Squatter Takes Over $2.7M Florida Mansion

Concerned neighbors are willing to try anything to get rid of the aspiring hip-hop artist living next door.
8:20 | 08/19/14

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Transcript for Squatter Takes Over $2.7M Florida Mansion
Reporter: What happens if your new neighbor just won't leave? They move in but refuse to move out. They still refuse to leave. Reporter: Becoming a squatter from hell. My house has turned into a battleground. Reporter: Like the recent airbnb house guest in Palm Springs. A squatter nightmare. She says the guy that rented it won't leave. Reporter: But if you want to hear what may be the craziest, most outrageous squatter story, you got to go to boca raton, Florida. A city synonymous with conspicuous consumption, designer clothing, designer dogs and bombastic boats. Welcome to the aptly-named golden harbour drive, where everyone's back yard is right on the water. Rocking the infinity pool. Pretty good look. Reporter: It is a Tony enclave that not long ago played reluctant host to a strange and uninvited guest. This is it right here. Reporter: Mike avirom lives here and notices something odd transpiring at a house on his block. This is a sweet house. It is a $2.3 million, 7,500 square foot, plus-sized palace. The previous owner had money problems, signed it over to bank of America and moved out. Now a stranger is moving in, without paying a penny to the bank, and he's not alone. A bunch of guys pull up and move into this beautiful house and tell you they are establishing an embassy. An embassy for their mission. Reporter: Their religious mission? They're going to have transient families coming in and out in accord with their ministry. Reporter: And your response to this was? I don't think that's going to fly. Reporter: It gets even weirder, quickly. The new occupant posts paperwork on the house, saying nobody can enter without an invitation and two types of I.D. On the elaborate forms, the name of the man who now claims ownership, Andre Barbosa. Neighbors Google him right away and up pops the Facebook page of a 23-year-old Brazilian, an aspiring hip-hop artist who calls himself "Loki boy" after the Norse god of mischief. That is when neighbors call 911. They've changed the locks. They've put a no trespassing sign out, and they're moving in. All right, I'm going to have an officer dispatched as soon as possible. We called the police on these Right here. Squatters, they're just defiant. Reporter: The cops show up and speak to loki boy, who you can see right there on a neighbor's cell phone video. But here's where what seems like a clear-cut trespassing case gets truly crazy. Loki boy presents the police with this document, which stops them in their tracks. Loki boy is claiming something called adverse possession. The notion is that someone can move onto a property, fix it up, take care of it, and after a period of time it's their property. Reporter: It is an obscure, but very real, law that is on the books in all 50 states. If loki boy stays for seven years, the mansion is his. So this kid was pretty clever because he was using language that was very confusing for you and your force. Absolutely. Reporter: Thus begins a bizarre stalemate, with loki boy occupying the house day after day. Police, prosecutors and the bank are in a state of confusion and paralysis. Which is a lucky break for loki boy, who, meanwhile, is living large, working on a new rap video with the mansion as a backdrop. Was that frustrating for you? Very. Reporter: More than four weeks into this thing, Lyn Houston, a nervous next door neighbor, has had enough of this squatter from hell. I was going to do anything to get rid of him. Anything. Reporter: You were willing to buy that house? Yes. Reporter: You were going to take out a mortgage? No. Reporter: Just pay cash? Yes. Reporter: Cash for this house to get this kid out? Yes. Neighbors outraged to find out a squatter -- Reporter: When her phone calls to the bank are not returned, she alerts the media. We have a hard to believe but true story out of Florida. Reporter: The nervous neighbor is convinced that the nightmare here on golden harbour drive is connected to something much larger. I believe there's somebody much more important, much higher, much wealthier behind him. Don't know who. Reporter: We decide to do some digging. Remember those weird documents loki boy posted on the front of the house? There is another name on there, James Mcbride, who, as we learn, is the founder of a mysterious group called divine province. We can take back all this property that has been taken from us. Reporter: Mcbride is an ex-con who's done time for cocaine importation and run-ins with the irs. He says he hasn't paid federal income taxes in 26 years and claims he can teach you how to live like him. Mcbride is very suspicious of the media, but he agrees to speak exclusively with ABC news. What is your connection to Andre? He's a member of the divine province. Reporter: He says he didn't know in advance about loki boy's mansion takeover, but he now supports him fully. It's lawful to move into a house -- Absolutely. Reporter: That's not yours, and say, this is mine? Correct. Reporter: But there are many other laws Mcbride feels he and his followers are not subject to. How? He shows me a seal he says was a gift from pope Benedict himself. What can you do with this? It means I can now give orders or issue decrees that the Vatican and the Roman Curia must follow. Reporter: Are you saying that you have some sort of papal authority here in north America? In the globe. Reporter: In the globe? Correct. Reporter: So you have primary control of the Earth? Correct. Reporter: That seems like a lot of power. I understand. It is. And a lot of responsibility. Reporter: This may sound ridiculous, but the FBI is not laughing. There are an estimated 300,000 people in this country who share some version of Mcbride's belief that American laws do not apply to them. Some of these people are using tactics like adverse possession to take over vacant homes. Why did you decide on this house? Why not? It's a beautiful house. Reporter: Meanwhile, back on golden harbour drive. With media attention reaching a fever pitch, the cops mount a raid. We showed up here, opened the door, walked in, no one's here. Reporter: They haul away loki boy's stuff and change the locks. 51 days after it began, the nightmare on golden harbour drive ends with a whimper. Loki's house of cards has tumbled down. He has sneaked off quietly. And the mansion has now been sold, legally, to this guy. Zev freidus, a successful boca raton realtor. I live with my two children, my daughter Amy and my son Aaron. Reporter: And what about the squatters? So I knew this was the house that had the squatters, but that was about it. I don't think it effected the value of the property. Reporter: Zev's purchase brings a huge sigh of relief to neighbors like Becky Davis. Hey, how you doing? Nice to see you. Nice to see you. You know how infamous your house is, don't you? I know, well. The neighborhood was very, very frightened. He was just scary because we didn't know anything about him. Reporter: And remember James Mcbride, leader of divine province? He recently learned the hard way that he is, in fact, subject to the law. Just last week, among other things, he was convicted of impersonating a diplomat and he's most likely going back to prison. I think the whole neighborhood feels safer. Reporter: If anything good has come out of this ordeal, the neighbors say it's that they've grown much closer. Here they are throwing a victory celebration over the eviction of the squatter from hell, complete with a surprise guest. Okay, loki, come on out! Reporter: A loki boy

This transcript has been automatically generated and may not be 100% accurate.

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