What is the difference between a short sale and a deed-in-lieu?

These two ways of exiting a property vary greatly.

In a short sale, the owner lists their home with a Realtor, and the lender agrees to accept less than the amount owed on the loan.  The client needs to help market the home, and finding an agent experienced in the process is advised by housing counselors.  A deed-in-lieu is an agreement between a lender and an owner, and typically the lender requires that all personal property will be completely removed and the home is in broom swept condition.