An action to foreclose a lien is like an action to foreclose a mortgage where the mortgagor (borrower) has failed to make payments: it is a legal action to get a court order that the property be sold to satisfy a debt--in this case, a lien which was filed against the property for some reason (possibilities include if your parents sued and did not pay or did not pay a contractor). So yes, your father could lose the house, and you and he are strongly advised to retain an attorney to help him oppose such action, understand what the lien is for, and try to deal with the underlying debt as well.
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