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and how do balloons work? Any potential dangers for borrowers?

A balloon mortgage is a loan that has been given a deadline. The borrower makes monthly payments for a set number of years. On the day the loan matures the remaining balance has to be paid in full to the lender (seller).

Can the remaining balance owed to the seller, be paid off with a mortagage through a bank? And do most owner financed homes, have a standard 5 or 10 year balloon?

Can the remaining balance owed to the seller, be paid off with a mortagage through a bank?

Sure, this is simply called: refinancing. The buyer gets a new loan from a bank and pays off the original seller financed mortgage. Make sure the seller financed mortgage has no prepayment penalty (or at least not very large penalty).

And do most owner financed homes, have a standard 5 or 10 year balloon?
They tend to have 5-10 year...., although, all terms are obviously negotiable.