Let me tell you about my crazy neighbor acrosss the street. Her and her husband moved in a little over a year ago. I'm pretty sure the wife has OCD, which wouldn't bother me, but if your OCD is so bad that you take it out on other people, and you OBVIOUSLY have enough money and time to get treatment, you have a problem. She appears completely normal, in her late 30s, early 40's. Thin and blonde, kind of frumpy. She doesn't have a job which is obvious because she NEVER leaves the house, I'm pretty sure she lives off her husband's income.

When they first moved in, my mom baked some cookies for them. I think the only reason why I remember was because of my moms reaction, not hurt, just kind of suprised. I guess the woman took the cookies, just said "thanks." and quicky closed the door. Soon after they moved in they tore up the entire yard and inside of the house and remodelled.

But let me tell you how this problem with my crazy neighbor started. My sister's room faces the street towards their house, and one night she was sleeping with our dog and the window was open. She woke up when my dog started barking like crazy at the window. My sister got up and looked out the window only to see what appeared to be a burglar dressed in all black peering into our neighbors car. My sister yelled out the window, "Can I help you?". The burglar, suprised that he/she had been spotted quickly tried to hide from view behind our van parked out in the street. My sister called the cops and they came quickly, but not quickly enough to catch the potential burglar. My sister, got out of bed and accompanied the cop across the street, to our neighbors house. The cop and my sister informed her of what she had just witnessed. The lady seemed annoyed that they had even bothered her, stepped out, inspected her car, dryly said thanks, and went back into her house. That was all we had heard from her in a while.

Our family occasionally have people coming in and out of our house, our relatives, friends, and my parents hold meetings once in a while, so we occasionally have our family and friends' cars parked out in the street. It started when my mom was having a meeting and one of her friends, a relatively elderly lady, had parked her car infront of their house. maybe 2 inches at most past where the curb ended. Her husband came knocking at our door and asked her to move her car because his wife was freaking out. Our guest moved the car, and there was no problem. Then my brother parked infront of their house a couple weeks later. This is on the curb, where anyone is legally allowed to park! The lady typed up a note and wrote, I have already asked you, do not park infront of my house or I will call the police!
WOA lady, good luck.

From then on any time someone parked infront of her house, including our other neighbors, she would leave a similar note, "Move your car or I will call the cops". One night my sister and her fiance parked infront of her house and early in the morning there was a cop at our doorstep asking my sister's fiance to move his car. He was really nice and said something like "I know you are legally allowed to park your car on the street, but please move your car so she'll leave me alone".
She was waiting outside for my brother in law to move his car, and out of anger my sister said something like, "Next time someone tries to break into your property, I won't do anything about it."

Now, parking isn't the only thing she freaks out about. She hates dogs! She won't let anyone walk a dog on the sidewalk infront of her house. This woman scheduals her life around my mom's routine. Every single morning my mom walks our dog at about 6:00 in the morning before she goes to work, and at the exact time my mom steps out our front door she opens the garage door and pretends to get the newspaper to make sure my mom doesn't walk the dog infront of her house. Once I walked my dog past her house, she swung the door open and yelled, "don't walk your dog infront of my house!". I just rolled my eyes and said, "okay lady."
Another time, my mom's friend, D, walked her dog up our street to give us a visit, and unaware of our crazy neighbor, let her dog go poop on the driveway. Ofcourse she cleaned up after him. I know its gross but it's legal as long as you clean it up.
So the lady comes storming out of her house yelling, "I TOLD YOU not to let your dog go infront of my house!!".
Poor D, confused replied, "What? I've never talked to you before."
"You're a smart a**."
"I cleaned it up, want to see?" D said, gesturing the poop bag towards her.
"You're an a**hole!"
Then my mom opens the door in the middle of all the commotion and lets D in.
Later, when my mom lets D out, our neighbor is outside on the phone yelling something about "dirty, filthy, stinking dogs!", probably trying to call the cops on us again.

This lady always tries to start arguments with my mom when my mom is out walking the dog. If you knew my mother, you would know she is the sweetest, most selfless little lady. Always happy, never badmouths anyone or starts arguments. She's one of those people that when she curses, it just doesn't sound right coming out of her mouth. People from her work have come up to me and told me how lucky I am, how sweet my mom is and that she never says anything negative about anyone. Our neighbor has no reason to verbally attack my mom.

One day I could not contain myself because my mom came home crying after walking our dog. The neighbor had stopped her while she was walking, talking about how I come home at all times of the night and saying that my sister only stays at our house because she doesn't have a job. My mom goes "All of my kids have jobs."
"I know what the neighbors say about you, they all talk about you!" The lady says.
My mom goes "Who talks about me? I know all our neighbors."
The lady wouldn't say any names but says, "I can make things hard for you!"
I begged my mom to let me go out and say something to her, but my mom refused and tried to convince me to let it go. I said, "Mom, she's a bad person, let me go talk to her and tell her she has no right to pick on you."
"She's not a bad person," my mom insisted.
"Yes she is, shes a bad person and she has a bad soul."
My mom refused to let me talk to her, but I can't just let someone make her cry like that. That's my mom! I promised myself that if she ever makes my mom cry again, I'm going over there, regardless of what my mom says. What right does she have to make my mom stressed out and say bad things about me and my sister?

Recently, my mom was puzzled when we got a notice in the mail from the city saying something about us needing to show a licence for running a private business in our home. We don't run a business from our home! When my mom showed me the notice in the mail, the only thing that kept echoing in my mind was when the lady told my mom, "I can make things hard for you!" I know in my heart that she has no life of her own and will try to do anything to stir up problems.

My dad thinks we should tip toe around her, you know? Try to do everything we can, not to upset her. He thinks she is trying to make everyone so mad that we retaliate against her and do something illegal so she can file suit. It would make sense for someone like her who doesn't work, to get money that way.

I don't think it's fair that she can just move into our neighborhood, try to regulate and boss everyone around and get away with it! I try not to get too involved because, unlike my mom, I cannot bite my tongue and I'm afraid if she says anything to me I will flip out! Our neighborhood was a much happier place before she moved in. What can we legally do to make her behavior stop?

Seriously, I'm clueless as to what to do.
Any advice would help.