Sloppy "Sewer Service" Leads To Another Void Foreclosure Judgment

A recent court ruling by the Indiana Court of Appeals voiding a default judgment in a foreclosure action serves as a reminder to all attorneys and process servers (as well as homeowners who are fighting off foreclosure) that, when initial attempts to personally serve the defendants with the lawsuit fails, a diligent search for them must be made and properly documented before an alternative manner of serving the lawsuit can be used. Further, when the alternative manner is used, failure to comply with all the statutory technicalities associated therewith will provide additional grounds to render the judgment void.

In this case, representatives for a foreclosing first mortgage holder used minimal efforts (an online "People" search on Yahoo) in a failed attempt to locate the whereabouts of a second mortgage holder (an individual) to effect personal service before utilizing the alternative manner.- publishing the summons in the local newspaper. The court also found that compliance with the required statutory technicalities when opting for this manner of service was lacking. Consequently, the appeals court ruled that the lower court did not acquire personal jurisdiction over the second mortgage holder, thereby rendering the default judgment void.

For the specific facts in the case and the court ruling applying Indiana law, see Yoder v. Colonial National Mortgage, No. 32A01-0908-CV-393 (Ind. Ct. of App., February 3, 2010). sewer service