question about the deed

When a seller signs the deed at the kitchen table over to me, what should the sales price be?
My intention is to negotiate a short sale. I usually record the deed at the courthouse to protect my interest. I use the current loan balance plus the reinstatement amount as the sales price on the recorded deed.
After the bank accepts a discounted (lower) payoff, I simply instruct my title company to execute a HUD-1 for the lower amount and pay off the lender. Am I handling this corectly?

New member. Thanks for your patience. What is a short sale and what is the advantage, what is the basic ideas and procedures for them. I have 2 rental income properties and what to do different investment strategies.