The homestead exemption protects this equity against creditors. The document must then be recorded in the County Recorder's Office. These offices are located in downtown San Diego in the County Administration Center at 1600 Pacific Highway, Suite 260 and in North County at 334 Via Vera Cruz, Suite 150 in San Marcos. Debts not protected by a homestead exemption include foreclosures on mortgages, mechanics liens and back taxes. Judgment liens awarded to creditors before you record your Declaration of Homestead are not covered.
Some lenders require the removal of a Declaration of Homestead before a new loan is approved.
You can remove the homestead exemption at any time by recording a form called Abandonment of Homestead. If you record a homestead on another property, the homestead on the first property is automatically canceled. When you sell your home, the homestead is also automatically canceled. The homestead exemption will not affect your property taxes. The two programs are totally different.