Deed in Lieu of Foreclosure vs. Short sale

Short sales and Foreclosure Solutions: Taxes on real estate short sales and foreclosure: "Q 11. How is a deed in lieu of foreclosure treated? A For non-recourse debt, the amount 'realized' is the balance of the loan. This means the borrower will have capital gain or loss, but will not have debt relief income. For recourse debt, the borrower can have both capital gain or loss, and debt relief income. The result depends on whether the value of the property is more or less than the loan balance. For recourse debt, the loan balance or the property value, whichever is less, will be used in calculating capital gain or loss, and the borrower will be liable for debt relief income tax on the loan balance minus the property value."