Privately Financed Mortgage Notes

[Andrés Medina]

My parents are facing the following situation, looking for help.

They bought a home in May of 2000. Privately financed mortgage from the owner that they bought the house from with balloon payment due in 10years at 8% rate. In 2010, my parents and mortgage note holder extended an additional 3 years with another ballon payment due and kept the same rate 8%. Unfortunately the owner of the mortgage note died in 2013/2014 before any new agreements could be made and my parents had not been able to refinance. The note went to his estate and was "transferred " inherited by a niece.

Due to financial situation, my parents still have not been able to refinance. At 8% since 2000, they have payed almost 300k in interest. While still owing about 160k in principal. Can they renegotiate the mortgage note with new owner/niece of the note? What options do they have? Please help.