Consequences of Foreclosure for Landlords

[Steve Burt]

Hi, I have been researching this online but have not found a definitive answer. I will try to keep the question simple though I think there are a couple of scenarios (whether you own a rental via an LLC or without one, whether you use conventional or FHA loans).

If you purchase a duplex, with let's say 10% down. You make payments for a couple of years, but then a recession happens and the value of the home is much less than the remaining mortgage, so you opt for foreclosure. Could the bank pursue other money (IRA, 401k, taxable brokerage account, savings, checking etc) to try and recoup what they owe? Would that very by state, I am in Texas.

Additionally would this foreclosure ruin your credit even if the property is in an LLC?

Thanks