I think you've misunderstood the meaning of a Deed of Trust. There are not two owners in front of the HOA, there's two DOTs. The DOT gives the lender/beneficiary the right to sell a property should the borrower not comply with the terms of their written agreement in order to recoup there costs. It does not give the beneficiary the right to own the property. The beneficiary can only own the property if they offer the property for auction through foreclosure and no one buys the house at auction.

What Mer is saying is that the HOA may foreclose and become the legal owner with all rights and privileges. The fact that there's two DOTs in front of them doesn't change this. The HOA simply collects the rents by renting out the unit until one of the DOTs in front of them forecloses. It costs the HOA very little to foreclose and even if they get "bought out" by being foreclosed on by the other DOTs, they have at least recouped some of their costs.