Im not sure what to do with these cats?

Hi Im wondering if i should report cat abuse?
   
Our neigbours have two cats and both of them are very sweet and loving but they are extreamly thin and they always come to us for food, water and love.
   
I have never seen the cats in side there house so i think they are left outside in all of the seasons and the one cat has all of these scabs all over his body and about 5 big lumps on him. These people that own them are not the nicest people so that is the reason im trying to figure out what to do.
   
Nicole.

Hi, Nicole.
   
The cats are definitely neglected. If you call the animal shelter, they will likely take the cats away from the owners. However, you don't know if they'll get a home or not.
   
Do you want to take them in yourself, make them your own? (I think I detect a tone in your post...) Do you have room for them? Can you afford them (especially vet bills)? Since they already like you, they'll likely be glad to live with you. Or, do you consider it your duty to rescue them, & think you can find a home for them if you can't keep them? You have to answer these questions to yourself before proceeding.
   
You say the neighbors are "not the nicest people". How bad are they? Do you feel like you can talk to the neighbors without being in danger? Do you think they'd be willing to talk to you about the cats? Is one person there easier to talk to than another?
   
Before you try to pry the cats away from the neighbors, call the local animal shelter & ask what the standard adoption fee is for two cats. You may need this information later.
   
If you do want to raise them yourself, I have a suggestion: you could go over & ask calmly if you can talk to them about their cats. Pick a time when the most approachable person is home, preferably on their own. You have to be VERY diplomatic when you do this. Take a friend for moral support if you'd feel more comfortable.
   
When you talk to them, do NOT sound judgmental. Just sound worried about the cats.
   
Tell them: "I've been a little concerned about your cats. I noticed that they're kindof thin & one looks like it needs some medical care. I'm an animal lover - you know how we animal lovers can get - & I'd like to help the cats if possible. Would you be willing to let me adopt your cats?"
   
If they say Yes, then you can just collect the cats & get them home for proper care.
   
If the neighbors hedge, & dither, you COULD offer them money. It depends on how much you have, & how they react to the idea; you have to read them & guess how they'll react to the idea. (This may get them to bite: everybody's short money these days.) If they smell some money, they may be willing to play ball with you.
   
Say, "I'd be willing to buy the cats from you, because I was going to go adopt some anyway, & I would have had to pay an adoption fee, so this would be simpler for me, I won't have to fill out any forms. The adoption fee at the shelter is [fill in amount here], so why don't I just pass the money I would have spent on to you rather than to the county?"
   
If they agree, then you can arrange the transaction.
   
"How about I type up a bill of sale, so it's all clear & above-board? I like to have records, and this is the easiest way for me to have a record."
   
BEFORE YOU GO OVER TO THEIR HOUSE, TYPE THIS UP & HAVE IT READY:
   
Type a simple paragraph headed "BILL OF SALE" that says, "John and Mary Neighbor agree to sell two family cats (description: one gray tiger cat and one black and white spotted cat] to [Nicole Smith] for [amount of money]." Print 2 copies, one for each household. You all sign both copies, & each keep one.
   
Tell them: "This way, you won't ever be responsible for any costs for the cats like vet bills, because this is a bill of sale between us & I own the cats now."
   
So you'll own the cats legally.
   
That's my idea. What do you think of it?

Thank you so much for your advice!