Can I sue a bank ?

We were approved for a modification that we never accepted, because it was almost the same as our mortgage payment. We were contacted by the bank and told to re-apply. The bank then opened the old case that we didn't accept, and put two months payments received in a suspense account. They then reported us to the credit agencies for non payment causing all of our credit card holders to reduced all the credit limits that we had. Our credit scores went from 735 to the 500's and is still dropping. They also sent us foreclosure notices and we have never been over 30 days late. They accepted that everything they did was wrong, and we are unable to refinance or get any type of loans because of their mistakes.