I have reviewed Federal 2015 Publication 523 (https://www.irs.gov/pub/irs-pdf/p523.pdf) to see if I have a qualifying circumstance but I feel like I need a tax attorney to confirm if my circumstances apply or not.

Well the whole truth is that  sometimes to expand our reach , we try and be efficient and partner up if the circumstances are right .

As a general rule of thumb, a dollar in your pocket today is more valuable than a dollar in your pocket 10 or 20 years down the road - but personal circumstances and plans may dictate other actions.We have properties, held in a company, on which we claim Capital Cost Allowance and others in my name personally on which I am not claiming CCA (as I plan to roll these over into a holding company and do not want to be faced with a recapture).

Doesn't mean that a special assessment can't happen due to something unforeseen, but at least the well known items should be covered by the reserve funds. 

I would NEVER under any circumstances as a lender go behind a mortgage in a Judicial state.

This is not a traditional deal, if circumstances were different I would walk away from this house, but my parents are stuck with it and I want to help them sell it and not have it cost me a penny at worst.

Would it be safe to assume the family of the institutionalized individual typically sells the property in these circumstances or is it at times the nursing home itself that orchestrates the sell?

I have saved 70K for possible renovations / unforeseen costs but was under the impression that other VA loan users had gone about this with 0 down on all properties single or multi.

Your offer depends on the house, and the circumstances surrounding it.

Given the above circumstances, would piggybacking a 2nd loan (HELOC) be an option?