The bank decided to purchase the property and now it is sitting at a starting bid of $56,833 and has sat in auction for 46 days I believe. 

hey Phillip, try these locals: Resource Bank, Home Bank, Gulf Coast Bank, Bank of Louisiana, Fifth District Bank, Metairie Bank, Hibernia BankGood luck!

Not too sure on the jurisdiction in the part your 4-plex is in but I would totally look into. 

Guessing AP wouldn't apply as in most jurisdictions it involves paying the taxes on another's property.

That being the case, and in the event that a HUD home/foreclosure is purchased, would the bank pay his fees? 

.- Stated income HELOCs are starting to come back, local to me, regional banks only.- There are also portfolio loans that'll just use appraised market rents to document income, no tax returns needed.- A commercial loan might be an option.- And, last but not least, there are of course hard money loans.

You can cash out without seasoning with a portfolio lender or any bank that doesn't sell their loans to Fannie Mae or Freddie Mac.  

This would mean the Bank would see the purchase price as $300k, so the seller would need to come up with Downpayment plus $250k. 

Personal guaranty really depends on relationship with bank and secondarily, your net worth.

Also, what type of bank or lender would loan you money on this type of investment??