foreclosure - can the credit union come after me for the difference.

[ud2005]

What is the name of your state (only U.S. law)? CA

I have a loan(5 yr ARM, interest only, resets next year) with a credit union in california(not backed by freddie/fannie). This is my first and primary home and its value has gone down 50%. We owe more than what the house is worth now. We had few hardships and hence asked for loan modification giving our income, expenditure information. The loan modification was declined on the basis that our income is still good. I am not able to take advantage of the low interest rate because of negative equity and not been able to make up for the difference in actual value versus appraised value(difference is around 250K). Instead of waiting till next year, I would like to foreclose this right away.
The credit union is in a very good financial shape and is not approving any short sales. In the event of foreclosure, what would be the impact on me. I am paying PMI every month. Will that take care of the difference amount that results in foreclosure.
1. What are the chances that the bank can go for a judicial foreclosure, in which case they can come after me for the difference amount ?
2.How do I confirm that my loan is a non-recourse loan ?
3.Is there any tax consequences for the difference amout if forgiven by the bank ?
4.Are there different types of foreclosure, if so how to go about one ?

Thanks,
ud