How does a Equity Line of Credit work?

I purchased a home on 4/14/2014 and the builder actually is carrying my loan 4 me. I was going 2 put down $53k which was from a IRA that me n my x husband had 2gether. We closed n recorded the mortgage n deed that same day. But there was a problem with getting the monies from the IRA n the builder has not received the $53k n is now coming 2 the home threatening me with going 2 the district attorney office 4 fraud n that he plans 2 overturn the deed n evict me n my family. I was wanting 2 try 2 get a Equity Line of Credit n pay him 2 get a new lender n b done with him. The only thing is the mortgage was recorded 4 $125k. I purchased the house 4 $175k. I would need 2 pay him off $175k or Can I get just $50k (thru a Equity Line) n pay him that 2 satisfy him n continue making my mortgage payments?

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