Recently I have had a few clients try to refinance and pull cash out of their house.  These potential clients were trying to take some money out of their house so that they would have peace of mind and know that if they needed it, they would have extra money for emergencies or if they were short paying all their bills. 

Unfortunately, they waited until they had already been late on their mortgage to apply for the refinance.  At that point, you've waited too long.  If you see yourself getting into trouble, refinance now before you get the mortgage lates.  Banks really look at whether or not you can handle a mortgage payment responsibly.  If you've been late on your mortgage more than 30 days, what we call a 30 day late, that counts against you. 

Hope this helps.  Please post or message me any questions.