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I couldn't sleep so I am catching up on some things and saw your question. I am sorry you are having to deal with this and it is hard enough to watch a sibling deal with mental illness, but harder to see children forced to deal with something they were never asked about most likely.
While the constitution prevents the Court's from taking away a person's rights even when it is likely best for them, it does allow for you to intervene into the parent/child relationship. You don't mention the location of the father or if he is involved and the age of the children would play into this as well.
If you can substantiate the abuse caused on the children one option is to seek custody through the family court. You would need to seek custody of the children and though things might get unpleasant it may in the children's best interest. Ultimately, the family court judge is required to rule based on the best interest of the children. If you could afford to retain a local family law attorney I would recommend that you setup a consult with one. You can usually get a 30 minute consult for free from most and at that time he/she could confirm your options and give you an idea as to what they would charge to handle the matter.
If you don't have the money to pay for an attorney you could always contact the Department of Children and Families. http://www.nj.gov/dcf/reporting/how/ this is a link to their page. Here you can file a complaint of neglect or abuse and make them aware that you are available for placement if they place the children outside the home. The only challenge with them is they have no obligation to report back to you what they discovered and sometimes children get caught in these governmental systems and its hard to get them back. If you retain your own attorney you will have more control of the outcome and you will also know the fully extent of any abuse or neglect.
I may take a nap later, but I will be available most of the day today for any follow up questions or if you need me to clarify one of my answer.
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