A HELOC uses your home as collateral. If you default on your HELOC, the lender may force the sale of your home through foreclosure and take any proceeds not claimed by the your primary mortgage lender. Because a HELOC is considered a “recourse loan” the HELOC lender may seek a deficiency judgment against you and may recoup its loss by garnishing your wages or placing a lien on a future property. Borrowers are personally responsible for paying off their HELOCs, even if the foreclosure sale does not generate enough money to satisfy the loan.

For a detailed explanation of HELOC defaults see:  What Happens to a HELOC in Case of Default or Foreclosure?

See also: How a HELOC Works