Instead of waiting for foreclosure, some property owners may just give back the deed to the lender and walk away. Deed in Lieu of Foreclosure is not a right of owners, the lender must agree to it. If they do, there will not be a short sale. The property becomes bank owned and the lender may auction it or hire a listing agent to sell it for them.
A Deed in Lieu of Foreclosure agreement does not protect the homeowner from subsequent judgements levied against them by the lender.