Need Help 12 year old wrap around mortgage note

[Sergio Sanchez]

Hello  I have a wrap around mortgage that I am financed for someone at a lower rate - 

The idea was that the couple was supposed to refinance the loan in two years and now it’s been 12 years and still no luck -

I started to investigate because I read that it could be a legal issue if something happens to the house and since the insurance is under my name in the original mortgage then what happens to this whose situation ? 
My loan is at 7.875 and the wrap around mortgage is at 7.000 I’m thinking this was done on purpose - 

I have a few options but need help understanding my options - 

If I ask them to refinance and their credit is not able to get them approved I’m stuck  

I’m tired of not making any money on this and it looks like if I pay off the loan I would generate some profit from the interest rate alone which in this case is 7% 

If i tell the bank that I want to payoff the loan do I have to pay any fees? What’s the norm and then if that’s the case as a lender couldn’t I just ask them to put my name on the insurance since I do have a deed on the property ?

Would I need to refinance their loan and put in new mortgage stipulations ? 

The note is valued at 85k 

Thanks 

S~