Connie this is not true.. there about 15 states that require state license and NMLS in CA you can do HML with a RE Broker license legally.. 

Not always true, however typically HELOCs will go to a max loan to value ratio of 85, sometimes 90%.

Always ask for references and examples of similar projects (pictures)The Red Flags you have to Avoid:Lowball bids (too good to be true often is).Poor communication or delays in responding.Hesitation to provide references or sign a detailed contract.Cash-only deals or pushy behavior to secure the job.

So bottom line they got away with it and are living in a beautiful safe clean country. 

And it's one of the few, true, "set it and forget it" investments out there, as there is no maintenance and virtually no risk - the only risk is a US Government default (which would be apocalyptic and thus one of the few things our gov't would never do). 

It's turned into a money pit, but at the same time it's on a beautiful .90 acres with a view of the mountains and a pool that I had remodeled.

I am going to go shopping and buy everything and then go back to her house and I am going to have her supervise me all the way through till I have a  beautiful cake on a plate  . . . 

It is important to note that the information provided by the other poster above is only true when you purchase the property first as your primary residence.

This is true.

I was able to buy the house with $12,000 down and I paid some closing costs for a beautiful, turnkey house that needs absolutely nothing.