Yes they can if the owner does not pay their maintenance fees or association fees. They usually will give notice and then file a Non-Judicial Foreclosure. A Non-Judicial foreclosure can take just months to foreclose. I know of a elder lady who did not know this and lost her Aiea townhome only owing $75,000 on her place. The place was worth at that time over $400,000. She ignored the letters from the association and kept on paying her mortgage but not the association dues. The association foreclosed on her.
Another story a high school friend of mine posted that she could not find a job and was behind on their mortgage. I asked if she had been paying her association dues. She was not. I told her to immediately work with the association so they do not foreclose. She has a job now and is currently paying down her back payments owed to the association. All is well with her.