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.