Very sorry to hear of your situation. Here are some answers (my opinion) to your questions.
California is a non judicial state. If your lender was going to go after a deficiency they would have to file for a judicial foreclosure. Whether they would do this or not is anyones guess. From what I have heard Judicial foreclsures are not that common. Consult with an attorney.
Yes, It would be a great idea to work things out with the bank. Foreclosure is the worst thing you can do.
Yes, Bankruptcy is always an option. It is the worst option. Consult with an attorney.
I always recomend trying to work things out with your lender first. In order of best to worst. Loan Mod, Short Sale, Deed In Lew, Foreclosure, Bk. Of course your situation will dictate your decision. But you should definately explore all options first.
Yes, I have heard of EMC, but the rest of your question is cut off.