Legal Question in Real Estate Law in California

The State Bar now pretty much requires attorneys to carry malpractice insurance, and if you can prove a lie that was a material factor in your loss of $4000 in fees, you may have some chance -- however, the cost to sue would be in the same ballpark. May be worth while to put together a synposis of what happened and take it to (free) initial conferences with local attorneys who specialize in attorney malpractice or related areas, but I'm doubtful.

Contact the local police and the State Bar with your complaint.

I disagree with Mr. Whipple. The State Bar does not require attorneys to carry malpractice insurance, it requires attorneys to advise clients of whether or not they carry malpractice insurance.

There is a law currently in effect that prohibits attorneys from taking advance fees for loan modification.

I'd suggest you speak to a competent real estate attorney as soon as possible. If you want, please feel free to send me a personal e-mail. I do not charge for initial consultations unless the matter involves prior litigation or is already in litigation.