"Lien Stripping" HELOC vs. Home Loan

[Dollar Bill]

There is a thread that concerns lien stripping. It's the first time I had ever heard of such a term.

Does anyone know whether a HELOC is more prone to this "lien stripping" vs a 2nd home loan?

I always thought a HELOC would pretty much attach or is sucured by the property and records as a lien.

Anyone?

[B12]

Lien stripping is mostly applicable to auto loans, but does apply to any asset. The value of the asset is less than the lien, so the lien is "stripped" to the value of the asset.

The lien that equals the value of the asset is secured. The rest of the lien is unsecured.

There are limitations to lien stripping of which I am not familiar.

I would imagine that a HELOC and second home mortgage would be treated the same in lien stripping, but not sure.