When you say "my mortgage is assumable," my understanding was that it's usually either a qualified assumption -- where she would have to qualify on her own in order to transfer it and take your name off completely -- or some allow assumption without qualifying, but then you may remain liable until it's paid off, like the mortgage company could come after you if she defaults any time throughout the entire life of the loan.  

The attorney said that if for example, I were to make out a contract that in the sellers line add in "And or assignee or nominee" that I can be sued if the buyer of the contract defaults on the purchase of the house. 

As @Jay Hinrichs stated about Oregon, the defaulting party will have to deal with all liens.

He is now in default for over a year (I am still making payments on time on the 1st). 

Hi,I have just started my marketing efforts here in Southern California, and I'm targeting homeowners who have received a notice of default or notice of sale.

In MD if a property is owner occupied and in default with a bank, you do not want to go near it.

The owner still owns it, and the bank still has to foreclose, just like any other loan in default.  

@Ron Cornwell - the BP calculators for buy-and-hold properties default to 5% I believe for CapEx and Maintenance each.

DEFAULTS: If buyer defaults under this contract, any and all monies deposited by buyer(s) shall be retained by seller as full liquidated damages.

This must be why, at the peak of the recent recession the UK peaked at a 3% mortgage default rate, which they considered crisis levels, while here in the US we peaked at 9%.