Max Purchase Percentage of UPB

[Chad U.]

I'm looking at picking up an NPN for $153K, and I just discovered the UPB is $144K but the Payoff is $176K ish. The seller's BPO came in at $215K and a local realtor has given a CMA of $277K, but conservatively is worth around $240K. The foreclosure process is allegedly well under way, and slated within the next 90 days.

The question is what are the repercussions of purchasing this note at a price over the UPB? I realize that if this were to go to a short sale or auction, there would not be much room for profit. However, I'm told that properties in this price range rarely sell at auctions and should revert back to REO where we'd list and sell as-is.