Suggestion:
A foreclosure is a civil suit so yes you can be sued for foreclosure. I would recommend if you are behind on payments and can't make them up offer a deed in lieu of foreclosure or a short sale. Mortgage lenders are more than willing to work with people these days especially if they are willing to work with them.
The problem with a lot of foreclosures is lack of communication. If you talk to your lender they will work with you.
As for your other property, it is untouchable.
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You have too much at stake to not consult a real estate attorney.
Yes.
You have the ability to pay, you just don't want to. You could take out an equity loan on the property that is almost-paid-for and get caught up on the other one so that it would not go into foreclosure. That is how the bank is going to see it who has the loan on your investment property. Not sure what the law is in California, but in some states the bank can and will put a lien against your almost-paid-off property for the difference.