I think they can. Worse yet, if I am not mistaken their foreclosure is a judicial foreclosure, unlike the trustee foreclosure, the HOA foreclosure can sue you after the fact for any damages or losses. The can get a judgement, garnish your bank accounts.
I used to work at BofA and one of my jobs was to be a go between between the loss mitigation dept and the customers who were losing their homes. So I have seem about everything.
My guess is that the property value has come up and the bank and the HOA feel like they can kick you to the curb and get their money.
If they HOA forecloses and they end up losing money they can come after you for the loss, the bank will have to take the loss as they will be foreclosing based on the Trust Deed.
So, If your home is worth enough to pay everyone off and have some money left over, you want to file chapter 13 and stop the foreclosures and sell the home. On the other hand if you are upside down.
You basically need an attorney.
Feel free to call my office and review your situation as it is a complicated one.714-968-2500