A foreclosed property is owned by the bank, listed by a real estate company, and the bank wants to sell it.
With a short sale, the home is still owned by the seller. The seller is having problems paying the mortgage and can't sell the home for what they owe on it. In this case, the seller gets an offer on the property and then attempts to get the bank to accept a short sale. The bank is going to be "shorted" the full amount of money they are owed on the home and the seller must prove a hardship.
In some cases, it can take the bank months to respond to a short sale offer. With foreclosures you typically get a reply on your offer within a few days.
In each situation, the homes are sold as-is. The bank won't usually do repairs on a foreclosure property and with a short sale the owner doesn't usually have the money to do any repairs.
The amount of money needed is going to depend on the loan type (FHA requires 3.5% down) plus the closing costs. I am not sure what closing costs are in your state.
Hope this is of some help.
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA