Thursday, Feb 2 2012 6:19PM

In an attempt to help homeowners that fell victim to faulty foreclosure practices in 2010-11, some big-name lenders have agreed to a proposed $25 billion settlement but news sources report that California Attorney General Kamala Harris says the amount is not enough for affected homeowners.

Harris formerly declined previous negotiations made in September for the same settlement amount. Bloomberg reports that she will continue to hold out on signing until banks are held more accountable for damages done.

The Los Angeles Times reports that the largest amount of the settlement, $17 billion, would go toward a principal reduction program, while $5 billion would go to both state and federal programs as well as individual homeowners and $3 billion would aid homeowners with refinancing.

Foreclosures have affected many homeowners in California, including in rural areas. California had the third-highest foreclosure rate, only behind Nevada and Arizona, according to RealtyTrac.

"Our state has been clear about what any multistate settlement must contain: transparency, relief going to the most distressed homeowners and meaningful enforcement that ensures accountability. At this point, this deal does not suffice for California," Shum Preston, a spokesperson for Harris, said in a statement.

One way in which California homeowners can receive help with paying for their residences is through housing counseling services. Keep Your Home California is one program working to help homeowners statewide with mortgage.

For further information, check out these sources: Bloomberg, The Los Angeles Times