Apparently a Bank of America contractor who mistakenly thought a house was empty when the owner was away, padlocked the home and cut off the utilities.

Angela Iannelli, who lives near Pittsburgh, says the worker also stole her pet parrot, Luke, causing her emotional distress during the week she couldn’t find him, according to the Wall Street Journal. She said she was prescribed medication for the anxiety.

Iannelli has filed a suit against the bank, which says it thought the home was vacant. Bank of America sent to contractor there even though she was not in default on her mortgage and the house was not vacant.

Iannelli’s lawsuit charges that the contractor cut water and electrical lines, damaged  flooring and furnishings, and poured antifreeze into sinks and toilets.

She says when she called the bank to complain no one would tell her where the bird was at first, but later she was told to go to the contractor’s office. The Bank has apologized to Iannelli, but she is seeking $50,000 in damages in the suit.

This is a bizarre story on several accounts. First, why was the contractor sent to the home in the first place if the homeowner wasn’t even in default on the mortgage loan? Had they called her about being late with a mortgage payment? Second, if the contractor did in actually damage her home and cut utility lines,  what was the reason for doing so?  

It’s pretty common knowledge that homes that end up in foreclosure sometimes are damaged or need a lot of repairs. The assumption is usually that any damage in foreclosed properties was inflicted by homeowners angry at being put out of their homes. It’s disturbing to think that a contractor hired by a bank to secure a property could actually be the one trashing the place.

Home builders are cutting prices on new homes to entice buyers. New construction accounted for 7.6% of home purchases last year, down from an average of about 16% over the past 20 years, according to an article in the Wall Street Journal.

Home builders have been hit hard by the recession as many people looking to buy homes have turned to foreclosures, which can be found just about anywhere in the country.

Folks looking to take advantage of the home buyer tax credit this year shouldn’t rule out new home construction. Even if you don’t qualify for the tax credit some of the deals being offered may be worth pursuing. Home builders are offering cut-rate pricing to move inventory. 

According to the Journal article, Meritage Homes in Maricopa, Ariz., is selling three-bedroom houses that start at $99,900, half the price they would have been four years ago. KB Homes is selling new homes in Las Vegas for $150,000 to $170,000, way below the $400,000 price tag the would have carried before the housing market tanked.

If you don’t want to deal with some of the surprises and headaches that can come with purchasing a foreclosed home, it may be worth your while to starting visiting communities with new homes. Who knows, maybe you’ll be able to get a few upgrades thrown into the deal if you decide to buy.

A recent survey found that  more people would want to be neighbors with President Barack Obama and his family than any other celebrity. The Zillow Celebrity Neighbor Survey found that 14% of U.S. adults would prefer to live next to the Obamas.

Other celebrities that were voted as desirable neighbors were Sarah Palin (chosen by 12% of those polled), talk show host Ellen DeGeneres and her partner Portia DeRossi (12%), singer Taylor Swift (9%), and Oprah Winfrey (7%). Interestingly, Palin was voted as the worst neighbor by 11% of those polled.

The third annual survey polled 2,000 people and found that 17% said “Octomom” Nadya Suleman would be the worst neighbor, followed by Jon and Kate Gosselin (16%).  Other people who ranked highly for being bad neighbors were Richard and Mayumi Heene, parents of the “Balloon Boy” involved in a media hoax last year, and rapper Kanye West.

“For two years in a row now, Americans have made it clear that they think politicians and talk show hosts make the best neighbors. If nothing else, there will be plenty to talk about at the summer barbecue,” Amy Bohutinsky, Zillow.com vice president of communications, said in a statement. “Meanwhile, this year we noticed a trend on the worst-neighbor side; apparently Americans are opposed to living next door to a brood of young children, particularly those that come with a television crew and paparazzi.”

Of course you can’t always choose your neighbors, and many people have been shocked and dismayed upon meeting the people who live next door or across the street. 

You may not end up living next to a celebrity, but it is reasonable to want to know as much as possible about any neighborhood you’re thinking of moving to before signing mortgage papers.  Criminal Justice USA has a comprehensive guide to researching any community you’re interested in, as well as any home you’re interested in buying.

Do you agree with this poll? Which celebrity would you most want to have as a next door neighbor?