Question about foreclosure

[Account Closed]

If I pay my mortgage off and own it outright, the bank no longer has it's hands on it. If I then go buy real estate with leverage as an investment, and there's a crash and I have to foreclose on that real estate, could my house be taken away because of the debt involved? Or no because I own it without a bank? I'm assuming they can repo anything, but I'm new to this and don't know much about foreclosures. Thanks

[Minna Reid]

It depends on whether your state is a recourse state. In some states, lenders recourse is limited to the property they are foreclosing on.  In other states, lenders can foreclose and if they are not made whole by that one property, they can sue for the deficiency and collect against all your assets, including other property.