The IRS is reporting that some rebates are not going to come via direct deposit, even if you tried to use direct deposit.

It turns out that some taxpayers who used a tax preparation service may have to wait for a physical check. The problem seems to be related to:

• Paying your tax preparation fee from a bank account or out of your refund, or
• Getting a loan against your anticipated refund

A Denver news station reports,

"People who used preparation services like Turbo Tax and H&R Block are affected".

So, if it seems like your bank account is missing a stimulus payment, you should check with your tax preparer.

Lawmakers have been busy with legislation designed to fix the mortgage and housing mess. Today they passed the Barney Frank proposal that would allow some homeowners to refinance with a government guarantee. They also approved the Maxine Waters plan, which would provide funding to rehabilitate foreclosed properties.

Neither of the proposals got enough votes to avoid a veto, and President Bush is not a fan of either approach. As a result, you should expect to hear about a veto, and lawmakers will go back to the drawing board. For additional details, see coverage of the House mortgage bills in the New York Times.

How would you fix the mortgage mess? Tell us about it in the comments.

Most things in this world are not meant to be upside down. This includes your loans.

A loan is upside down when the loan balance is greater than the collateral's value. When this happens, you've got trouble. You'll have to write a check to unload the thing, or you'll have to keep paying down the loan until you can get out from under it.

Find out how loans get upside down, how they go away properly, and what you can do to avoid upside down loans.

If you've been in this situation before, tell us about your upside down loan nightmare in the comments below.

We've talked about how some banks are freezing HELOCs (home equity lines of credit). While it's bad enough to find that your HELOC is frozen, you may also find that your credit suffers.

Credit scores look at how much of your available credit you use. If you're using most or all of it, it looks like you're skating on thin ice -- which means you're more likely to start skipping payments and default on the loan. If you use only a third of your available credit or less, you look secure.

When your bank freezes or reduces funds available through your HELOC, it can look like you've used more of your available credit. For example, if you've got $2,000 outstanding on your $10,000 line of credit, you're good. Things can change if the bank changes your maximum borrowing limit to what you've borrowed: $2,000. Your credit utilization goes from 20% to 100%.

If your bank has frozen your HELOC, make sure you know how it's reflected on your credit reports.

Further reading:

• How to View Your Free Credit Reports
• How Credit Scores Work

Need to pick the next president? You might want to watch how they handle the ongoing mortgage crisis. All three of the leading candidates have proposed solutions to help reduce foreclosures amid the subprime debacle. While these plans are sure to change as time goes on (still a long way to go before the election), you should follow your favorite candidate's proposals.

The New York Times has a nice summary of each candidate's position on the mortgage crisis, along with immediate and long-term plans. While you're at it, check out their positions on the other issues. The mortgage crisis might be an example of how they can handle other financial challenges that arise during their time on the job. [via Consumerist]

Further reading:

• Subprime - Definition
• Watch for High Risk Mortgages

Ken from Bank Deals has a new website. As you may have guessed from the name above, you can search for high yield checking accounts small banks and credit unions in your area. He introduces the concept as follows:

"How would you like a checking account that pays higher interest rates than CDs and online savings accounts?"

To qualify you have to jump through some hoops, which are summarized here. Ken has done a great job with the Bankdeals site, and from what I can tell he's put the same level of quality into his new site: High Yield Checking Deals.

Other interest-bearing payment accounts:

• ING Direct Electric Orange Checking
• GMAC Bank Money Market Savings
• CapitalOne High Yield Money Market Account

ING Direct is changing the account agreement so that they "may" be able to offer wire transfers in the future. A wire transfer would zap your money to another bank in one day, so you wouldn't have to wait the customary 2-3 business days for access to your cash.

The wire transfer service will cost a bit more, but you may be willing to pay for it in times of need. This mitigates one of the pitfalls of online bank accounts: quick access to your cash. If they add the service (which they may or may not...) you can have cleared funds sent in just one business day.

Further reading:

• 3 Reasons to Avoid Internet Bank Accounts
• ING Direct Review

Peer to peer lending allows you to skip the bank and borrow from individuals. You can borrow from complete strangers or just use peer to peer lending services to structure loans between friends and family. Find out how peer to peer lending works, the major services, and how you can take advantage of it.

Getting a private student loan is tougher than Chemistry 101. Bank of America announced that they'll stop making private student loans, and others have been pulling out of the market in recent months.

With the ongoing credit crunch, money is hard to come by if there is any risk of a borrower default. As a result, you'll have to lean on student loans backed by the government more than you might have hoped. Government backed loans are great, but the amount you can borrow is limited -- often not enough to pay for expensive programs and living expenses.

Home equity lines of credit have gone the same way as private student loans: they're in short supply. If you're going to need money in the mid to long term you might plan ahead and get it while you can. [via Consumerist]

Will this affect you? Tell us about it in the comments.

Further reading:

• Student Loans 101

As the housing crisis deepens, some banks are freezing existing home equity lines of credit (HELOCs). They tell borrowers that there's no more money available.

You might think that this just happens in the subprime area, but even people with strong credit are affected. The banks argue that falling home prices make it harder to recover on bad loans. The New York Times reports that hundreds of thousands of HELOCs have been frozen so far, and there's more to come.

Does this mean you should exhaust any money available in your HELOC? That's tough to say. You should certainly prepare for the prospect of a HELOC freeze or decrease in the amount of money available to you.

Further reading:

• How a Line of Credit Works