It takes a long time for them to actually foreclose and there are legal fees involves. The board can take back shares and that usually happens through their attorney. The case usually gets sent to the cop attorney so they can send a warning letter, if that doesn't work the lender gets involved. The board takes precedence over the bank and if the board takes back the shares the bank is left with a note. Thats when the bank can foreclose on the buyer.
Most states have some sort of legal protection against a persons homestead meaning that a creditor would be unable to demand the house and make a person homeless to pay a debt that was not secured by the home. Of course, your best answer is going to come from an attorney that specializes in real estate. They will be in the best position to show you what you could do to get some payment - if not all.... more