To rephrase your question: Should I put my HOUSE at risk to pay UNSECURED debts? If you are about to lose your house, you are paying the wrong bills. By food and your house payment first. If there is not enough left for the past due and medical bills, ignore those. They CAN’T take your house.

A refi may be the answer as long as your credit will hold out. If your credit is already in bad shape and you are behind on mortgage payments then your best bet may actually be to sell the property out right.

One of the difficult refi’s to do is a Cash Out, which is what you are talking about. Bear in mind that the bank will only loan you 80% of the value of your home. Thus, you need to know what the value of your home is. For example, if your home is worth $140,000 and you owe $110,000 then you have $30,000 in equity. 110/140 = 0.78 or 78% of the home value is still mortgaged. So, the bank will only loan you the additional 2% or $2,800 which might not even cover the closing costs. This is just an example but it give food for thought.

If you bills are going to cause you to loose the home anyway, you may want to sell the home, pay off your bills, recover a bit and then start over.

Good Luck!!!

That doesn’t sound too hot to me. At BEST you might re-fi into an adjustable rate mortgage (if you qualify - with recent events) and be in the same boat when your rates adjust in a few years.

Honestly, you should talk to a bankruptcy attorney. That might be the best option to save your home.