I wrote a long reply and timed out and lost it!!!
okay trying again: First off, I think its wonderful of you to provide Nikki a home. You wrote in your note, she is most likely not going to be able to take him back - if there is a possibility, I would maintain contact to maintain the relationship and alleviate separation anxiety for both.
If you are able to, could you ask the lady what her wishes are? If you are willing to take Nikki in for occassional visits, then she could let you know if thats what she would like to see happen. I am trying to imagine never seeing my pup again if I couldn't care for her, and I would want to see her. But each person is different. Also, they use pups as therapy dogs in part because they bring happiness and positive effects on health, perhaps visits with Nikki would be really good for her?
In terms of whats best for Nikki, I adopted a 5 yr old pup and have had her for a year now. When we return to her home of origin for visits she is all love, hugs, kisses and cuddles for her previous owners, but is happy to leave with me when the visit ends. It took her a while to attach to me, but she did over time. As Nikki becomes attached to you as his primary caregiver, he should be fine to visit with her and leave with you - best of both worlds, maybe?
These are just my thoughts, I don't know what the answer is, best of luck with whatever you decide and I hope the little guy settles in soon!
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