Wells Fargo has stopped granting extensions for distressed homeowners to complete short sales, a move that will expedite foreclosures.

In a short sale, a home is sold for less than the amount owed on the mortgage and the lender accepts a discounted payoff. The loss to the lender can be smaller than if it had to foreclose and liquidate the property.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.