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Friend is bipolar and told neighbor lies

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I made friends with a girl who turns out to be bipolar, she has spread terrible untrue stories to our neighbor, who believes what he has heard from another source who happens to be friends with the bipolar girl. The neighbor has stepped on my property, accused me of lying, cussed me,. He has slandeed me to the neighbors who now shun me. My husband and I did not do or say anything except deny his alegations and point out the source was a bonified lier, but he apparently hates me. I have been depressed, and uncomfortable enough for us to put our beautiful house for sale. Our house has not sold yet, but I am getting tired of the neighbor. what can I do?