Hypothetically, one could let the property foreclose and have an investor buy it at an auction, but it's very unlikely that you wouldn't know about the fact that the foreclosure has gone through, because you'd be receiving certified letters to that effect.
Your question isn't 100% clear, because you're mixing two terms.
Is it a short sale or a foreclosure? A Foreclosure would be a public auction, so ANYONe could buy it there, including the agent's "investor".
Clarify exactly what your concern is and i'll try to help you.
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