The home phone is no longer working properly. So I did a test by taking the phone outside to the phone interface and it worked fine. But when I tried connecting the wired phone to any of the phone jack, there is no signal. Just once after removing the connection in the outside the house interface and reconnecting it back again, I was able to make a phone call from inside the house. But After finishing the call, I got that siren sound from the phone and Then it showed that the line was in use on my cordless phone led light.

Now I read on the internet that if the phone works when connected from the outside interface, then the problem is from the inside. My question is what about the wire connecting from the outside interface to inside the house. What if that connection is bad? How can I test that? Is it possible that is the problem since I was able to place a call after disconnecting and reconnecting the cable outside? Plus I doubt that all the wiring in the house is bad regardless if it is based on star or daisy connections. Any ideas?

If the problem is inside wiring, how can one rewire the jacks? Is there an inside interface connection as well? I looked in the basement but could not find anything. Thanks

Waiting patiently for help.

Probably 99% of phone line problems I see are at the jacks, or any connections/splices.
I would look inside the phone jack to be sure they are not coroded(black or green usually). Try another Line Cord.
Since your phone says line in use, it could be shorted or open, and will show "In Use" due to low voltage.
Call your house, if it rings and rings, line is open, if it rings busy, it is shorted.