Ehh.. so i won't say anything funny, like he's a toaster, i'll say my THEORY, because these are THEORIES.
Then, here i go.
Balrog calls Jenka 'auntie' in her house, and aunt is your father's/ mother's sister, and Jenka's brother's is Ballos. So, Ballos could create balrog somehow, because he have magic powers. Maybe he created him to help him? And the second theory is that Balrog is calling Jenka auntie because he was created by Misery, but he doesn't treat her as mother, but like sister or just like friend, so he calls her mother auntie. But Ballos theory is better for me, because if he was created by him and he watched him as he is doing good things, he learned something and that's how he is 'the good guy' in the end. I don't know, i just know that he was created by Misery or Ballos. BTW, sorry 4 my English, i am from poland.