Washington  - The US Senate Saturday passed a multi-billion- dollar bill to address the ongoing crisis in the American housing market, paving the way for US President George W Bush to sign the long-waited rescue package next week.

The legislation will allow some 400,000 struggling homeowners to refinance into government-backed, low-interest loans and approves a contingency plan in the event that mortgage giants Fannie Mae and Freddie Mac are threatened with collapse.

The 72-13 Senate vote came after the House of Representatives approved the measure and Bush dropped his opposition to the bill earlier this week.

Plunging housing prices have led a record number of US homeowners to default on their mortgages in the past year, costing financial institutions nearly 500 billion dollars in writedowns of mortgage- related assets.

RealtyTrac Inc on Friday reported that foreclosure filings had surged 121 per cent in the second quarter from the year-earlier period. (dpa)