Toby Newton, a 53-year-old man from Mesa, Arizona, has had his $475,000 home sold from under him by his homeowners' association (HOA) after falling behind on his quarterly dues, which totaled less than $1,000.
Newton, who purchased the four-bedroom home in 2022, had been struggling to make payments due to losing his sales job and being diagnosed with diabetes. His partner has also been battling breast cancer. He claimed that he attempted to contact the HOA to make arrangements to pay the overdue amount of $977, but was told to speak with their attorney, which he believed led to the situation escalating.
Newton said that he initially offered to pay an extra $50 per month on top of his regular assessments, but this was rejected by the HOA. He also proposed a $200 monthly increase, which was similarly denied. As a result, the HOA began foreclosure proceedings, and the debt ballooned to nearly $10,000, mostly for attorney's fees.
The home was sold at a public auction in November 2025 for $8,172, a significant loss for Newton. He expressed his frustration and confusion over the HOA's actions, stating that he didn't understand how an organization meant to serve the community could fail to work with its members. Newton has not been evicted from the home and is currently trying to find a way to save it.
The situation has highlighted concerns about the aggressive tactics used by some HOAs in collecting unpaid dues, with many homeowners facing foreclosure and financial hardship as a result. Real estate experts have noted that rising operating costs and shrinking reserve funds are driving HOAs to take a tougher stance on unpaid assessments.
NTC Report coverage is based on reporting from the original publisher.
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