It doesn't.
you can homestead you house for the price you paid for it
The homestead exemption is worth thousands of $ on a tax return.
In some states, the homestead exemption is automatic -- that is, if you live in your house, then the homestead law applies automatically. In other states, you must file a "Homestead Declaration" in order to put potential creditors on notice that the house is your primary residence. If you file the Homestead Declaration, then you are entitled to the protections of the homestead law. If you don't file the Homestead Declaration, then you're not.
Typically, the county government or assessor's office authorizes a homestead exemption. Each state has specific eligibility requirements and application processes for homeowners to qualify for this tax relief. The exemption is usually granted to primary residences to reduce the property taxes owed by the homeowner.
I doubt you can homestead your house in Orange County. This area in California is very developed and homesteading is for undeveloped areas.
Typically to apply with a homestead exemption, you will need your W2 forms for the past few years, your mortgage statements, a house assessment from an accredited appraiser and your identification documents.
You may file a new homestead exemption by following the statutory requirements explained at the link provided below.
If it has some equity but not more than the exemption, and if you are current on your mortgage payments. It may also depend on your state homestead laws. Bankruptcy is a Federal Court action and has nothing to do with State Homestead Laws! Equity is irrelevant to whether you can keep your house. It may affect whether you want to reaffirm the mortgages or not. Bankruptcy law specifically allows states to require their exemptions. Most states require you to use state exemption laws, including state homestead exemptions. A handful of states allow you to choose federal or state exemption laws.
In most states tax abatements, deferments, and exemptions depend upon the qualifications of the owners of the property. When a property is sold the new owners must apply for any abatement, deferment, or exemption. The property is assessed and taxed as an other taxable property unless you apply for and get approval for homestead exemption status. The qualifying requirements vary from state to state, and some states (Virginia for example) have no homestead exemption at the present time.
Generally you can only file a homestead for your primary residence. You should check with an attorney before filing another one. The second homestead to be filed may extinguish the first depending on your state laws.
It would not affect your credit at all because you are merely the tenant and are renting the property. Since you do not own it, and the owner is the person that has the lien filed against them, it will not affect you or your credit.
Not if your home is exempt. Check your state's homestead exemption laws. findlaw.com is a great resource. Actually they can forclose without you doing anything.