My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.
However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.
Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.
You might want to speak with an attorney before maxing out your HELOC.
