Home sold over $977 debt

Toby Newton lost his $475,000 Mesa home after falling behind on quarterly HOA dues totaling less than $1,000. The home sold at auction for just $8,172.

Medical crisis triggered the debt

Newton fell behind after losing his sales job and being diagnosed with diabetes. His partner was also battling breast cancer at the time.

“I was a year and a half behind because of the situation I found myself in with my girlfriend and myself getting sick”

HOA rejected payment plans

Newton offered to pay an extra $50 per month, then $200 per month, to catch up on his debt. Both proposals were denied by the association.

“I just don't understand how an HOA that's supposed to be there for the community doesn't work with the community at all”

Legal fees ballooned the debt

The original $977 debt grew to nearly $10,000, mostly from attorney's fees charged by the HOA during foreclosure proceedings.

“I don't know how it could go from owing them $977 to $10,000”

He learned about auction too late

Newton said he wasn't aware of the public auction until two days before it happened in November 2025. He remains in the home, hoping to buy it back.

HOA foreclosures are surging nationwide

HOA-related foreclosures jumped nearly 40% compared to two years earlier. Associations face rising costs and shrinking reserve funds, driving aggressive collection efforts.