After debtor’s motion to avoid lien was granted (by default), creditor filed a motion to vacate. The property was owned by debtor and debtor’s non-filed spouse and the lien was a subordinate deed of trust. Lender argued that the deed of trust trustees were necessary parties to the motion to avoid lien, without whom the order should not have been entered.
The court determined that deed of trust trustees are not necessary parties to motions to avoid liens. However, because the co-tenant by the entirety (debtor’s spouse) was not a party, the court granted the motion to vacate and dismissed the motion to avoid lien, without prejudice.