Help? Unpaid Balloon + Modification? Nightmare? Dream? Refinance?

[Maurice W. Evans]

Anyone got any ideas.  Trying to help a family.

Tampa Florida

March 20, 1998 a 50-year old and her husband (and mother?) get a private mortgage from a "friend" (daughters boyfriend) with friend's father and mother as mortgagees.  

Homeowners put $10,000 down and get financing on $60,000 for 10 years at 10%.    There is a $54,563.41 balloon payment on principle due April 1, 2008. 

That balloon was never made.  No late or missed payments by the owners since the mortgage. 

may 5th, 2011, under threat of foreclosure son issues himself as mortgagee a forced 10 month simultaneous addon of $3,102.60 to the mortgage as a result of him redeeming property tax certificate. This basically was treble the amount of taxes due to attorneys etc.  Full due by March 1, 2012. This loan is stated as homeowner affirms it is "for commercial purposes only".

August 24, 2011 same thing happens...new mortgage added on with son as mortgagee for $5253.35 however for 18 months @ 10% full due by Feb 1. 2013. Also again affirmed as "for commercial purposes only"

All payments, always made on time.

The homeowner has been advised on several occasions by the mortgagee to not sell the house or refinance without speaking to them first.

The homeowner (husband and wife) are now 70+ years old.  The mother who was also on mortgage has passed.

2 years ago, the wife moved to another state to be cared for by daughter. Husband still lives in residence.

Homeowner asked for balance statement showing payments and amount due as she felt she should be close to pay-off.  Requests.were.ignored.for.almost.two.years.

2 months ago, mortgage holder sends paperwork with amortization schedule and loan modifications to homeowner.  Agreement says that homeowner has requested a loan modification due to not making balloon payment 10 years ago.  (they didn't)

Balance due is about $37,000.  Modification creates new 30 year mortgage for that amount at 10%.  In addition, the lender redeemed a certificate (before the homeowner had a chance) in 2015 in which he is demanding immediate payment (I am guessing he is going to do what happened last time if it is not immediately paid to him).  

Homeowners also have not yet paid 2018 property tax which will go to auction as a certificate in may if they do not pay in time.

Guessing around 1800 sf, 4/2 single story block house -- lot is 50x129

County market value $140,701   

county assessed value: $66,214

comp neighborhood value: $190,000 - $210,000

Low Fixed income. 

No Cash

Checking for them, but likely low credit score. (no derogs just nothing positive reported either for decades :/)

4 living children, not with enough income/credit for co-sign

creative options?

Thanks in advance to all.