Unfortunately, I have known people who lost their homes to their Home Owner's Association because they did not believe it was possible. Obviously, as Jim Johnson suggests you should seek legal advice.
It is also my experience that the HOA does not really want to foreclose on your home, they just want to get paid. Often the only way they can get home owners into conversation is to start the foreclosure process. If you know you owe the dues, you should contact the HOA and see if you work out terms with them in exchange for them stopping the foreclosure proceedings. Make sure you get everything in writing. If you can get to this point and then have a lawyer review the agreement, this will keep your legal costs down. Of course, if you are disputing the dues, then you should contact the attorney first.
Best of luck with this situation. Many Home Owner's Associations are difficult to work with as they are made up of volunteers who have other obligations and commitments for their time. The sooner you start the process, the greater your chance of resolving it successfully.
RE/MAX Palos Verdes Realty