ost of Lawsuit Ex amining the CFunding
In the last article, we examined the historical pricing modelsin the lawsuit cash advance funding industry. We alsodiscuss...
In this entry, we examine the costs associated with lawsuitfunding and analyze them from the perspective of anapplicant wh...
Since every persons circumstances are different, weighingthe costs in obtaining a lawsuit loan or pre-settlementfunding ag...
ple                                  ypot hetical Exam                    ing Costs - H       Lawsuit FundA 36 year old pl...
Forced with an imminent foreclosure proceeding, thisplaintiffs options are limited. On the one hand, he can filebankruptcy...
s       Comparing CostWe already discussed the costs associated with lawsuitcash advances. But what about the cost of not ...
1. Removal from the Dwelling. The defaulting party mustthen find shelter. Normally, a rental unit requires first andlast m...
2. Destroyed Credit Scores. Like it or not, this countryoperates on debt. Who is indebted to whom is the oldestand arguabl...
ConclusionWhen thinking about the above, it is helpful to weigh thelong term effects of these events. The real problem is ...
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Examining the cost of lawsuit funding 7.2

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In the last article, we examined the historical pricing models in the lawsuit cash advance funding industry. We also discussed the business dynamics that often change pricing in any business which puts capital at risk for profit.

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Examining the cost of lawsuit funding 7.2

  1. 1. ost of Lawsuit Ex amining the CFunding
  2. 2. In the last article, we examined the historical pricing modelsin the lawsuit cash advance funding industry. We alsodiscussed the business dynamics that often change pricingin any business which puts capital at risk for profit.Specifically, we mentioned how the settlement loan industryevolved from an enterprise charging as much as 10% permonth as "interest" on Granuflow lawsuit cash advances toa business where applicants are routinely "funded" for aslittle as 15% per six month period.
  3. 3. In this entry, we examine the costs associated with lawsuitfunding and analyze them from the perspective of anapplicant who is in dire need of cash for whatever reason.From this angle, we can more accurately assess the costsassociated with this type of financial relief - only availablefor those who have a pending lawsuit.
  4. 4. Since every persons circumstances are different, weighingthe costs in obtaining a lawsuit loan or pre-settlementfunding against the future proceeds of an individualspending case, can only be accomplished on a case by casebasis. For this reason, perhaps the best way to illustratethe point, is to use a hypothetical example.
  5. 5. ple ypot hetical Exam ing Costs - H Lawsuit FundA 36 year old plaintiff in a lawsuit finds himself unable towork and support himself and his family due to injuriessustained due to the negligent driving of another individual.Since 2008, plaintiff has exhausted all other avenues forfinancial relief. He has borrowed money from his friendsand family. He has taken a home equity loan against thevalue of his home. He has gone through his disabilitypayments from work and the other "benefits" he receivesdo not cover his monthly expenses. He is currently 5months in arrears on his mortgage and property taxpayments.
  6. 6. Forced with an imminent foreclosure proceeding, thisplaintiffs options are limited. On the one hand, he can filebankruptcy, which could save his home but would ruin hiscredit rating for many years. He can hire an attorney for thisbut the attorney requires payment up front for his time andexpertise.
  7. 7. s Comparing CostWe already discussed the costs associated with lawsuitcash advances. But what about the cost of not being ableto pay bills on time, or at all? We may not be able toquantify the costs exactly, but we can at least identify somepotential problems. For example, defaulting on a mortgagecould result in the following "costs" for the homeowner.
  8. 8. 1. Removal from the Dwelling. The defaulting party mustthen find shelter. Normally, a rental unit requires first andlast month rent plus a security deposit. That is threemonths rent up front from the new tenant. Of course, if theperson has three months rent, he would probably be ableto at least delay the foreclosure process. So there is aliquidity problem on top of the existing problem. One caneasily foresee multiple "costs" associated with beingremoved from a place of residence (e.g. moving costs,additional fuel expenditures, storage fees, etc.).
  9. 9. 2. Destroyed Credit Scores. Like it or not, this countryoperates on debt. Who is indebted to whom is the oldestand arguably the most profitable game in history. Access tocredit is an integral part of the game and are a function ofcredit scores. Obviously, a mortgage foreclosure wouldseverely hamper a persons access to credit for car loans,future home purchases, appliances or even credit cards.Further, even if credit is offered, the interest rates chargedwill be far more than otherwise would be required. Aboveare simply two "costs" facing the person in our example.
  10. 10. ConclusionWhen thinking about the above, it is helpful to weigh thelong term effects of these events. The real problem is howto accurately assess the cost and compare them toobtaining a lawsuit cash advance funding against a case.Ultimately, the analysis depends on individualcircumstances. Fortunately, the lawsuit funding businessexists for those persons who make the analysis andchoose lawsuit loans as a possible solution. Thousands ofpeople make this choice each and every day. Thank you foryour interest in the pre-settlement loan business.http://www.consumerinjuries.com/granuflo/

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