A judgment that purports to avoid the lien interest of the holder of the first deed of trust on the debtors' residence is ineffective against the lienholder when the lienholder is not named as a party to the lawsuit. Even though the debtors thought the mortgage servicer, which they named as a defendant, held an interest in the property, they were aware of the original lender's assignment to the current lienholder and should have provided an opportunity for it to protect its interest.