If so, I would try a different bank because appraisals are very subjective. 

I would certainly encourage you to begin interviewing more banks about their "in house" or "portfolio" loan products.  

I would say get your affairs in order first ( pay stubs for the last 24 months, w2, bank statements etc). 

So I'm getting ready to head to the bank to hopefully set up a line of credit.

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!

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.  

Step 1:  Spend days, if not weeks writing down everything you want the DB to do for you, don't leave out any detail.Step 2: Find a reliable place to host your DB.