Even though you own the house...I strongly suggest that you sell up and move to a new place. Sounds like the waters there for you have been poisoned..and for this I'm so sorry.
I loved my home that I had lovingly restored over an 18 year period...but without community life can become very isolating. I finally sold late last year and moved to a different State, and my abomination of a neighbour rarely even enters my mind now.
I could go after him, make him pay for what he did to me,prove to everyone that I was the victim and he was the aggressor...... but I would rather be safe & happy than right.
I hope that you find the strength and will to move forward from this Marylin...life is meant for living.