A HELOC can be used as leverage to invest into real estate, but in hard times it can also act like a 'free' reverse mortgage at the drop of a hat. During every economic crisis, people are laid off, governments shut down, some are furloughed or suffer a decrease in income. This strategy literally prevents people in those situations from entering into financial ruin and foreclosure. The HELOC can be used to pull the equity from the home
to pay any bills, and some HELOCs automatically pay one's interest payment!