Parker Construction Co., a building contractor, con- structed a single-family dwelling on a building lot in a suburban area. To obtain the necessary funds to build the house, Parker Construction Co. entered into a mortgage with Green Mortgage Co. for the principal amount of $85,000, repayable in monthly installments of $900 each. Some time later, Parker Construction Co. sold the property subject to the mortgage to Baker at a purchase price of $155,000. Baker paid Parker $70,000 cash and assumed the mortgage. He continued to make payments on the mortgage while he possessed the house, but two years after he had purchased the property, he was transferred to another city by his employer. He sold the property at that time to Brown, who assumed the mortgage and paid Baker $160,000 for the property. The mortgage had a principal balance outstanding of $81,500 at the date the property was sold. Unfortunately, Brown found herself overex- tended financially soon after she had purchased the property. She was forced to let the monthly mortgage payments fall into arrears in order to pay more press- ing debts. In spite of repeated requests for payment by the mortgage company, Brown refused to do so. Eventually, Green Mortgage Co. was obliged to take action. Instead of foreclosure, however, it brought an action against Parker Construction Co. for payment. Discuss the possible reasons why the mortgage company decided to take action against Parker Construction Co. rather than institute foreclosure proceedings. On what basis could it do so? Discuss the rights and obligations of the parties in light of this action by the mortgagee.