Yes, probably. In California, a law called the "Homeowner Bill of Rights" (HBOR) generally gives borrowers the right to appeal a modification denial.
Under HBOR, in most cases, if the borrower's application for a first lien loan modification is denied, the borrower gets at least 30 days from the date of the written denial to appeal and to provide evidence that the mortgage servicer's determination was in error. Though, some smaller loan servicers don't have to give you a chance to appeal the decision. (Cal.Civ.Code § 2923.6).
So, you should submit your appeal to your servicer within 30 days from the date given in the denial letter. In your appeal, you'll need to provide evidence that the servicer made a mistake when denying your application.
Information Your Servicer Must Give You in the Denial Notice
Under HBOR, if your servicer denies your modification application, the servicer must:
explain your right to appeal, including the amount of time you have to appeal
if the investor (the owner of your loan) is the one that denied your request, give you the specific reason for the denial
provide the monthly gross income and property value the servicer used to calculate the net present value (NPV) if it denied your application because of an NPV calculation
if applicable, say that you were previously offered a first lien loan modification and failed to successfully make payments under the terms of the modified loan, and
if applicable, describe any foreclosure alternatives that are still available to you, and a list of the steps you must take to be considered for those options. If the mortgage servicer has already approved you for another foreclosure prevention alternative, it needs to also give you the information necessary to complete the foreclosure prevention alternative. (Cal. Civ. Code § 2923.6(f)).
The Servicer Can't Proceed with a Foreclosure During the Appeal Period
31 days after notifying you in writing about the denial (if you don't appeal)
15 days after denying your appeal
14 days after a first lien loan modification is offered after appeal, but you decline it, or
if a first lien loan modification is offered and accepted after appeal, the date on which you fail to timely submit the first payment or otherwise breach the terms of the offer. (Cal. Civ. Code § 2923.6(e)(1)-(2)).
Right to Appeal: Only for a First Mortgage on a Home You Live In
You can appeal a loan modification denial only if:
you live in the property (that is, the home is owner-occupied), and
the property has no more than four units. (Cal. Civ. Code § 2924.15).
Other Laws That Might Give You the Right to Appeal the Denial
Federal law generally requires servicers to give homeowners 14 days to appeal a loan modification denial. In most cases, this appeal right kicks in if the servicer receives your loan application 90 days or more before the foreclosure sale date. If a complete loss mitigation application is received less than 90 days before a foreclosure sale but more than 37 days before a foreclosure sale, the servicer must give you at least seven days to accept or reject a loss mitigation offer. (12 C.F.R. § 1024.41).
If you believe your servicer denied your loan modification in error or didn't provide you with the proper opportunity to appeal the denial, consider talking to a foreclosure attorney to get advice about you what you should do in your particular circumstances.