Buying non-performing note of abandoned property

[Rob Street]

I am interested in buying a non-performing note of a property in California that is tied up in BK and has been abandoned for several months. Ultimately I would like to foreclose and acquire the property. The former owner (borrower) has left the country and is unlikely to dispute any foreclosure proceeding. The property has no equity (worth less than 50% of the first) and thus is of little interest to the BK trustee/court. There is no 2nd and some relatively small liens and tax default amounts involved.

Can someone on this forum please explain 'credit bid' and how that comes in to play at the foreclosure auction? How does the amount that I pay for the note affect the outcome? For example; if I pay $100k for a note of $300k and the property is worth $150k can I bid above what I paid for the note at auction (without adding any additional money) since the original note was for $300k?

Thanks for any input!