The HOA made a big mistake by foreclosing on you, if that is what transpired. Now, your lender can foreclose on the property and the HOA will end up with nothing. Once the HOA forecloses, their reserves will be depleted each and every month, since your portion of the HOA fees are not being paid. Also, all the county taxes are now the responsibility of the Home Owner's Association. You want to verify that the HOA did not just put a lien on the property. I am not giving you legal advice here, but I had a similar situation happen with my client:
The HOA foreclosed on an active military owner, but the BofA, who held the 1st position mortgage, was aware of the law that prohibits foreclosures on active military owners. A full 2 years later, the seller worked with the HOA to short sale the home, and get a new Buyer/Owner to resume making the HOA payments. This enabled my buyer to remove the foreclosure on his credit report and benefited all the parties. Bofa was able to get the negative-performing asset off their books and the HOA can now resume collecting fees to remain economically viable. Good luck -- let me know if you need assistance, but your lender needs your permission to discuss your loan.