If the property was sold in 2012 - most likely you will receive form 1099C for 2012.
The sale price - most likely - will be reported as FMV of the property.
So your expected forgiven debt would be $106,000 (loan outstanding) - $60,000(FMV) = $56,000.
So your adjusted basis will be $90,000(current basis) - $56,000(forgiven debt) = $34,000
When you will report the sale transaction
$60,000(assumed sale price) - $34,000(adjusted basis) = $26,000 - that will be your gain.
Please be aware that above are very raw estimate.
Most likely - you will need report all these on your 2012 tax return