Renegotiation and refinancing are solutions to debts in order for us to avoid for closures.
If you are still stable financially and have a good credit rating then refinancing is the best option for you. Meaning you can go to a lender or bank and make new loan with better interest rates and more manageable payments.
For you to be able to decide, it is important that you talk with a financial counselor or banker to see the details of your current loan. Because refinancing would really help if your looking for a cash back.
But if you are having problems regarding your earnings. Where in you wouldn’t be able to change your cash flow with in a certain time it would be better if you re negotiate your loan, meaning you ask for the lender to adjust the time frame of your payment into a more longer year so that you could come up with the amount and would be able to pay in exact schedule. Because extending the number of years of payment means lesser monthly or annual cost.
This would help you avoid home foreclosure.
Lending institutions makes business by keeping people in their homes, the more people they lend the bigger the business for them. However, re negotiating would be a temporary solution if you wanted to keep your property.
In the long run, its not that bad at all. When financial situation gets better you could always pay your debt before financial institutions gets their way over you. So before they could let you down do research and get proactive. Everything is possible.