A home may be in the foreclosure process while it is listed a short sale. For example, if a Notice of Default is filed, the seller has 90 days before the next step in the foreclosure process can occur. If, after 90 days, they have still not become current on payments, the lender may file a Notice of Sale for 20 days down the road. In actual practice, that timeline is often extended by moratoriums and agreed postponements. So yes, a home may be listed as a short sale, and yet in the midst of a foreclosure process. Once it is foreclosed and "sold on the courthouse steps" though, any short sale attempts are terminated.
As Lela mentioned, FORECLOSURE IS THE PROCESS. DIstressed properties actively for sale are either a "short sale" (in some stage of the foreclosure process - which still involves the seller but requires lender/bank approval), or Bank Owned/REO (Real Estate Owned) which is a home that has been foreclosed on completely by the bank/lender. The homes that have been foreclosed on are taken back by the bank or often sold at auction and can be purchased by investors as well, so you may see them referred to as "Corporate Owned" or "Investor Owned". It is best to consult your REALTOR when making offers on distressed properties as there are different issues and risks with each type of sale. It is very important that consumers be educated in these types of purchases.
Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
No. In a short sale the owner of the property and his lender are involved with the sale. (the owner initiates the listing agreement) In as foreclosure the bank has taken possession of the property and offers it up for sale via the listing agreement.
All the best,
I hope this helps you.