Being that she’s on the mortgage, does she have any leverage to pursue any legal action be put back on the deed, and consequently refinance and get the house from me?

Start the talking and documentation so if you decide to take further action you have a nice paper trail.  

@Nicholas Ludwiczak -- sounds like an OK trade off, as you're in control of that path!

The houses zoned to this other school district trade at a substantial premium and will skew the ARV or After Repair Value.

And pick who you like best, so has a good action plan, and who cares about you (by answering your calls and reachable).

After you are conditioned to it a little bit, you get used to it and it becomes acceptable because it is the trade off to be in a place where you can do what you want, within reason. 

In my area if you advertise a trade your not licensed to do you can get up to a $10,000 fine. 

A tenant that is Johnny-on-the-spot with keeping up my property, pays on-time every time all the time, and virtually never calls, is worth something to me, and I'm willing to trade some dollars for that tenant.

These are traded in USD or, sometimes they sold by the developers in pesos (MXN) when they're primarily marketed at Mexicans.

Like with any choice, there are trade offs.