Please talk to an experieced Real Estate Consultant to verify the current value of that property and value projections based on current market activity. There are lots of buyers out there nothwithstanding all the negative news the media lives for!
You possibly can rent the property and hold on to it until the market turns. At that point, you can go ahead and sell outright or consider a 1031 tax deferred exchange. The rental market in San Diego is very healthy as many people who have lost their homes, are moving into rentals. Feel free to contact me at your covenience.
Certified Short Sale Specialist
I have provided a link to the Lawyer Referral Service sponsored by the North County Bar Association. They offer a free 30 minute consultation.