What can the lender do if they want to ensure security in an assumption agreement?

In an assumption agreement, the lender typically seeks to ensure that they have security regarding the obligations under the mortgage when the buyer assumes the loan. By prohibiting the mortgagor and buyer from terminating the agreement, the lender protects their interests because the mortgage obligation continues to be enforceable and accountable even if circumstances change.

This approach ensures that the lender maintains control over the agreement and can take further action if needed, such as enforcing the terms or ensuring that payments are made. The assumption agreement effectively transfers the obligation of the debt to another party, but the lender must still have measures in place to guarantee that the original terms remain binding and that they can pursue collection if necessary.

The other options do not align with the lender’s goal of maintaining security in the assumption agreement. Allowing the mortgagor to sell their interest without controls could weaken the lender's position, and terminating the agreement at will would undermine the enforceability of the contract. Not following up on agreements made could lead to defaults and losses for the lender, indicating a lack of diligence in managing the mortgage. Therefore, maintaining a stance that prohibits termination without approval ensures that the lender's financial interests are secured and protected throughout the duration of the agreement.