If he is willing, he will need to sign a quit claim deed in order to release ownership in the property. (The loan will be paid off at the time of sale releasing his liability off the loan.) He must be off of title, then the property can be put up for sale.
She may want to consider a little payoff to him if needed. The fact that he is in jail is not good...Often times judgments are filed for Attorney's fees if the client can not afford his Attorney. This will put a lien on the property and must be paid off at the time of sale. (Having parties sign a deed in jail it actually very common. parties will sometimes do this in order to avoid potential liens placed on the property for both Attorney's fees and civil judgments)
Contrary to other posts, he is able to sign a deed in jail.
I have done this a couple of ways...You will need to call the jail and determine the best method.
1.You can send the deed to the jail. There is usually a Notary available at the jail for use.
2. You can send a Notary to the jail with the deed. A Notary is able to use the inmates jail ID as identification. (I have done this personally, good luck finding a Notary willing to do it though.) The jail makes it a safe process, but the waiting is very time consuming. I was also a little freaked Notarizing for a prisoner.
3. If there is an Attorney involved already, she/he can come in on a "legal visit" and get the deed signed an Notarized for you.
Once the deed is received, file it with the county recorder ASAP.
You may want to consider identifying a closing agent now to use for the sale. They can prepare the deed for you and also pull title in advance to see if he has incurred any judgments.
(if he has, have him sign a authorization to release information to his wife or the closing agent so the payoff can be ordered.) Please do not use a deed from the office supply store! If prepared improperly, it can cause more harm than good.
Please note that if the property is located in a community property state. There must be a way to deed of the property indefinitely.
In a state like MO and FL (homestead property only) for example, the spouse must deed of on EVERY transaction. They always have an interest in the property that can not be removed. A deed between spouses is useless.
However in CA, a spouse can deed off one time and will relinquish the interest in the property indefinitely.
10 Years in Title and Escrow in Various states.