The debt remains, however the lien holder cannot hold the property as collateral any longer, unless the prior owner files Bankruptcy within the redemption period, and sometimes beyond that period.

As per wikipedia's definitionA home equity line of credit (often called HELOC and pronounced Hee-lock) is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's equity in his/her house (akin to a second mortgage).

You cannot personally guarantee any loan to your IRA, nor secure a personal loan collateralized by an IRA asset.  

The house is the lender's collateral, how do they know anything will be level, plumb or square, that windows open and close. that doors fit?

It's essentially the same thing as a HELOC, but uses the assets in your brokerage account as collateral instead of a home.Some points to note:These types of loans are only available in managed brokerage accounts, so if your stocks/bonds/ETFs are in an eTrade account (or whatever), you'd need to move them first.These accounts typically require something like a $100k to $125k minimum asset value to approve a loan, so if you've got less than that it wont work.Most managed accounts cost a 1% annual management fee, so think of that as an extra 1% on top of the interest rate.These accounts typically let you borrow up to 75% of your equity, but due to market fluctuations, you should consider imposing your own, smaller limit.Interest rates are comparable to a HELOC, plus that extra 1% management fee, and like a HELOC, it's a revolving line of credit vs a fixed, monthly payment. 

@Guifre Mora @Will Barnard @Brent Paul thank you all for you guidance, honestly I did not know much about hard money loans at all, I just always though it was a loan from an individual with extremely high interest rates.After looking into it it seems they mostly care about your down payment and have if the loan as  collateral, seems to me that credit is not a huge issue,As my credit is not the best at the moment.

And i did think about using my other properties as collateral.

You can also borrow money with many private investors and put your 1st home up as collateral.  

However, this means they do things like hold your personal credit hostage as collateral, and charge very high interest rates!

I also understand the value of the knowledge, systems, software, marketing collateral, and standard operating procedures we have spent countless hours developing over the past 13 years.