer process. You need to decide what company you are going to sell your lottery payments to so that you can get the best return on the sale. Many companies that purchase lottery payments do not hold on to the payments, but sell them to banks. They effectively act as a broker between you and the bank, giving you less than the full value of your payments to make a profit.
The best way to be confident that you are getting a fair value for your lottery payments is to deal directly with a bank and bypass these middlemen. Dealing directly with a bank means that you are selling your lottery payments directly to the end buyer. Nobody is going to try and sell the payments again for a profit.
Selling your lottery payments to a bank can also help give you peace of mind. Established companies must protect their reputation and are less likely to treat you poorly. An example is AnFed Bank. AnFed Bank is a division of BofI Federal Bank (Nasdaq: BOFI). Because BofI is a federally chartered and publically traded company, they have a responsibility to their shareholders to treat you right.
When you win the lottery you will receive a large amount of money. If your lottery payments are scheduled to take too long, selling your lottery payments to somebody else can be a quick way to get paid up front. When selling your lottery payments, you are most likely to get a good deal if you work directly with a bank.
