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Arizona Man Loses $450K Home Over Shockingly Small Debt

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An Arizona man lost the home he bought for nearly half a million dollars after falling just $977 behind on homeowners association fees — with the property ultimately selling back to the HOA for a mere $8,172.

Toby Newton purchased the four-bedroom Mesa home for $475,000 in 2022, but ran into financial trouble two years later after losing his job and being diagnosed with diabetes, according to the Mesa Tribune.

Newton fell behind on his quarterly HOA assessments, which were around $170, eventually owing $977 in fees and interest.

“I bought the house and then I got sick,” Newton told the outlet. “I got diabetes and I was out of work.”

Aerial view of the Sun Circle Trail and Consolidated Canal in Mesa, Arizona, surrounded by residential homes and streets.

Toby Newton and his longtime partner, Sherrie Patten, who started a GoFundMe page to help save their home. GoFundMe

Toby Newton’s $475,000 Mesa home ultimately sold to the HOA at auction for just $8,172.

Toby Newton’s $475,000 Mesa home ultimately sold to the HOA at auction for just $8,172. Google Maps

Newton said he contacted the Superstition Springs Community Master Association in an attempt to work out a payment plan.

He initially offered to pay $50 per month toward his debt while keeping up with his regular assessments. After that was rejected, he increased his proposed payments — eventually offering $200 a month — but said the HOA rejected those offers as well.

By November 2024, the association had initiated foreclosure proceedings.

As the case dragged on, the relatively modest HOA debt ballooned.

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.

The home was ultimately sold at public auction in October 2025 to the Superstition Springs Community Master Association for just $8,172. Newton’s total debt stood at $6,579 by then.

The case unfolded as Arizona lawmakers moved to give homeowners greater protections against HOA foreclosures.

A new Arizona law raises the threshold for when HOAs can foreclose on homeowners over unpaid assessments.

A new Arizona law raises the threshold for when HOAs can foreclose on homeowners over unpaid assessments. tim – stock.adobe.com

In April 2025, Arizona enacted Senate Bill 1494, which significantly raised the bar for when an HOA can foreclose over unpaid assessments.

Under the new law, homeowners must be delinquent for at least 18 months or owe $10,000 or more in assessments before an HOA can foreclose — up from the previous thresholds of one year or $1,200.

The law also requires HOA boards to make reasonable efforts to communicate with delinquent homeowners and offer a reasonable payment plan before filing a foreclosure action.

Newton’s longtime partner, Sherrie Patten, later launched a GoFundMe for the couple, writing that the ordeal had taken an “emotional and financial toll” on them.