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A "deed in lieu" is a transaction in which the homeowner voluntarily transfers title to the property to the bank in exchange for releasing the mortgage (or deed of trust) securing the loan. Unlike with a short sale, one benefit to a deed in lieu is that you don't have to take responsibility for selling your house.
In a short sale, a seller will decide to submit a financial package, seeking a lender's approval to sell the property for less than the amount they owe on it. Therefore, the seller enters into this process voluntarily, which is not the case for foreclosures.
A deed of release literally releases the parties to a deal from previous obligations, such as payments under the term of a mortgage because the loan has been paid off. The lender holds the title to real property until the mortgage's terms have been satisfied when a deed of release is commonly entered into.
A short sale negotiator is someone who negotiates with a lender on a seller's behalf to secure approval for a real estate sale where the sale proceeds would fall short of the mortgage balance.
The third-party definition refers to an individual or entity in a transaction but is not the buyer or the seller. Usually, a third party has some role in the transaction. They do not have the same level of interest in the transaction, but they can receive some form of financial benefit from the transaction.

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A short sale is when a mortgage lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner. The lender forgives the remaining balance of the loan.
Short Sale. If you don't want or need to hold on to the home, then a short sale could be another alternative to a deed in lieu of foreclosure or a foreclosure proceeding. In a short sale, the lender agrees to let you sell the home for less than what's owed on the mortgage.
Third Party Approval means any consent, approval, permit, license, franchise, or other authorization, or a variance or exemption therefrom or waiver thereof, from a Governmental Authority or other Person.
What is a Mortgage Release? A Mortgage Release is where you, the homeowner, voluntarily transfer the ownership of your property to the owner of your mortgage in exchange for a release from your mortgage loan and payments.
In the event that you find yourself considering a short sale on your home, your lender will ask you for something called a "short sale package." This package is basically a set of documents that you use to demonstrate your financial hardship. It's how you make your case to the bank for your short sale.

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