Home / Business and Economy / Arizona HOA Forecloses on Home for Less Than $1,000 Debt
Arizona HOA Forecloses on Home for Less Than $1,000 Debt
16 Sep
Summary
- A debt of $977 in HOA fees led to foreclosure proceedings in Arizona.
- The couple's home was sold for $8,172 to cover a debt of $6,579.
- A new Arizona law could have prevented this foreclosure had it been in effect.
In Arizona, a couple is striving to recover their home, which was foreclosed upon due to an outstanding Homeowners' Association (HOA) debt of just $977. Toby Newton purchased the East Mesa home in 2022 but faced job loss and a diabetes diagnosis, leading to missed HOA payments. Despite offering multiple payment plans, the HOA denied his proposals.
By November 2024, foreclosure proceedings began, and the home was officially foreclosed in 2025. Filings revealed the debt had grown to $1,311 in assessments, plus significant plaintiff and attorney fees. The property was sold at auction for $8,172 against a debt of $6,579.
Adding to their crisis, Newton's partner, Sherri Patten, was diagnosed with breast cancer, forcing her onto disability. The HOA initially offered to return the home if the debt was repaid within six months, a deadline that passed as they prioritized health. A subsequent offer required $10,484 by May 2026.
Newton has filed for an emergency stay and is seeking to understand the HOA's refusal of his offers. The couple is fundraising on GoFundMe for essential costs and to buy back their home. Significantly, a new Arizona law now requires an 18-month delinquency and a minimum debt of $10,000 for foreclosure, a threshold that would have protected Newton's home.
