They are now saying we left without terms and taking us to court.  

I have been writing letters, used a notary (free) to notarized my letter and made copies for myself in case I bring her to court.

The Illinois Supreme Court has already ruled that pension and retiree healthcare benefits cannot be cut. 

As you mentioned you could always sell at the court house. depending on what the value of them property is you may be able to sell at the court house steps.

This hasn't been proven out in court yet, and Dodd-Frank is riddled with phrasings along the lines of "the creditor and all affiliates" (one of which you'll even see in the small creditor flowchart I link below).

This could go to court or not but the lawyer did have some good advise on these things.  

This would be a matter for the court system.

Already had her court date.

If there is no Court action the loan itself would possibly be removed after 7 years from the first delinquency that was never again paid current.Her credit today is less than Zilch! 

I recently found a guru offering a course about this strategy and while I will not be giving him any cash, the strategy has intrigued me as I've never heard of it.He says to find properties that are on the market or under contract and run them through the county court to see if there are any judgments on them.