Man, that's irritating. I'd be having no part of that, family or not. It's one thing to help out friends/family once or twice if something truly random and unfortunate happens to them, but if they're just financial clowns, nope, I am out.
Thats kind of where I am already at, the wife is 80% there, I just really like lending huge quantities, in this case there is no amount, think how long is a piece of string, to family. Also, because I am not there, I don't know who they are hiring, if the work is getting done right, what else should be done while they are in there. Oh, I forgot, the house has to be rewired at some point because knob and tube wiring tied into. To me, its like doing a full, frame off resto on a 2004 Elantra, there is no way they will ever get their money back because of the houses location and neighborhood.