Investment Property Short Sales

We paid 130k for two condo's (each), and 225k for a 3 bedroom half duplex (all investment properties) back in June of 2006. We were given "equity" in some new North Carolina properties by a now defunct Mile High Capital Group (in Denver) after we gave them $52,500, and they went bankrupt. We live in Colorado. Because I wanted something for my 52k my wife and I decided to take "equity" in the Avera Place property in Raleigh NC. We have lost well over $100,000, and the three properties that we own are upside down a total of about $175,000 (this is after we were given a 10% equity position in each property). We owe $117,000 on the two one bedrooms, and we just received a ridiculous offer of $60,000 by a cash buyer. The offers have been submitted but I'm sure Wells Fargo won't take a $57,000 hit on each property. If we can't short sell the properties we are considering a deed in lieu (give the properties back and walk away). Does anyone have experience with either short sales, or the deed in lieu process, and if so do you know if Wells Fargo will come after us for the deficiency? My Realtor tells me that in the case of a short sale that we won't move forward if their intention is to pursue us for the shortage. I almost wonder if the deed in lieu route is the best way to go. My credit has always been outstanding, but this ordeal will ruin it for years. I've also been told that the short sale is easier on your credit than a foreclosure or deed in lieu. We have three investment properties that we are trying to dispose of this way. I guess we will know what WF response is soon enough. Any input is appreciated.