My sister and the birth father are both drug addicts. The father has been relocated to a different state to live with his sister to straighten him out but my sister has done nothing to help herself. She has left my nephew with my parents and hasn't seen her baby for over a week (it could be longer). My parents are in the process of getting custody of my nephew, but my Husband and I would like to adopt him. What do we do next?
It sounds like your parents will either be named the guardians or foster parents for your nephew. If he is placed with your parents as a foster child, the state will set up a reunification plan so they can send him back to his mother and father if they comply with the plan. If the reunification plan fails (this can take 6-18 months to determine if it failed) the state will likely ask your parents if they want to adopt your nephew. If your parents say no, they may ask for other family members who can adopt him (perhaps you).
You may want to talk to your parents about being named the guardian or foster parents now if you would like to adopt your nephew as this would put you first in line should the state decide to terminate his parent's rights. There is no guarantee this will happen as your sister or the birth father may comply with the reunification plan and have their son placed back in their home.
You will need to have a home study with a criminal background check to qualify as foster parents. A state social worker would do the home study to determine if your home is a safe emotional and physical space for a child.