Our house is at risk of being repossessed?

The refinanced. They aren't magically being asked to pay again.

You don't understand the problem is part of the problem.

I don't think you understand the problem, either. They can't arbitrarily be "told to pay it again." Chances are they've remortgaged somewhere along the line and pulled a bunch of the equity out in the process - or else took out an interest-only loan.

did they refinance since 1989. Bet they did. You need a lawyer and FAST

They are not telling you the whole story. Three possibilities - they either took out a loan on the house - so they owe the additional amount, plus interest or they refinanced and owe more in interest and possibly any additional amount they took out when they refinanced or they are so stupid that they think the original loan for $60,000 is all they have to repay. Obviously, a loan for $60,000 is not going to require only the $60,000 repaid. Did they forget about the interest? The original loan documentation would state how much money is owing during the term of the loan. Perhaps, they should read it again and refresh their memories. It is very realistic that a $60k loan would result in another $60k owing over the course of 20 or so years. If foreclosure proceedings have already begun, then they have breached their contract. If they are going to be able to keep the house, they are going to have to pay the payoff figure, which could very well be the full amount - $60k.

Sounds like your parents had an interest only mortgage, which after the term of paying interest only the original amount doesn't change as nothing was paid towards that... only the interest element

Lawyer time. Sorry.

Either its a bank error and you need a lawyer to sort it out. Or more likely, your parents took a second mortgage for money or a home equity line, and they have to pay that off.

That sounds terrible, not to mention a bit shady.