A homeowner in Mesa, Arizona, lost a house he bought in 2022 for $450,000 after an HOA debt of under $1,000 led to a foreclosure.
The property was purchased at an auction by the HOA for $8,172.
Here's what to know
According to The Mesa Tribune, Toby Newton bought the four-bedroom home for $449,328. But, in 2024, he lost his job, was diagnosed with diabetes, and fell behind on quarterly homeowners association assessments of $171.
After a year of missed payments, the amount he owed to the Superstition Springs Community Master Association reached $977.
Foreclosure proceedings began in November 2024. Newton repeatedly tried to set up a payment arrangement with the HOA. He said he first offered $50 a month while continuing to pay his regular assessments, then later raised the offer to $200 per month, but both proposals were rejected, as the Tribune reported.
Then, in October, the home was sold at public auction, where the association bought it for just $8,172.
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What's being done?
The case played out even as Arizona changed its approach to HOA foreclosures in 2025. In April 2025, the state passed Senate Bill 1494, making it more difficult for HOAs to foreclose on homeowners.
Under the law, an HOA must wait until a homeowner is at least 18 months delinquent or owes $10,000 or more in assessments before pursuing foreclosure. Previously, the threshold was one year of delinquency or $1,200 in unpaid assessments.
The measure also requires HOA boards to make reasonable efforts to communicate with homeowners who are behind and to offer a reasonable payment arrangement before starting foreclosure proceedings.
Where can I learn more?
These stories look at other disputes between homeowners and HOAs over landscaping, home upgrades, and property rules.
• A homeowner spent years paying steep fees before questioning vague lawn upkeep rules enforced by an HOA.
• Across several neighborhoods, residents pushed back as HOA bans on native plants collided with low-cost yards.
• One resident challenged an HOA's blocked installation after seeking a home upgrade.
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