In order of process you will find the following documents in a typical SMA process:

48 Hour Hold:

Simple call or email us to hold a case on our list for your exclusive consideration.  Backup holds are also accepted.  Use this time to ‘Sleep on It’ because we consider a signed Purchase Offer to be a sale… not a loose expression of interest.

Purchase Offer Form:

 This can be faxed in or we can simply do over the phone.  This secures a deal for you and takes it off the list.  The reservation form gives us the info needed for how the payment servicer will mail your checks.  We do need to have the titling of how you wish to purchase this asset, such as Joint Tenants, via your IRA, in a Trust, or in an LLC.    A blank Purchase Offer is HERE.

Depending on the status of the case you reserve, if may be 1 to 60 days before the next move- In Stock cases can close right away, while Coming Soon case timelines vary.  No documentation or deposit is required during this time period.

Legal Review:

Once DCF Exchange, LLC, the wholesale firm, receives all the transfer documentation and the case is court approved, there is a complete legal review and a complete closing book documenting the contractual transfer of the asset is prepared.

The review process involves the following steps:

  • Thorough review of the court order and supporting court documents, including:
    • Petition
    • Proof of service on all interested parties
    • Final signed and file stamped court order
  • Review of all of the disclosures to the original annuitant and interested parties required by state law
  • Verification with the insurance carrier that the assigned payments exist and are available to be transferred
  • Confirmation of a clean credit check, lien search, and docket search on the original annuitant to verify that the structured settlement payments can be transferred free and clear.
  • Confirmation by the insurance carrier via acknowledgement or stipulation agreement of the court ordered transfer of the payments.
  • Examination of the transfer and assignment documents to ensure that all right, title, and interest in the cash flows are conveyed absolutely and irrevocably to the purchaser.
  • Preparation of Absolute Assignment of Cash Flows

A thorough legal review checklist with case-specific findings is included in each Closing Book. The Closing Book is supplied to the agent and purchaser two days before the purchaser is expected to fund the transaction, allowing ample time for review.

Click Here  for a sample redacted closing book showing the entire transaction from a sample case.

Signature of Absolute Assignment:

Within two business days of receipt of the Closing Book, the purchaser must sign and return the Absolute Assignment of Cash Flows and wire the purchase price.  Upon mutual execution of the Absolute Assignment and our receipt of the purchaser’s funds, full title is transferred and the transaction is closed and funded.

Summary Table:

For clients purchasing multiple SMA’s we prepare a summary table showing your annual income amounts from all your SMA’s for easy planning.  A sample is HERE.

Inventory turns over regularly so if there’s one you like, it’s always good to call or email to reserve and/or verify availability.  It’s best not to hesitate.