They can indeed take your property over. However, few of them do as they realize many people are upside down thus making that move useless. However, if they find that you do have equity, they may move forward with.
As to making payments, I believe you are speaking to the wrong person at the HOA. Almost all HOA's are near the point of bankrupt and they need all the money they can get. Is the situation at their attorney level? If so, contact their attorney to make payment arrangements or call their corporate off and speak to a manager.
I can see why you'd be concerned as rising HOA fees are never fun and can often change an affordable home into a not-so-affordable home rather quickly. I've heard stories about neighborhoods that were especially hard hit in the past two years because of foreclosures where the HOAs kept raising fees or simply folded. One particular neighborhood in Las Vegas that I watch a report on had only 5 residents left out of 100+ homes and the few families that were left spent their time managing the site as the HOA had folded. They had to deal with landscaping of other homes, picking up the random trash that the wind brought in, and just keep the general appearance up so as not to lose the value of their homes anymore.
The answer to your question should really involve someone from Arizona (this is the San Antonio TX part of Voices - I assume at one point you lived here in the 78247 zip code). They can better help you as laws vary from state to state. Here are a few I would recommend contacting:
Randy Hooker - http://www.trulia.com/profile/dreamcatcher/ (click "Email" below his picture)
Off of Trulia:
Jay Thompson (aka PhxREguy to most in the industry) - http://www.phoenixrealestateguy.com/contact-us/ (email and phone number provided there)
Dean Ouellette - http://deansellsaz.com/ (his contact info is on the first page)
These three are all in the greater Phoenix area, so if your home is in on of the other areas, you might want to ask them who you can speak with that is a bit more local to you and your home.
Hope that helps!
Matt Stigliano, RealtorÂ®
"Your all access pass to San Antonio real estate."
In most states HOA's can foreclose on a property. But depending on equity and occupancy of your condo's, i'm sure that will certainly be a factor before they decide to just foreclose.
Matt gave you some great references. You may also want to contact Pat Mahoney, he's a good guy to talk to;
Best of luck
HOA is held liable to enforce payment who will cover the expenses, keep property up to standards for all residences.
HOA fail the residence they could be sued. Bank foreclosed properties still have keep HOA dues.
Recommend resolve issues or they can foreclose on property.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Start going to every HOA meeting, run for the board, make your voice heard at the meetings. Do what you can to help lower the fees. Maybe that is better researching vendor bids, helping to get more bids, and adding your expertise to the board and the decisions made.
It is not a "they" thing....you are part of the ownership.....so it is good to participate in the decision making process.
If you are short on cash there are lots of things you don't have to pay, but mortgage, hoa fees, taxes, and utilities are first in order....then food. Likely everything else can be put off, managed, cancelled, negotiated, or eliminated.