You sound as though you have a case for hardship.
I would ask a Realtor knowledgeable in short sales and loan modifications to help you. I'll bet one of the Realtors on this list could do it.
Your main goal is to learn your options and the pros and cons of each. Then you make the call.
If it comes down to you might want to consider paying the HOA fees. With a lien the property will not be able to sell at all. I
When the short sale is closed, the HOA will generally be made whole (or at least the last six months will be paid). My best advice would be to contact an agent in your area that is experienced with short sales and start the process of getting the information you need to make a decision. You may wish to speak with an accountant or real estate attorney to verify that it won't have extraordinary consequences for your particular circumstance as well.
Sorry this is happening to you. You're in good company, though I now that doesn't lessen the hardship. Hope it all works out satisfactorily for you. If you'd like me to recommend a great short sale agent in the area where your home is located, just give me a call or email.
Louise Warring, e-PRO, CSP, CNS
Certified Short Sale Professional
Coldwell Banker Residential Real Estate
Feel free to give me a call to discuss the details. It sounds like you are in a potential hardship situation which is necessary to actually conduct a short sale.
Century 21 Fisher & Assoc