LOS ANGELES (LN) — U.S. District Judge Christina A. Snyder on Thursday granted Nationstar Mortgage LLC’s motion to dismiss claims under California’s Homeowner Bill of Rights and for wrongful foreclosure, but denied dismissal of the plaintiff’s unfair competition law claim in a Venice foreclosure dispute.
The case centers on a single-family home at 202 4th Ave. in Venice, California, which plaintiff George Mkitarian purchased in 1988. Mkitarian alleges he fell behind on payments during the pandemic and attempted to modify the loan with Nationstar, which services the mortgage as Rushmore Loan Management Services.
Mkitarian claims he submitted multiple loan modification applications between 2022 and 2025, only to be told they were incomplete despite providing all requested documents. He alleges he never received a decision on the merits of these applications.
Despite a $48,000 payment in 2022 and consistent monthly payments thereafter, Nationstar recorded a Notice of Trustee’s Sale in March 2025. The sale was postponed several times, eventually occurring on December 2, 2025, after Mkitarian filed for bankruptcy.
Mkitarian alleges he was shocked because he believed his application was still under review. He hired an agent to submit a complete application in November 2025 and listed the home for sale, but the foreclosure proceeded.
Nationstar moved to dismiss, arguing Mkitarian failed to join his deceased wife, Diane Mkitarian, as a necessary party. The court denied this motion, finding Diane Mkitarian was not necessary because she and George held the property as joint tenants, meaning her interest automatically vested in him upon her death in October 2025.
The court granted Nationstar’s motion to dismiss the Homeowner Bill of Rights claims under Cal. Civ. Code §§ 2923.6 and 2924.18. The judge found Mkitarian did not allege he submitted a complete loan modification application at least five business days before the December 2025 sale.
The court also granted Nationstar’s motion to dismiss the wrongful foreclosure claim. Mkitarian conceded in his opposition that he failed to allege he tendered or was willing to tender the full loan proceeds, a requirement for such a claim. The judge granted leave to amend this claim as well.
However, the court denied Nationstar’s motion to dismiss the unfair competition law claim under Cal. Bus. & Prof. Code § 17200. The judge found Mkitarian adequately alleged that Nationstar’s conduct was unethical and likely to deceive the public, satisfying the unfair and fraudulent prongs of the UCL.
The court also granted Mkitarian leave to add a new claim under Cal. Civ. Code § 2923, which requires servicers to appoint a single point of contact for borrowers seeking foreclosure prevention alternatives.
Mkitarian must file an amended complaint within 14 days of the order.
Caleb Gonzales and Sarah Elizabeth Shapero of Shapero Law Firm, PC, represented Mkitarian. Justin D. Balser and Meagan S. Tom of Troutman Pepper Locke LLP represented Nationstar.