OCEANSIDE -- Working with lenders or filing bankruptcy could allow financially troubled homeowners to keep their property, real estate professionals, attorneys and counselors said Saturday.

The speakers and counselors came to Oceanside to see about 100 people who signed up for a clinic by the Housing Opportunities Collaborative. A nonprofit group, the collaborative encourages home ownership, especially among minority groups that have a low rate of home ownership.

"You are not alone in this situation," said clinic organizer Yamila Ayad, a mortgage broker and member of the National Association of Hispanic Real Estate Professionals. "We will do everything we can to help you keep your home."

The homeowners gathered in the courtyard outside the Oceanside Library in the City Hall complex to hear Ayad and other speakers. As their names were called for individual counseling, they filed into the library's community rooms.

Ayad said that in some cases, lenders will work with homeowners to make their loans easier to repay.

"Lenders don't necessarily want your home," Ayad said, especially when many other foreclosures are crowding the market. Oceanside's 92057 ZIP code has one of the state's highest rates of foreclosures, she said.

Each case is handled individually, Ayad said.

"Most of it is working out a loan modification with the lender," Ayad said. "Like, 'Please give me an opportunity to extend that fixed rate that I had for a long time, please remove this prepayment penalty, please get me into a loan where I'm actually paying interest and not having an negative amortization and continuing to lose my equity.' "

"Negative amortization" loans are extremely risky for the homebuyer. The payments do not fully cover the interest due, which is added to the amount owed. In other words, the total amount due increases every month.

Before contacting the lender, homeowners should first review their mortgage terms with a group like the collaborative, Ayad said. In addition, she said, homeowners should demand help -- "yell and scream" -- from their political leaders.

Attorney John Brady said bankruptcy may be the best alternative for those wishing to keep their homes.

A homeowner may have enough income to pay the mortgage alone, but not along with other debt. In that case, a Chapter 13 bankruptcy, which gives you an easier repayment plan approved by the court, may be the best course, Brady said.

"You have five years to pay back your debt, and at zero interest," Brady said.

A Chapter 7 bankruptcy eliminates most debts, while allowing the debtor to keep paying for a home or a car. But most other assets are given up, and sold to pay off creditors. However, the debtor must be able to show the debts are greater than the ability to repay.

"Under Chapter 7, there's no provision under bankruptcy law for a repayment plan," Brady said. "It's strictly whatever can be bargained between you and the lender. … So if you're behind on the mortgage, the better choice is Chapter 13."

Filing for either Chapter 7 or 13 bankruptcy also gives the debtor time, Brady said.

"The moment the case is filed in the court, it stops the foreclosure," Brady said. "It not only stops the foreclosure, it stops every other levy. It stops IRS levies, car repossessions -- everything."

For people with really bad credit, a Chapter 7 bankruptcy can even improve their credit score, Brady said. That's because the negative of having filed for bankruptcy may be offset by the removal of bad debts from the filer's credit report.

The Housing Opportunities Collaborative can be reached on the Web at http://tinyurl.com/36e9sq or at (619) 282-6647, ext 373.

Contact staff writer Bradley J. Fikes at (760) 739-6641 or bfikes@nctimes.com.