HOA forecloses on Arizona homeowner’s $450K house over unpaid $977 debt and sells it for just $8k

A Mesa, Arizona man has lost his $475,000 home after falling behind on a $977 homeowners association debt. Toby Newton bought the house four years ago in southeast Mesa’s Superstition Springs community, intending to retire there, but fell behind on HOA dues of $877, which with principal came to $977. 

Newton, 53, said he got sick and lost his job in early 2024, later being diagnosed with diabetes, leaving his girlfriend, Sherrie Patten, to cover household expenses. Newton reportedly offered repeated payment plans, but the HOA board rejected them and proceeded with foreclosure, with a default judgment entered in June 2025, according to New York Post.

The case has renewed scrutiny of HOA foreclosure powers in Arizona.