You would have to consult with a local attorney to see what kind of rights the neighbor property may have accrued even if there is not a recorded easement. 

I get your concern that equity is being stripped by accrued interest and fees on the 1st but you can only stop the bleeding by foreclosing and trying to sell.

You may be preyed on if you get too desparate but with a 'hard money' loan accruing interest, the panic is understood.

The daily fines start accruing during this period.  

here is what i've used in the pastDemand Promissory NoteFull Name: ______________________________________________________________________________Residence Address: _______________________________________________________________________(Hereinafter referred to as the Borrower/s)Full Name: ______________________________________________________________________________Residence Address: _______________________________________________________________________Relation to Borrower: ______________________________________________________________________(Hereinafter referred to as the Co-Maker/s)Full Name: ______________________________________________________________________________Residence Address: ________________________________________________________________________(Hereinafter referred to as the Lender)For value received, the Borrower hereby unconditionally promises to pay to the order of Lender the sum of ______________________ (PhP________) together with interest accrued at the rate of __________percent (______%) per month on any unpaid balance.Payable on DemandThe entire outstanding amount shall become immediately payable upon demand by the Lender or holder of this Note, but demand shall not be made before the _______day of _____________________20____.Place of PaymentPayment shall be made at the above stated address of the Lender or at such place as may be designated from time to time in writing by the Lender or holder of this Note.

Generally, you take the unpaid principal balanceand add accrued interest and late charges and subtract or add the escrow account balance to come up with the payoff.  

With the mortgage of $4,700/m that leaves nothing for accruing the massive balloon payment. 

I don't accrue any equity to re-leverage it.

Accruing month to month payments with buy and hold vs cash sale for flipping right?

What if the lease signed by the tenant states that the SD does not accrue interest?