I am 3 months into a 12-month lease. The owner has listed the house for a "short sale". Does this mean that it is in foreclosure? What happens to my lease if the house is sold or foreclosed on? It doesn't address this situation in my lease. Do I lose my deposit? If the new owner doesn't want to rent am I protected?

No, but it could be. If the house is sold, even on a short sale, the buyer has to honor the lease. If its foreclosed the lease is voided and you will have to move. A short sale means being sold for less that the mortgage balance so it means the owner may be in financial trouble.

In a sale your deposit should be transferred to the buyer who will be responsible for returning it. Even though the buyer has to honor you lease he does not have to renew it when it expires.

I am 3 months into a 12-month lease. The owner has listed the house for a "short sale". Does this mean that it is in foreclosure? What happens to my lease if the house is sold or foreclosed on? It doesn't address this situation in my lease. Do I lose my deposit? If the new owner doesn't want to rent am I protected?
Thank you. Your answer helped a great deal.