balloon payment due in 2 years

[William Krostek]

I sold my parents house  after they died 12 years ago and kept the paper a 6%.  The person that bought it fell in hard times and I have allowed them to just make interest payments instead of foreclosing as I live thousands of miles away and I don't want the house back.  I'm in over my head as I am new to this and don't know what to do.  I tried to get them to refi but they have a history of bankruptcy .  The note closes in two years with a balloon payment of $400,000  due.  If they could refi I'm sure they would have at a lot lower interest rates.  Any ideas of what I should be doing? the house is in California.