If you fail to make payments on your home equity loan or HELOC, it could result in default and ultimately foreclosure. The actions taken by the home equity lender will depend on the remaining balance of the loan and the current value of your home. If you have a significant amount of equity in your home, your lender may initiate foreclosure proceedings, as it has a greater chance of recovering its investment once the primary mortgage is paid off. The greater the equity, the more likely your lender will opt for foreclosure.