Need help with "Subject to" deal

[Garrick Solberg]

Hey all,

I have my first potential deal if I can get it setup "subject to". Here are the details:

First mortgage is currently at 211k
house appraised for 270k, but really comps to 240k
Has a renter in the house right now for 1400/month (ouch!)

The owner is considering selling the property subject to, or the loan is assumable as well. Does the spread seem large enough? I know that the house was listed at 240k and didnt sell, so we know it cant get that. Maybe listing it at 225k would get the home sold quickly.

The seller is asking me to send him an explanation of how the subject to process would work (as in the steps to be taken). I'm not entirely sure myself, since I have not set one up before. Also, the seller is long distance, so he wouldn't be here for a closing. Does anyone know of a good resource that gives a good step by step outline of the subject to process?

Thanks much!

Garrick Solberg