My association put a lien on my house. Do they have to notifity me? How am I suppose to know what their next course of action is or does it just sit their unil it is satisfied? How can a court issue a lien without knowing both side to verify it the amount is correct or it the debt is even owed?

Typically a Home Owner's Association, as well as contractors, can place liens against properties without actually going through the court to obtain a judgement. Because the debt (or alleged debt) is directly tied to the property itself - not just to you as an individual - with the proper documentation they're allowed to do it. I believe the burden of proof would fall to you, the property owner, to show that the debt is paid and they haven't lifted (or improperly placed) the lien. The purpose of the lien is so that you can't sell the property without them getting paid.

If you believe their figures are in error I'd recommend asking the treasurer of the association for a statement of your account from whatever date you believe it WAS correct to present. Then gather your cancelled checks or whatever payment proof you have and take it back to them. If they won't remove or adjust the lien, take your proof in to the county yourself...