I read an article on Save Me From Foreclosure Site.  It makes the point that when a someone is already in trouble, and they think that refinancing might be a way out, they should consider that there will be expenses in the refinance that will add to their burden.  Aprpaisals, points associated with the new loan, settlement fees, underwriting fees, transfer taxes, recordation charges, title insurance costs, credit report fees. 

Then the borrower is probably going to have a larger debt because he/she has added so many costs plus late fees and possibly attorney fees to the debt. AND he/she is probably going to have a lower FICO and a higher interest rate.

Anyone in trouble with their debt should consider all options carefully and get good professional advice.