What happened to" HELOC " in the short sales proce

[Ti Hon]

I have heard several different stories in regards to the " Home Equity Line of Credit " in the short sale process in which the lender of the HELOC still can put liens on your assets such as your IRA accounts .. is it true ? The explanation I have heard is that since the clients are taking " cash " out .. therefore, the lender can go after the assets.

Also, I have read in this forum .. about 1099, IRA for 982 ... ect .. does it make any difference whether the property is owner-occupied or investment property ?

Please advise. Thanks in advance.