No criminal charges occurred, and the lender did not even file for any deficiency judgment.So she got away with screwing the lender. 

City of Chicago was named in the foreclosure suit and since there will be a deficiency after the sale all other creditors/lien holders should go home empty handed …again law and crook county don’t go hand in hand ..so if anybody had experience how those things work in reality I would appreciate feedback

If they can, correct the stated deficiencies and resubmit. 

It may be valuable to look into pursuing a deficiency judgement as a way of collecting as well.  

Very common deficiencies.

In the odd case where the numbers did seem to line up, I was not sure if there was something deficient with the property or neighborhood which allowed the property to sell so low below market value.

So there is a very large deficiency plus penalties and interest and late fees. 

(Bare in mind, a bank already did)  From a last line recovery stand point, you may want to look at a deficiency judgement once the first lien finishes a foreclosure.  

With the other options, of course, credit is an issue as are deficiency judgments and taxes...

I did also spend some time researching Foreclosure process here in Alberta, and I have not found anything to date that explains it as well as you do, and I appreciate this very much.Here are some follow up questions that I do have for you:1) I have heard that the court/bank has a fiduciary duty to sell the property at the maximum price in order to be fair to the borrower (as the lender can sue for a deficiency judgement after foreclosure.I have heard that any equity left over after the sale of the property will be returned to the mortgagor.