I believe the code says "if a veteran holds legal title to a property secured by a VA loan but does not possess equitable title, this situation is considered 'not a disposition."

They seem legit insofar as everything seems legal and kosher.  

Isn't it unlikely that a homeowner who cant afford a 2-3k tax bill would even challenge this legally?

Go as high as you can go legally. 4.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

It is legal and very lucrative in some parts of the US. 

You can buy my book, the book from Brandon in the BP bookstore, or Every Landlord's Legal Guide by NOLO. 

And, the longer you wait to act, the longer the squatter stays - and even gains some legal protections to stay while your waiting on a slow court system to act on an eviction. 

Because I'm not an accountant or versed in tax code and law wouldn't I want a CPA to ensure everything is legally tight and as advantageous as it can be? 

In 30+ years we've been sued 1x (legal blackmail over a tenant's drunken trip/fall) which the insurance company settled for $1,500.00).We've been using some privacy tactics to keep our names off the county recorder and the target off our backs.Further, we review our insurance coverage and premium annually, just to keep on top of any changes.As with all insurance, it seems to be a waste of money... until you NEED it!