That is probably your problem, and I do believe you are right about it being unsafe, I would find a set of stock springs and get a set of Rodney's lowering ball joints and some new upper ball joints too. New rubber for the arms would be a good idea while you are at it, but may not be necessary depending on condition of the rubber. Welcome to the forum.
------------------ 86 GT built 2.2 ecotec turbo rear SLA suspension QA1 coilovers on tube arms
I was going to say Rodney Dickman at http://rodneydickman.com but he does not have them listed anymore for the pre 88's.
Rodney has been a great resource for the Fiero community but I know he was looking to wind up/sell his parts business a while ago so that may be why. You could try contacting him to see if he has any hidden away or knows of another supplier.
That does not look safe at all. The control arms are made of sheet metal. The forces being exerted by the coilovers are going to twist the control arm back and forth. And now, the entire weight of the front end is resting on those sheet metal brackets. Not good!
If you're looking for a project, you could make your front suspension ride height adjustable, using the stock mounting points. I did that on my '87 Fiero. I removed the upper spring perches (the metal cones with the rubber bump stops on them), and replaced them with adjustable spring perches. The shocks were left in the stock location. If you're interested in building something like that, there is some info in my build thread.
Seeing disasters like this is why I prefer to avoid modified used cars... bone stock is my preference.
A lot of the time you don't really know what you are buying, even when you know all the main trouble spots, there's a lot that's easy to miss, and this is his first Fiero. Still, he's found it and hopefully will be able to save yet another one from the bodge it school of repair!
------------------ Anything I might say is probably worth what you paid for it, so treat it accordingly!