As we first reported, Octo's dad -- who holds title to the house -- was required to make a $450,000 balloon payment on March 10 but didn't do it. Daddy and Octo are also behind $4,139 for March.
The lawyer for Octo's dad just fired off a letter to the attorney for Amer Haddadin -- the man who sold Octo's dad the house and holds the note. Octo and her dad are willing to pay the March installment and guarantee they'll make payments for the next few months ... if Amer backs off in the foreclosure department.
The Octolawyer is asking for a few more months before his client has to make the final, balloon payment. During the grace period, Octo's dad promises he'll apply for a new loan.
Bruce Weiner, attorney for Amer, tells TMZ his client is inclined to work with Octo and accept the proposal. As Weiner put it -- brilliantly we might add -- "I'm not out to hang the Octomom."