A proposed $700 billion financial sector bailout bill passed in the Senate Wednesday night by a vote of 74-25, after the U.S. House of Representatives failed to pass a similar bill Monday.

The legislative package will give the federal government the authority and funding to buy up roughly $700 billion worth of soured mortgage and insurance securities from major corporate players that would otherwise face bankruptcy.

In an effort to pass the controversial piece of law, the Senate also included $150 billion of tax break extensions and an increase in the federal deposit insurance limit from $100,000 to $250,000.

Until now, public opinion about the bailout had been extremely negative, but the past week of dramatic Dow Jones dips seem to be softening the stance of many voters on this issue. The main concern has been that a “rescue” plan would reward companies for their risky behavior and encourage more bad choices in the future.

The House could vote on the Senate’s bailout plan as early as Friday and House Majority Leader Steny Hoyer was optimistic about the bill’s chances of passing.

“I think there’s a good prospect of getting that done tomorrow,” said the Maryland Democrat on Thursday.

House Financial Services Committee Chairman Barney Frank was more cautious in his predictions.

“It’s still uncertain. I think it is likelier to pass than before,” Frank, a Massachusetts Democrat said in a CNN interview. “The main change is reality. I think that it’s not possible now to scoff at the predictions of doom if we don’t do anything.”

In other mortgage news, a new government program to help troubled homeowners began Wednesday and is expected to help as many as 400,000 American families.

HOPE for Homeowners gives the Federal Housing Administration (FHA) greater ability to insure home loans for mortgage holders facing foreclosure because of skyrocketing interest rates on their ARM loans.

The plan allows the FHA to back up to $300 billion in refinance home loans, but lenders must voluntarily participate, writing down such loans to 90 percent of their current appraised value. Many  HOPE for Homeowners proponents believe most lenders will be happy to get these bad loans off their books.

Steve Preston, Secretary of the Department of Housing and Urban Development called the initiative a “helpful step forward” but added that “it must be part of a larger vision for the future, a vision that will help Americans keep their homes and remain financially secure.”

Borrowers interested in participating in the FHA program can contact their lenders, speak with a HUD counselor, or call 1-888-995-HOPE.