Do I have any legal recourse against a bank after following all instructions regarding loan modification process but my house was still foreclosed?

Most of your remedies occur before the foreclosure sale, but you might be eligible for damages under the global settlement the federal government entered into with the major banks. Contact the Washington State Attorney General for information on how to make a claim

No. You were still held to the mortgage that you signed. The bank is not obligated to give you a modification. There have been some unfair modification practices by banks that has been investigated by the FTC, look it up.