My understanding of the Texas Property Code is that the Condo HOA can in fact foreclose on the owner's particular unit for cause (non-payment of dues, violations of CCR's, etc.) as long as formal notice has been given and received by the Owner and the HOA follows all proper foreclosure procedures (ie. public auction on the 2nd tuesday of the month at the local county courthouse). Once the HOA foreclosure has taken place then the owner still has a 6 month right to cure and pay a statutorily regulated rate of return covering all costs plus the profit to the Condo HOA that did originally foreclose.
The interesting part then becomes what happens to the original note holders. The HOA is not allowed to 'wipe out' any superior mortgage liens that were already in place (1st & 2nd liens) that were already secured against the proeperty at the time of HOA foreclosure. The Legislature changed this rule some years back. At this point, I believe the prior mortgagor is still responsible to pay the note although, if they don't have the funds to satisfy the HOA, then a event of default is probably around the corner.
From here, the question is what happens to the HOA that now owns the property subject to the lienholders that will likely invoke the 'due on sale' clause on the mortgage should a change of ownership or payments not be made. Odds are that the 1st lien holder will enter into foreclosure proceedings at this point. There are probably many different rabbit trails you could go down on who owns what from this point onward.
Your better off talking to an attorney, but this is my take on how to best answer your question.
I do think you might want to contact a lawyer so that you can understand your rights in this case.
Sounds like that happened.
I've linked in the Texas Uniform Condominium Act in case it has something that can help you.