SAN DIEGO -- Many homeowners are turning to short sales as an option before they default on their mortgages.

It is a predicament many homeowners do not want to be in.

"Now I have a house with a payment that's very, very high ...," said homeowner Corey Goldstein.

Goldstein bought a condo in University City last year, and now it is worth significantly less.

"I paid $500,000 for it and it's worth 30 percent less," said Goldstein. "It was actually the worst investment I ever made in my life."

He hasn't missed a payment yet, but Goldstein has chosen to cut his losses and put his condo up as a short sale.

"I've got to do something because I can't deal with it anymore. I can't make it anymore, I don't want to handle it anymore," said Goldstein.

Essentially, a short sale is when the bank sells the mortgaged property for less than the outstanding balance of the loan. The proceeds are turned over to the lender in full satisfaction of the debt.

Real estate broker Matt Battiata said a short sale is a great option for homeowners.

"They save their credit, they can get rid of the property and get out of all their debt and not have the lender going after them after the fact," said Battiata.

Unlike in years past, Battiata said struggling homeowners now have options.

"The worse case scenario is to let your home go to foreclosure because there's a slew of issues associated with that. Your lender can go after you for what they lost," said Battiata.

Goldstein said there have already been several offers on his condo.

He said he hopes he could free himself from this financial burden soon.

Experts said it is important for homeowners to note that short sales still affect your credit, but not to the same extent as a foreclosure.