A neighbor invaded our home (no joke) Don't know what to do.

[Pachamama]

4. How old is this woman? Could be mental illness....Sleepwalking?

Years ago in our neighborhood a friend woke up in the middle of the night to find a woman standing in her room talking away. Strangely her dog (a sweet golden retriever named Buddy) didn't even seem to be bothered. When my friend asked her what she was doing as she talked constantly about one matter or another and kept saying she couldn't find her bedroom, my friend called the police from her cell phone and when they came, said she lived less than 4 blocks away and had done this apparently before and had dementia.

It was a sad situation, but also scary to find yourself suddenly awakened with a stranger in your house. You feel so vulnerable and it is going to mess with your sleep. You were lucky. I think this woman was mentally ill or on drugs like you said. It was thankfully not someone intentionally breaking in to your home.

In time that fear will go away and you will sleep again. But locking your doors is always a good idea, especially at night.