The way you asked the question implies you don't currently own a property to use as collateral for a HELOC. 

I know some people are comfortable to deed after financing into an LLC, which is technically mortgage fraud, because you remove the collateral from the bank...

The downside if you plan on defaulting on this or any loan you have an account with is cross-collateral. 

You need to remember that the reason your cash value still earns dividends when you take a loan is that it is serving as the collateral for the loan you are taking against the policy. 

Refi w/o employment check, just a drive-by.I feel your pain and understand though.That may be true Jeff, but you failed to mention the fact that they are holding your first born as collateral!

You pledged the entire parcel as collateral for your loan, therefore must obtain a partial release from your mortgage companyObtaining a partial release if difficult at best especially if you have a government back mortgage as there is no incentive for them to do so

Banks are going to care about debt service coverage, asset coverage, and collateral more than they care about your paydex score, so don't invest too much time manipulating your business credit rating if you could instead be finding great business opportunities.

Note that when folks say "security" in this context, they typically mean a property that acts as a collateral for the loan. 

Texans can establish lines of credit using up to 50 percent of the value of their homes as collateral (as opposed to the 80 percent allowed on standard loans)."

:-)  If you go through with this, make sure the Escrow Company REGULARLY provides you with insurance updates to assure your collateral is protected.