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That would make me ten shades of furious.
You should put a "No Trespassing" sign up and suggest that your neighbors do the same and that if he's seen in posted yards, they call the police.
I did a quick google and found this:
"Trespass
Not every issue pertaining to the protection of private property rights derives from government action. A person or persons may enter upon the property of another without the owner's permission, causing a reduction in enjoyment which may be nominal or significant. This unconsented entry is called a "trespass" and is a recurring concern among landowners and land managers in largely urbanized Northwest Indiana. The problem may also arise where unwitting or irresponsible individuals wander from public beaches or other recreational areas to private lands or environmentally sensitive public lands.
Trespass may be either civil or criminal in nature. Civil trespass is a common law tort which may be established by the landowner or whoever claims the harm to property. Entry upon the property of another "without right constitutes the common law of trespass."15
Criminal trespass is controlled in Indiana by statute. A person commits a criminal trespass who (1) not having a contractual interest in property, knowingly or intentionally enters the real property of another person after having been denied entry by the other person or that person's agent, either through a personal communication or the
posting of a notice at the main entrance to the property; (2) not having a contractual interest in the property, knowingly or intentionally refuses to leave the real property of another after having been asked to leave by the other person or that person's agent; (3) accompanies another person in a vehicle, with knowledge that the other person knowingly or intentionally is exerting unauthorized control over the vehicle; (4) knowingly or intentionally interferes with the possession or use of the property by another person without the person's consent; or (5) not having a contractual interest in the property, knowingly or intentionally enters the dwelling of another person without the person's consent.
The crime of trespass is typically a Class A misdemeanor but it is a Class D felony where certain aggravating circumstances are present.16 The county prosecutor is responsible for the enforcement of misdemeanors and felonies, including criminal trespass[/i].17"
http://www.in.gov/nrc_dnr/lakemichigan/prorights/prorights2.html
If he gets busted enough times, no matter how mentally damaged he is, he'll either get the message or whoever bails him out will make him behave himself. If he pulled that here in Texas, he'd get shot. It might be rocksalt in the shotgun if the homeowner is liberal or it might be triple aught pellets if they're not.