Which statement correctly completes the following sentence about Discharge of Qualified Principal Residence Indebtedness (QPRI)? This type of discharge from debt __________.

Can be defined as the restructuring of a loan that allows the borrower to retain ownership of their home.

Is available for a second home.

Is not likely to trigger cancellation of debt income.

Occurs when the bank takes the home from the borrower to satisfy the mortgage debt.