An Arizona homeowner lost a four-bedroom house he bought for nearly half a million dollars after falling behind on homeowners association fees by less than $1,000.
Toby Newton purchased the Mesa, Arizona, property for $450,000 in 2022. But two years later, a job loss and a diabetes diagnosis left him struggling financially, according to reporting by the Mesa Tribune.
Newton eventually fell behind on his quarterly HOA assessments, which were about $170. His unpaid fees and interest reached $977.
What followed was a foreclosure case that added thousands of dollars in fees and legal costs to the original debt. In October 2025, the home was sold at a public auction to the Superstition Springs Community Master Association for $8,172.
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How the $977 HOA debt began
Newton said his financial problems started after he lost his job and was diagnosed with diabetes.
“I bought the house and then I got sick,” Newton told the Mesa Tribune. “I got diabetes and I was out of work.”
The homeowner said he contacted the Superstition Springs Community Master Association and tried to arrange a payment plan.
According to Newton, he initially offered to pay $50 a month toward the outstanding balance while continuing to pay his regular HOA assessments.
When that proposal was rejected, he said he increased the amount, eventually offering $200 a month.
Newton said those offers were also rejected.
By November 2024, foreclosure proceedings had begun.
The debt grew as the foreclosure continued
The original $977 debt was only part of the amount eventually involved in the case.
Court filings showed that by July 2025, Newton owed $1,311 in missed assessments and late charges, along with $1,042.09 in plaintiff's fees and $3,345 in attorney fees.
By the time the property was sold, Newton's total debt was reported at $6,579.
The home, meanwhile, was ultimately purchased at auction by the HOA for $8,172.
That meant a property Newton had purchased for hundreds of thousands of dollars changed hands for a fraction of its original purchase price.
Arizona changed its HOA foreclosure rules
The case unfolded alongside changes to Arizona's HOA foreclosure laws.
In 2025, Arizona lawmakers approved Senate Bill 1494, which increased the threshold for an HOA to foreclose a common-expense lien on a planned-community property.
Under the law, an HOA generally cannot foreclose unless the homeowner has remained delinquent for 18 months or owes at least $10,000 in assessments, whichever comes first. The law also requires HOA boards to make reasonable efforts to communicate with homeowners and offer a reasonable payment plan before filing a foreclosure action.
The change was significant because Arizona's previous rules had allowed foreclosure after a much lower delinquency threshold. Arizona Senate research materials said the earlier threshold was one year or $1,200, whichever came first.
Newton's partner launched a fundraiser
Newton's longtime partner, Sherrie Patten, later launched a GoFundMe campaign seeking help for the couple.
She described the ordeal as taking an “emotional and financial toll” on them.
The couple's efforts to recover financially came after the loss of the home and the accumulation of foreclosure-related costs.
The case has since drawn attention to how HOA assessments, collection costs and foreclosure proceedings can interact when a homeowner falls behind on relatively small dues.
For Newton, what began with $977 in unpaid HOA fees ultimately ended with the loss of a home that had cost $450,000 just a few years earlier.
