* Obama says financial market rescue is being retooled

* Kerry says Obama decision on bailout funds may come soon

* President-elect seeking input from Congress on spending

By Caren Bohan and Patrick Rucker

WASHINGTON, Jan 11 (Reuters) - President-elect Barack Obama vowed to restructure a financial rescue plan to save more U.S. families from home foreclosures, as he considered on Sunday whether to seek additional funds from a $700 billion bailout program.

Obama's aides have been in discussions with the White House over whether President George W. Bush should ask Congress for permission to use the remaining $350 billion of the funds, which are aimed at stabilizing the financial system.

The purpose of the request, which would be formally submitted by Bush, would be to have the funds in place soon after Obama takes office on Jan. 20.

But it may prove difficult to get approval from Congress because the bailout program is unpopular with many lawmakers who feel too much of the money has already been given to Wall Street firms that have continued to pay huge bonuses to executives.

The legislators want to some of the remaining money to be used instead to help struggling homeowners.