Lacey I can't believe posted this thread! I was just getting ready to post the same questions this morning. Magoo is doing the same thing only its his middle lower back that seems to be bugging him. He is actually pulling out clumps of hair with his teeth! I think he gets agitated with all the itching and just pulls out his hair. I think part of it is that during the winter we use so much heat and it dries them out too. I'm running my humidifier to see if that helps and I bought some of this paste called NutriMalt that is for skin and coat. I think it helps replace oils so they aren't so dry. I've only been using it for a day so I can't tell you if it's going to help or not. It wasn't very expensive, it was $4.99 for a tube about the same size as the paste for hairballs. You give it to them the same way too. About a 1 inch long ribbon once a day. I'm hoping that helps him too. It's awful to see them do this to themselves.
Good Luck and keep me posted on anything you find out and I will do the same for you.
Kissies to both the sweeties!!