Is this a deal or a dud?

[Kamyar Farhang]

I found a distressed property with the following information:

• AVR $400 K
• Lines $40 K
• Mortgage balance is $285 K
• Repair estimates $50 K
• Asking price $340 K
• 2360 SF
• 6 beds 3 bath
• Okay neighborhood
• Owner motivated, filed for BK recently and heading for foreclosure

I want to know what is the best way to approach this? Is subject-to an option? I have never done one one of these what is the best way to do due diligence and make sure I am not missing anything? Any good resource to learn nuts and bolts of subject-to deals? any guidance is greatly appreciated.