First you just have to upload the image and save it locally in a temporary file or in MemoryStream. And then create an object from it BitmapImage.
You can upload an image, for example, as follows:
Uri urlUri = new Uri(url);
var request = WebRequest.CreateDefault(urlUri);
byte[] buffer = new byte[4096];
using (var target = new FileStream(targetFileName, FileMode.Create, FileAccess.Write))
{
using (var response = request.GetResponse())
{
using (var stream = response.GetResponseStream())
{
int read;
while ((read = stream.Read(buffer, 0, buffer.Length)) > 0)
{
target.Write(buffer, 0, read);
}
}
}
}