Reverse Mortgages.
This relatively uncommon loan actually involves getting money back from your loan provider to use however you choose. Reverse mortgages are expected to boom over the next five years, particularly among senior citizens--over a million could apply, according to Fannie Mae, the big secondary mortgage company. But Fannie Mae warns consumers to watch out for the telltale signs of fraud. First, know how to recognize pressure sales tactics-- don't let anyone fast-talk you into a reverse mortgage, not even friends or relatives. Second, make sure that payments are made out directly to you--don't sign the money over to anyone else. Third, remember that it's totally up to you how you spend the money--just because you heard about a reverse mortgage program from a remodeling company or an investment firm, doesn't mean you have to purchase their services.

Fannie Mae's free brochure on Reverse Mortgages is available by calling (800)732-6643.

Selling of Mortgage Loans. Although it may come as a surprise when the notice arrives, it's not unusual for your mortgage loan to be sold to a different loan provider. Unfortunately, fraudulent operations have sprung up that send false letters to homeowners, saying that their loan has been transferred, and to send payments to a bogus address. Be sure to look carefully at the notice. It should include the existing lender and new lender, must disclose the date of the transfer, the name, address, and telephone number of the new lender, and the appropriate contacts for both the old and new lender offices. The transfer cannot affect the terms of the loan or servicing provisions. Federal law also requires a 60-day grace period during which payments cannot be considered late nor penalties assessed for payments that are misdirected.