He can make it clear that you'll not be paying, but rather will be suing the HOA over the unreasonableness of the fine amount in comparison to the violation and the poorly written HOA Rules that could be interpreted multiple ways.

So we set up a meeting with the agent and broker and they completely backtracked and said they do not do this type of thing, picked apart the wording, and the broker said that we are interpreting things differently than they do, and they had no interest in buying it, while the agent was looking at the floor and did not say anything.

You can read anything anything you want and try to interpret what you read to support your position but you’re just “urinating into the breeze”, as they say. 

I'm not a financial professional and am regurgitating only my interpretation of general planning advice, so take these comments on that basis alone. 

According to my interpretation of the code, this is OVER disclosing.

If you don't want to see whats happening in Portland happen elsewhere....then don't open a door that allows them to gain a foothold like this.Words have an extremely powerful effect on how people interpret the meaning and connotation of its purpose.

It's open to interpretation by the judge, it's sometimes enforced, sometimes not, it's used to bring lawsuits to "shake down" investors, it's used to harass, it's taken out of context, it's used in "overreach" for control, it's modified by case law, it's intent is often misunderstood and it always takes money to fight the accusation.

The law is interpreted as "anyone who THINKS he may go into foreclosure".

As @Jim K. pointed out (at least in my interpretation), one should live within their means. 

Otherwise you end up making decisions based on feelings or emotions...and end up choosing a Single person over a Couple which could be interpreted as a FH violation (especially when repeated over time).