Spouse dies; wife not on the title or mortgage loan; what happens?

A friend of mine just lost her husband due to heart attack; he purchased home in 2007 in his name and wife was not on title or mortgage loan; they have been married for 5 years and live in Arizona which I believe is a community property state.

The home now has negative equity compared to oustanding balance and loan is an adjustable loan.

Can Wells Fargo (mortgage) come after her for home balance?

She is thinking about letting home go into foreclosure due to negative equity and that and she cant afford it; she was also thinking about doing a loan modification, yet not sure if that can be done seeing that her name is not on the loans or title??

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