In Mesa, Arizona, a couple facing health difficulties lost their $475,000 home due to owing less than $1,000 in homeowner association (HOA) fees. The case, which remains unresolved to this day, has brought attention to the challenges individuals may face in such situations.
Toby Newton, 53, purchased a four-bedroom house in the Superstition Springs community in Mesa for $475,000 in August 2022. However, in 2024, he became unemployed and was diagnosed with diabetes, leading to a significant decrease in income, with most household expenses being handled by his wife, Sherrie Patten.
During this period, Newton fell behind on quarterly HOA fees totaling around $170. The unpaid amount eventually grew to $977 due to additional fees and interest. Newton stated to the local media that his illness and job loss happened shortly after buying the house, making it challenging for him to keep up with the payments.
Newton acknowledged his HOA fee arrears and attempted to negotiate a repayment plan with the association in 2024. Despite offering various monthly repayment amounts starting from $50, his proposals were rejected each time, leading to legal action being taken against him.
On November 15, 2024, the Superstition Springs community association filed a foreclosure lawsuit against Newton through their attorney Augustus Shaw IV. Despite being offered a settlement to clear the debt by a certain date, Newton failed to meet the deadline, resulting in the house being sold in a public auction to cover the outstanding debts.
The legal proceedings have been ongoing, with the association extending the redemption period for Newton until May 15, 2026, with an adjusted redemption cost of $10,484. Newton applied for emergency relief on May 14, with a court decision pending.
Amidst these challenges, Patten was diagnosed with bilateral breast cancer, leading her to take long-term disability leave. This added further financial strain on the couple, with Newton describing it as a situation of rapidly progressing cancer. To alleviate the financial burden, Newton and Patten turned to the crowdfunding platform GoFundMe for support, emphasizing the emotional and financial toll they have been enduring.
The incident occurred amidst changes in Arizona’s HOA foreclosure regulations. In April 2025, the governor signed the SB1494 bill, raising the threshold for foreclosure from “being delinquent for 12 months or $1,200” to “being delinquent for 18 months or $10,000”, effective September 26 of the same year. However, since Newton’s case was initiated in November 2024, before the new law took effect, the updated regulations do not apply to his situation.