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Bitchy grandmas aren't the best. My girlfriends grandma, my god. She is the most negative person I know. But you know what? They have hearts. Somewhere in their, I'd imagine she cares. And your words may have gotten to her. You should call your grandma and try to make amends to her.
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Get a lawyer. You can beat this.
Trust me. Facts are facts. You will get a stay of execution on the property i suspect.
If the majority of the payments have been made it will then be sold. And as part owners with tenants rights you should be able to stay.
But i guess it would have to be sold should you not reach an agreement.
But thats why you get a good mouth piece.
You get into court and put her medical history onto the record.
You put every documented payment on the table. Get some resolution here.
Obviously things have gone wrong here. But hopefully a different medication and a bit of mediation you should be able to sort this dreadful mess out.