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I believe you are misreading the statement and rule.
The actions which result in a loose ball play happen in or behind the neutral zone (pass, fumble, kick, etc.), but the rule clearly states these actions all end when it is possessed or otherwise declared dead. So if the loose ball action is a forward pass, the pass ends when it is caught or incomplete. The loose ball play will include anything up to the end of the pass. The same thing for a fumble behind the line of scrimmage. It ends when the ball is possessed or otherwise declared dead. That also ends the loose ball play. If the ball is then passed, kicked or fumbled again behind the line of scrimmage, the length of the loose ball play is now extended.
Often the determination of loose ball plays and running plays during a down aren't determined until the down is complete. That's why we mark fumbles beyond the neutral zone with bean bags.
Please keep asking questions. The penalty enforcement rules can be very complex, but once you understand the concepts of basic spot, types of play and all-but-one, it becomes much more clear.
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