Xauth/X11 ssh forwarding errors with .Xauthority file not writable

I had same issue after syncing my home folder on Ubuntu 12.04. I resolved it using following commands:

rm ~/.Xaut* 

Then I logged out and re-logged in. Following warning arisen:

/usr/bin/xauth:  file /home/iranice/.Xauthority does not exist

After that, Linux created .Xauthority file automatically. I logged out and re-logged in and everything was OK.