WASHINGTON - The harsh reality for Murielle Montes and hundreds of thousands of homeowners who are behind on their mortgages is this: A $700 billion bailout of the financial industry will probably do little to help them avoid foreclosure.

Today, House lawmakers are scheduled to vote on the package, amid intense lobbying from President Bush and industry groups who say the measure is crucial for stabilizing the staggering U.S. economy.

But when it comes to foreclosures, the Treasury Department is only directed to "maximize assistance for homeowners" and write up monthly progress reports.

That's not enough to help Montes, a 46-year-old nursing assistant, who faces foreclosure on the house she bought in Brockton, Mass., three years ago.

She has been working with a housing counselor to modify her loan since February, but hasn't had any luck. She received a foreclosure notice in August. Meanwhile, the value of her house has sunk from her purchase price of $330,000 to $250,000, she said.

"Where are am I going to sleep? Where are my kids going to go?" asked Montes, who immigrated to the United States from Haiti 20 years ago. The government, she said, "should try to buy the loan out so people can refinance ... and everyone can stay in their house."

But in many cases, the federal government's hands could be tied -- either because the mortgages are pooled into securities sold in pieces to other investors or because homeowners don't have the financial resources to stay in the property.

"Only a small portion of problem loans," can be saved, said Deutsche Bank analyst Karen Weaver. "It doesn't always work ... In some cases the lender is better off just taking back the property and just selling it."

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.

On another front, 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."

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