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Homeowners line up in the hallway at the Rivertown Resource Center to meet with Washington Mutual Bank representatives to try to modify their home loans on Friday, July 18, 2008, at the Rivertown Resource Center in Antioch, Calif. (Eddie Ledesma / Staff)

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ANTIOCH — The faces were different, but the fear of seeing the American Dream slip away was the same.

Nearly 100 homeowners crowded into the Rivertown Resource Center on Friday afternoon seeking help to avoid falling off an economic ledge brought closer by ballooning loan payments and equity loss.

Luis and Elba Aguayo moved into their $265,000 house in Oakley five years ago. They are frustrated because they have an interest-only mortgage which increased to $2,300 a month. Their neighbor just bought the house next door for $160,000 and pays $900 a month.

"I want to refinance. I can't pay my loans, I don't have enough money," Luis Aguayo said.

Similarly, Gary Robinson wants to change his adjustable loan for his southeast Antioch home. He said the monthly payment on the loan rose from $1,800 to $5,000 in March.

"I want to have time to regroup. I'm going to be here awhile, I want to get a return for my investment," he said. Robinson bought his home three years ago for $875,000 and a $195,000 down payment. Similar homes now sell for $400,000.

The meeting included Washington Mutual Bank representatives, who offered to help borrowers try to change their loans.

Sara Gaugl, a Washington Mutual spokeswoman, said the bank views foreclosure as a last resort.

"We are fully committed to doing our part in providing innovative solutions and expanded options that help our customers stabilize their finances and put

Washington Mutual officials said they would help modify loans by lowering the interest rate, converting adjustable loans to fixed rates and forgiving debt and reducing the size of loans to stabilize families.

The bank's representatives were well prepared and "came to do real work," said Rudeen Monte of Sutter Delta Medical Center. Monte was at the event because she knows of patients at the Antioch hospital having to choose between paying the mortgage or health insurance.

Friday's face-to-face meeting was organized by CCISCO, a county interfaith group that has been working to get banks to convert their customers' risky, adjustable-rate mortgages into 30-year fixed-rate and other stable mortgages to keep people in their homes. Housing counselors from Catholic Charities of the East Bay, Todos Unidos, ACORN, Countrywide and Pacific Community Services assisted those who were not Washington Mutual customers.

Three months ago, CCISCO organized a protest outside Countrywide, Wachovia and Washington Mutual branches near the Somersville Towne Center and requested that representatives of the financial institutions meet with mortgage customers face-to-face, said Oliba Cardona, a group spokeswoman.

Since last July, the lending industry has helped almost 1.7 million struggling homeowners through loan modifications and repayment plans, according to the HOPE NOW Alliance, an organization of counselors, mortgage servicers and others.

Conversely, a survey released earlier this month by the California Reinvestment Coalition — an advocacy group that favors the right of low-income communities to have equal access to financial services — says lenders are not working with borrowers who need loan modifications.

"In general, the loan servicers are not doing enough to keep borrowers in their homes. The modifications are being overwhelmed by the increase in foreclosures," said Kevin Stein, the coalition's associate director.

Stein said he considers Friday's outreach by Washington Mutual as a positive, so long as they follow through in continuing to help. Gaugl said Washington Mutual would remain in contact with its customers who attended the meeting.

Reach Paul Burgarino at 925-779-7164 or pburgarino@bayareanewsgroup.com.