SAN JUAN CAPISTRANO — Dotti Lesko's lawn is so tiny that gardeners mow it in less than five minutes. Yet a dispute over the lawn with her homeowners association has left her in emotional turmoil, fearing she may lose her home through foreclosure.

The association accused Lesko of violating maintenance rules with an unkempt lawn. It imposed a lien against her property after she refused to pay a $500 gardener's fee to clean her yard and repair and adjust three sprinklers.

The association then used Lesko's $258 monthly dues to pay the gardener. As a consequence, Lesko's dues became delinquent and now a management company, acting on behalf of the association, is threatening foreclosure.

Lesko is one of dozens if not hundreds of homeowners in Orange County fighting their homeowners associations. Critics charge that associations are intimidating bullies who levy unfair fines against the very people they are supposed to represent.

But lawyers for associations contend that the organizations have an obligation to protect the rights of all homeowners and that they are the only policing group to make sure dues are paid and that homeowners follow regulations.

Typically, association-homeowner squabbles are settled before they run the length of Lesko's case. In Lesko's situation, the association through its management company has chosen to rely on state law that gives it power to file a lien and begin a foreclosure process.

Lesko's case is now in the hands of a foreclosure specialist, who said it is stalled in settlement negotiations.

The work on Lesko's lawn was completed on July 16, 1990. "It's been a nightmare ever since," she said.

Lesko claims she never received notice of a hearing to argue her side. The association said it sent the notice in a registered letter that was returned "unclaimed."

These cases usually pit recalcitrant homeowners against associations in what is becoming more of a legal battleground than mere disagreements among neighbors.

"You have these homeowner associations deferring these collection actions to a law office, which is literally handling hundreds of these matters," said Mark A. Kompa, a Santa Ana attorney who has had experience in the homeowner association wars.

The tendency is to stay out of court, Kompa said. But that allows case files to thicken, more attorney-to-attorney communication and talks about settlement negotiations--all while the legal meter is running.