Spousal mortgage, underwater property - what to do?

[Leonid Sapronov]

Hi all! Here I go again, reaching out for communal wisdom. Asking for a friend, who is in a tough spot: her husband passed away unexpectedly, leaving behind a rental property that is under water. It's rented and just about pays for itself, but doesn't cashflow. Mortgage balance is 120k, value is 80-90k. She does not want to keep it, partly because it's under water, partly because she doesn't have the time to manage it (husband was in charge of PM). A few questions:

1. Husband bought the property before they got married (it was his primary residence initially) and everything is still in his name: title, mortgage. Is this mortgage automatically hers now?

2. In her situation, what would foreclosure look like? What would a short sale look like? Does she need to worry about the usual ramifications of going through foreclosure?

3. Are there any arguments in favor of keeping the property?

4. What's the easiest/best/recommended way for her to disassociate herself from the property without risking financial/credit jeopardy?

I've reached out to a couple of estate planning attorneys, but wanted to post this here as well, since BP has provided invaluable advice in the past. Thank you!