if the housing actually crash's like 08 your Heloc will be frozen just like 08 when almost all helocs were called or frozen.you would need to evergreen it before the crash.

(I usually recommend folks privately just because I don't know what my feelings about people will be in the future, so I don't like to leave posts around with recommendations frozen in time.)

2) Due to the fact that short sale can take several months can I spend this money or they are frozen till closing?

I tried reaching out to some hard money lenders and because I used copy and paste my account was frozen after only 3 emails.

Market has frozen, at least on the higher end above $700k.

to me there are credit lines and then there are credit lines.IE the vast majority have a heloc on their personal home or maybe a rental.. with a credit union local bank big bank etc.then you have credit Lines that are unsecured for business purposes .I have not heard of credit lines being frozen yet.. but I sure saw it a ton in the GFC.. and very few folks that get them on their personal resi or a rental.. actually read the fine print and therefor are shocked when they go to access their heloc for this deal they want and its frozen.our facilities are on one year terms with a mandatory 30 day rest per 12 months.. its been that way for me for 20 some years LOL.. mine are unsecured and of decent size i am not talking 50 to 100k..

Yes good tenants won't be a problem.One problem that I see is when local gov't starts telling people that their mortages may be frozen for upto 90 days.

I know the impact firsthand, I work for a financial services company, they have been laying off employees and the hiring has been frozen. 

@Renee Lee Im in Napa and most of my lenders have frozen HELOCs.

You could sell it to their attorney as an insurance policy to get their fees paid, since I bet a lot of the seller's assets are frozen, because of you know...drugs money