It sounds like you are describing is a non-purchase money loan. Your wife appears to be the only borrower. Therefore, the lender can sue your wife and take sole and separate assets. Plus, perhaps, some community assets depending on the source. This is a very complex set of questions. Therefore, both you and your wife should talk to an attorney experienced in this area of law. I will be happy to give you some references if you call my office - 602-246-7106.
My best to you.
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Assuming that the 2nd lender on your spouse's home was not the party which foreclosed on her home, the non-purchase money security interest held by the 2nd lender typically allows for personal collection under that note. This is clearly her separate debt and her creditor would have no claim against you or your assets. The earlier answer correctly states that it gets somewhat complicated if you both acquired community assets, since her interest in those community assets might be vulnerable to access by the 2nd lender if/when it obtains a judgment against her.
I definitely suggest that you consult with a real estate attorney to review the facts in detail so you can have some peace on this front.
The creditor can come against community assets. You should talk with an attorney to see what you have at risk. Also, you should talk to that lawyer about possible ways to resolve the remaining loan.