If you are on the short sale process you must have submittted your financial statement, hardship letter and incme and asset documents? If you still live in the property you may qualify for a minimum of the HAFA $3,000 money. You said there was a second mortgage and typically you would not get a deed in lieu offer with other liens. If you have an offer of deed in lieu is the lender offering you any money to sign? Either your attorney or agent handling the short sale process should be talking to this lender. You need find out all your options before choosing the deed in lieu. No one can really consult you on an open forum like this one.
Best of Luck,
Eric Erickson, CDPE