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Step 1
One of the first things that you have to realize about trying to refinance while your house is in foreclosure is that you aren't in the best position to qualify with lenders, and where your credit score is at the time might determine a few things. If your score is relatively bad then you will most likely have to qualify on the value and equity of your property.
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Step 2
If you can work with your current lender to refinance while your house is in foreclosure that might be your best bet. If you've had your mortgage for a while that will work in your favor and in this economy companies are a little more lenient. They are least likely to add on a lot of extra penalties and fees, but if you've let things go to far they might not be willing to negotiate, it will really depend upon the individual lender and what their policies are, but the sooner you take action the better.
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Step 3
Sometimes if you act fast enough your current lender may even be willing to take the payments that you are behind and put them at the end of your loan when you refinance your house. There is a whole different set of rules that apply with the current economic conditions but you may need to ask for this option.
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Step 4
When you've tried all of these other options and none of them have worked you may need to consider an outside lender to get refinancing, and if your credit is trashed you'll have to fall back on the equity of your house to obtain refinancing. In the event that you don't have equity or credit you may not be able to qualify for refinancing but it is worth a shot to try, if you are already in foreclosure everything that you attempt is basically worth the time to try and save your house.
