Legal Question in Real Estate Law in California

You have at least two problems. To your detriment did you reasonably rely upon what they told you and what are your damages. If all they said was that they would look at the chance of modifying your loan but said nothing that should have led you to believe they would do so, then their is no liability. What they did was underhanded and you should complain to the appropriate state bureaus, perhaps put something on the internet, but sticking to only the real facts and not making conclusions that might not be warranted. If yo had no where else to go to get out of the loan problem, which is probably the case, then their delaying you for looking elsewhere did not harm you.

What they did was shady, irresponsible, vulgar, but likely not illegal or a breach of contract or tort. Sorry.

I pretty much agree with Mr. Shers. I'd add that in large financial institutions they are both over-departmentalized and overloaded with modification and foreclosure work, and don't communicate well internally or with borrowers. The group that handles California foreclosures may be in Texas, while the group that handles California loan modifications may be in South Dakota or Bangalore. The right hand doesn't know what the left is doing.