Yes! Unfortunately, the association has the power to foreclose the property if you are not paying their dues. At this market, if you dont have any equity then normally, they will send it to collection if you are not paying and they will put a lien also. Even if it forecloses, they will follow you for their payment, so it's better to discuss with them and explain your situation or make some payment plan.
If you cannot afford the payment then try for loan modification, so that the new payment will create some money for the association also. If you cannot qualify for loan modification, then think about doing short sale. Consult with your CPA or attorney for any tax ramifications.... more