Unless stains are removed through a special treatment, the stain will become permanent.

But pre-2008, most foreclosures were due to the 5 D's - Death, Disease, Divorce, Drugs, and Denial - where people end up in a situation where they are losing their home, rather than just being underwater and walking away.

I've never heard of any special tax treatment based on who originate a loan nor is that proper accounting under generally accepted accounting principles.

First, if your client is asking about tax treatments, your response should be that he should pose the question to his own tax professional.  

Bogota during the Drug Wars?

He has gone on to partner up with the VA on their initiative to house troubled veterans within walking / public transit distance of where they get their treatment for PTSD and other disorders.

The biggest problem we have is drugs, but those are fairly easy to screen for.

I had a family of five and treated mine every month with a bio treatment.

What do you do in a case like this where the seller vacates, but their adult child refuses to leave, doesn't come to the door or respond to notices to vacate the property, and uses the house as a drug den?

You're in no place to offer or suggest advice when it comes to treatment of a veteran.