Now you're not in a good position since they have clouded your title. HOA did take title from you but you can redeem your indebtedness now and get title back. The clock is ticking. Contact them and ask how much more to get title back. It is doubtful that the original $1350 will cover the new amount due after foreclosure.
As to collecting rents, the owner has a right to collect rent from someone living on the property. The question is after foreclosure, who owns the property - you or the HOA? Would it make sense for the "new owner" to tell the tenant not to pay rent at all? No, but he might have been told not to pay you (the ex-owner) but to pay the HOA (the new owner).
Damages caused by action of others can be claimed in Justice of the Peace Court, but you have to have evidence of the damage and that you tried to mitigate the loss. First, get title back. Call an attorney and discuss your problem.
The HOA is probably painfully ignorant of the fact that the property can encumbered with your mortgage lien. You can still pay it each month even though technically they own it. If no one pays it, the mortgage company will foreclose the HOA. Too bad, so sad. Often HOAs think they get the property free and clear. They don't. Besides taxes already due and those that will become due, the foreclosed property has all superior liens still attached. Normally, the first and second mortgage are excluded from the HOA's claim of priority by a subordination clause in the covenants. Ask your attorney what you should do.
Ronda Allen, Realtor and Certified Purchasing Manager
CEO of comingsoonhomes.com
RE/MAX Dallas Suburbs