HOA Reverses Foreclosure of Home Over $977 Debt After National Backlash - Newsweek

An Arizona man who faced repossession of his home due to an original debt of $977 in unpaid homeowners association (HOA) fees was given the opportunity to keep their property after an outpouring of sympathy across the country.

The same HOA that had started foreclosure on Toby Newton and his longtime partner Sherrie Patten after the couple had fallen behind on HOA assessments as they navigated health challenges has now reversed course, as reported by Realtor.com.

The couple had tried many times to arrange a payment plan with the HOA to avoid repossession, to no avail. This change of heart has come only after the case sparked a national outcry, fueled in part by frustration over growing HOA fees across the country.

Newton, who had been fighting to stay in the property as the couple figured out how to raise the funds required by the HOA to redeem the home, told Realtor.com he was excited the whole thing "is becoming behind me."

Newton added: "It’s not behind me yet, but I just want this to be so I can take care of, you know, my medical expenses and get everything back to where it was when I offered them the payment plan."

Newton took out a loan of $449,328 to purchase his 1,750-square-foot four-bedroom home in southeast Mesa’s Superstition Springs community in 2022. It is the house where he intended to retire, as the man told The Mesa Tribune.

But, shortly after buying the property, Newton fell sick. In early 2024, he lost his job and was diagnosed with diabetes. Patten, who lives with him, also got sick, and the medical bills started piling up for the couple.

Struggling with mounting medical expenses and with no income coming in, Newton started missing his HOA payments. He told reporters he eventually came to owe $977 in assessments and interest.

"I missed a year’s worth of assessments," Newton said to the outlet. "So that’s $171 every quarter—I missed three of those. It might be four."

In November 2024, Newton was informed by the attorney representing the HOA managing his property, the Superstition Springs Community Master Association, that the HOA had initiated foreclosure proceedings in court. The attorney, Augustus Shaw IV, offered Newton a way out: paying $3,980 by December 6, 2024 to avoid foreclosure.

Newton made a counteroffer: paying $50 a month plus the monthly assessment, then $133.70. But, in January of last year, the HOA board denied the request. Newton followed up with another offer to pay $200 a month on top of the monthly assessment, but his request was again denied in April 2025.

The HOA then moved to make the foreclosure official, with court documents showing that, by then, Newton owed the HOA $1,311 for his missed assessments, $1,042.09 in plaintiff’s fees, and $3,345 in attorney’s fees.

The Maricopa County Sheriff seized Newton’s home in October 2025, when the man’s total debt to the HOA had reached $6,579. The property was sold in public auction and the highest bidder was that same HOA that had fought Newton over his debt, the Superstition Springs Community Master Association, which won it for just $8,172.

Under a new law introduced in Arizona last year, SB 1494, the state increased the threshold for foreclosure from one year of delinquency to 18 months and has raised the minimum dollar amount that triggers foreclosure from $1,200 to $10,000.

Unfortunately, the law came into effect after Newton’s HOA started the foreclosure process on his home.

Newton was given six months to redeem his house, though he was unable to raise the money necessary due to mortgage obligations and Patten’s cancer treatment, which required her to get a double mastectomy.

When the couple was ready to repay their debt, the HOA told them that the six-month period they had to redeem the property had passed. Under a new offer, they should have paid $10,484 by May to get the property back.

Newton filed for an emergency stay, and the couple created a GoFundMe page trying to raise money to buy back their home as Patten continues receiving cancer treatment.

It was only during the latest HOA board meeting on Wednesday night that the HOA changed its mind and agreed to reverse course, accepting to work with Newton for a payment plan that would allow the couple to remain in the home.

During the meeting, Shaw reportedly said the issue could have been handled better. "The most important thing here is that now there is an open dialogue with two parties that understand it could have been done better," he said, according to Realtor.com. "So, that being said, it could have been done better."

Newton and Patten have raised nearly $40,000 so far on GoFundMe, though Newton told Realtor.com he will not touch the money unless a payment plan is agreed on.

Newsweek contacted Augustus Shaw IV for comment by email on Tuesday and Newton was contacted for comment via GoFundMe.