Right now the the appraiser are coming in with appraisals which reflect the true market value. And sometimes those appraisals are 40% below the value of a year ago.
So your condo in San Diego may be down big or even your single family home. You may wish to offer a deed in lieu and concurrently set your home up as a short sale.
1. make sure you have out clauses in your listing contract
2. make sure you add clauses to your purchase and sale agreement
3. Don't go into default on a first loan if you have two loans until after you speak with a san diego real estate attorney who knows how to negotiate pre-foreclosures.
more information on San diego short sales