|She is not responsible to make any payments, however, if he defaults, she loses the house because she is on the title.|
The note makes your responsible for payments, the mortgage puts you on the title and allows a default of the note as colaterol to pay.
If he decides he's going to stop making payments, does she want to keep the house? She can possibly try to qualify for a loan on her own AFTER the divorce. Not sure of the marital rights in your states, but she may have to get the divorce to get it all by herself, or he would still be on title.
Better scenario since it's a seller's market is to sell it and get the money and get the dicorce. Then she can buy something she likes and maybe more affordble. jmo