As lawmakers debate the massive rescue plan, many consumer advocates are upset that it would benefit the same Wall Street banks that provided funding for the explosion of subprime and other exotic loans while making only vague promises to assist homeowners.

"It has been very difficult to get (the government) to put together a mandatory, comprehensive, immediate plan to rescue homeowners in the same way that they've put together a massive plan to rescue those who got us in this crisis in the first place," said John Taylor, president of the National Community Reinvestment Coalition, a consumer group in Washington.

Even if the government does push aggressive efforts to modify troubled loans, it could take months to put such a sweeping effort in place.

Still, some housing advocates believe borrowers will have better luck with the government than with private mortgage investors.

"I would expect the government would be an easier entity to negotiate with than the current lenders who are trying at all costs not to take a loss," said Mossik Hacobian, executive director of Urban Edge Housing Corp. in Boston, which has been trying to help Montes with her mortgage.

The government may well step up pressure on loan servicers — which collect and distribute loan payments — to make changes in loan terms such as reduced interest rates or lowered principal balances, said Credit Suisse analyst Rod Dubitsky.

But while the government would be the largest investor in mortgage securities, "they can't dictate anything" unless they buy whole loans, instead of slices of mortgage securities, Dubitsky said.

Many in Washington and on Wall Street are hoping the rescue package will make more money available for mortgage lending, lower interest rates and make it easier for borrowers to qualify. This might help put a floor under falling home prices — which are down more than 16 percent nationally from a year ago — and lessen the severity of the economic downturn.

That would be welcome news for Rick Wendell, a 41-year-old electrician in Orlando, Fla. He and his wife are looking to rent out a room in their three-bedroom house. They are struggling to pay their $1,950 mortgage and property taxes because his wife lost her job earlier this year.

The Wendells bought their house 18 months ago for $245,000, but think it has dropped in value by at least $25,000.

"Unfortunately for me, I'm stuck with a house at a high price," he said. "The people who have already purchased a home are stuck," he said, noting that a federal bailout "might stimulate the economy, and my wife might be able to find a job."

Consumer groups say the lending industry was ill-prepared for a sharp rise in foreclosures. And they blast the industry for relying on short-term repayment plans, which aim to help borrowers get back on track after missing a few payments, rather than reducing the principal balance or lowering the interest rate.