I'm sorry to hear that you're in such a difficult situation. If I understand your question correctly, you seem to be facing foreclosure by the HOA and a lender who won't work with you on a modification until the HOA is dealt with. Not knowing all of the facts of your situation, I wouldn't attempt to give you any kind of specific advice. But I will say, generally, that it sounds like you need at least some leverage to try to get the HOA to a more reasonable position. Though I realize from your question it may be a hardship, I would recommend hiring an attorney to analyze your options and handle the negotiations. An attorney may be able to come up with a few tactics that would encourage the HOA to negotiate a little more reasonably with you.
Nothing in this answer is intended to be construed as legal advice. In order to obtain legal advice on any topic, you will need to consult with an attorney on a private, in-person basis to discuss the specific facts and circumstances surrounding your issue. Neither this answer nor its particular contents are intend to create an attorney-client relationship between you and William B. Short, Jr. or between you and Coats | Rose, PC.
In 2011, Texas adopted some new legislation regarding what an HOA had to do in order to collect delinquent payments and recording certain information regarding its payment plans. Some HOa's complied;some did not. You likely wll have better chance of getting a lower payment plan if you have an attorney so HOA attorney does not think he can roll all over you. This is risk to HOA if bank forecloses because if property does not sell for enough HOA lien is extingusihed and it will not get paid.
If they foreclosed you are no longer title owner to the property and then can evict. You can a two year window to redeem the property. Sounds like you should try a chapter 13 bankruptcy. You can cure the HOA over the next 2 years and stay the eviction process.