I hear you on the neighbor and the things that he is coming up with. I was put in a similar situation earlier this summer, but I nipped it in the bud very quickly and yet, the neighbor had the nerve to call and leave me a message today to remind me that he's going to be out of town for the eclipse and would I please still take care of his dog and bring him to my house to play in the yard while he's gone, get his mail and check on his house. The funny things is that I called and left a message 2 1/2 weeks ago that I was not going to be doing this stuff as I had relatives coming into town and would not be around to do this stuff for him. Keep in mind, I only know him and his mother in passing. Give them an inch, and they most certainly will take a mile.
My advice, just wave and keep on going. No need to stop and chat up the person.
Sit quietly, the answers will reveal themselves when you least expect them to. The past is gone, the present is a gift and you need to focus on today, allow the future to reveal itself when it is ready.