Frequently Asked Questions Regarding Lawsuit Funding
- Posted by Dr. Tom Rhudy Tue, 9 Feb 2010
- 0
Q. "How much is your interest on lawsuit funding?"
A. This would be a valid question, were the requestor to obtain a loan. However, there is no interest charged when obtaining lawsuit funding because it is not a loan. If it were a loan, it would be necessary for the requestor to repay that loan irrespective of the outcome of the case. However, with a non-recourse advance, if you do not prevail in your case, you pay nothing. It is for this reason that the funding-entities will charge a risk-fee. The risk-fee charged is contingent on the inherent risk in the lawsuit that you present.
Q. "What is the length of time that it takes to obtain either a lawsuit loan or lawsuit funding?"
A. It depends on your attorney. The broker will send a request for documents to your attorney, and must speak with your attorney as soon as possible. If the required information is obtained and the broker is able to talk to your attorney within one day, you may receive your settlement loan that same day. Therefore, you should notify your attorney that you're looking to get a settlement loan and your attorney should supply all requested information to Legal Settlement Loans as quickly as possible.
Q. "Are there any upfront fees when obtaining either a lawsuit loan or lawsuit funding?"
A. There is nothing that the applicant must pay in advance of obtaining the requested funding.
Q. "If my request is approved, how am I to go about obtaining either a lawsuit loan or lawsuit funding?"
A. The lender can FedEx a check to you overnight, or the lender can wire the money directly into your checking account for a pre-determined fee.
Q. "Am I going to have to provide my birth-date and Social Security number when I submit my application?"
A. You won't be required to initially. However, if you are approved, you will need to provide that information prior to obtaining the lawsuit funding.
It is important for you to be aware of the fact that the broker will be required to contact your attorney as quickly as possible and to forward a Request for Documents to your attorney. It will also be necessary for the broker to ensure that the attorney actually receives that request. The applicant would be wise to keep in mind that it is customarily the staff, not the attorney himself/herself, who will be providing the requested documentation.
Your broker will need to find out very quickly with whom they need to speak to obtain the requisite documentation. If the paperwork is not received within 1-2 days, a competent broker will follow up with the law firm and request the documents once again.
Do you have an attorney who is not likely to cooperate with the broker? If so, the broker will ask you to assist in obtaining requisite documentation. Remember, the clock is ticking!
If your attorney is particularly uncooperative, a good broker is not going to encourage you to fire that attorney and retain a new one. Irrespective of the broker's recommendations, it is important for both you and your attorney to cooperate in this process. If either you or your attorney fails to do so, the likelihood of obtaining either a lawsuit loan or lawsuit funding is significantly diminished.
If your attorney requires that you sign a Release of Medical Records, your broker will obtain the requisite release form and forward it to you for your review and signature. Once you've reviewed and signed that document please forward that to your attorney as quickly as possible. Additionally, it is important for you to notify the broker that you have done so.
If all goes well, the documents will be submitted following the initial contact. Upon receipt of the requested documents, the broker will review your documents to ensure that the information is complete. If the information is complete, your packet will be submitted to a funding-entity for review. Upon completion of the funding-entity's review, if additional documentation is required, the applicant will be notified. If no additional documentation is required, the packet will be submitted to underwriters for review and consideration. If the facts of the case substantially favor your position, your chances of obtaining either a settlement loan or lawsuit funding are extremely high!