Yes, in the state of Texas our HOA's do have the legal right to foreclose on your property for unpaid association dues. However, that does not mean that they can take your home into foreclosure and wipe out your mortgage. This is what we would call "foreclosure non-free and clear". The buyer of your HOA bids would only receive ownership of the house, but w/ all higher seeded liens still in place. It still means that it's not a very good thing for your, so I would highly recommend paying your dues before the matter escalates to that point.
Best of luck.