In my area, if the house is foreclosed on and they want the tenant to vacate, they have to pay $10k per adult on the lease to get them out.  

Bigger Pockets has some great podcasts that are full of great info and entertaining.  

I would gladly entertain an owner financing arrangement.

The owners are my parents which is why they would even entertain a silly idea like this.)My question is:  What are the steps my company would need to take to gain access to this HELOC?

So will see. but if I got an offer on it once I have owned it a year or two so I could get cap gain or 1031 I would entertain that  other wise just see how it goes.Its in Eugene Oregon so pretty big metro area. with lots of people and this is I am sure the least expensive place in the entire region to live short of moving back in with momy and daddy

They are not going to entertain a wholesaler. 

Peabody Place development that redeveloped the area just before South Main with shopping, entertainment and dining. 2.

Like @Steve Babiak mentioned, call around to small-mid size community banks and see if they will entertain 20% down.  

Even if adult kids in the basement is a norm, adult kids with families in the basement is still not in my view.As the generation gets employed, forms families, and is able to save the downpayment, I think they will buy in many markets, they are just delayed some in my view by economic and other factors...

But if there's a bedroom being used as an office, or a former kid's bedroom now being used by an adult, it can come into play.