Family in 'Hell' Because of Former Live-In Nanny

Ralph and Marcella Bracamonte say they fear they could lose everything because of Diane Stretton.
7:27 | 07/12/14

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Transcript for Family in 'Hell' Because of Former Live-In Nanny
Tonight, a "20/20" exclusive. That so-called nightmare nanny breaking her silence for the first time right here. And as we come on the air, nick watt and our "20/20" team just back from California. And there are two sides to the story with two big questions. Both coming down to real estate and the roof over your head. Why does the nanny have a legal right to stay in the house after being fired? Who's really looking after your kids? Here's nick watt. Reporter: Marcella and Ralph Bracamonte worked hard for their American dream, a home, three kids and happiness. High five. Reporter: Now, they say, they're living an American nightmare. She's trying to get us on a lock out. It's a setup. We're going through pure hell. Reporter: And they blame the nanny. I fear we could lose everything. I fear that. Our livelihoods. I fear that she knows this game well enough that every word that she says is going to be meant to impact us as hard as possible. Reporter: They say they fired the live-in nanny, but the nanny won't leave. She said, "If you want me to leave then you're going to need to evict me," and slammed the door in my face. Reporter: The woman they hired, the woman they once trusted with their children, still has a key to their home, still has a room in their house. This attorney is now representing the Bracamontes. She can come in anytime and that's fine. That's correct. Reporter: The Bracamontes say they sleep with one ear open. I hear something move and I get up and I walk out. I don't care if I come face to face with her. She should not be roaming in my home. Reporter: Joey, their eldest, is 11. You feel scared in your bed at night? Yeah. I wake up in the middle of the night and I just sit there listening to the sounds. Reporter: It all began when Marcella, who wanted to start her own business, posted a want ad on craigslist, offering room and board in exchange for house cleaning and caring for my kids. Help out with the kids when needed, to pick up little things, and maybe prep up a little bit of dinner if she was running a little bit late. Reporter: 64-year-old Diane stretton answered the ad. Her references checked out. She seemed nice. That's her room. This is her bathroom. Reporter: She moved in March 4th. We wanted the person that we first met. She was awesome. She was part of our family. The person that we first met. It wasn't even like a job. Reporter: Ralph Sr. Made Diane dinner on mother's day. She attended family gatherings, tutored their 4-year-old. But big brother joey says all was not as it seemed. Reporter: When your parents weren't around, did she act different? Yeah. When my parents left us, she would just tell us to go in our room. And I was telling my mom, but she wouldn't believe me. Reporter: A couple of weeks in, his parents also began having doubts. She was absolutely part of our family. Then she changed. She refused to perform. Reporter: Marcella says staying in her room, demanding meals, refusing to work. Marcella claims she gave the nanny verbal warnings, finally penning a "Last chance letter," laying down some new ground rules. "Help with all duties that I do. Cleaning, cooking, trips with kids, and anything else mother asks. If you don't see anything for you to do, find something. Either Friday or Saturday, I want you to steam clean all floors." Diane refused to sign. So that's when you realized that you might have a bit of a problem here? Oh, yeah. And I already saw it from her face that she knew exactly what she was doing. Reporter: Marcella claims she fired Diane June 6th. Diane refused to get out, and that's when the fear set in. Call me paranoid. I got to keep my family safe. Reporter: Every night, Marcella puts a lock on her own refrigerator. I'm scared she's going to put my house on fire. She's going to poison us. She's going to steal things. She's going to come in my room and do a whole thing on me, I don't know. I don't know who she is. And so I've been scared. Reporter: Neighbors on this friendly street rallied around the family. I googled her, and I'll never forget that face. Reporter: What does she want? She wants to feel superior of somebody. It's an ego thing. Reporter: She wants money? She wants to scare you? What do you think it is? Scaring us, money. Reporter: Marcella took her nanny to court to throw her out, only to find that tenants have rights. And the nanny is a tenant. Barbara Corcoran of shark tank fame has some words of wisdom. When you invite someone to move into your home, you should be well aware that they don't have to move out. Reporter: Marcella contacted the media. And Diane, caught in the spotlight, disappeared, leaving her belongings behind, but taking a key with her. She can come in the house anytime. She could walk in tonight. Ralph says he's scared when he leaves for work. It's put a stress on my family. It's put a stress on me. I try not to work as much because I'm afraid something could happen when I'm gone. Reporter: So that's her room, and -- That's my son's room, right here. Reporter: By law, the Bracamontes can't even enter the nanny's room in their own home, a home they own. Ralphy, do you understand? Yeah. What did I just tell you to do? Not open the door. Why? Because we could get in serious trouble. The way she's trying to come off now, it's really sad to me because -- I really don't think we need to defend ourselves because -- Well, let me talk. Her past is herself. Let me talk. Reporter: It's put a stress on the Bracamontes' marriage. This is real and people torment people like this for fun. That may be your thing. But I got three kids I got to worry about, too. And I don't want to keep on putting them through this. Reporter: There was a media scrum outside 24/7, but "20/20" was inside, on the couch, with the family as the drama unfolded. She is saying because of her disability and the heat, she needs to do it in the morning. Reporter: She'll leave for good, she says, but only if the Bracamontes meet her demands, like Marcella and the three kids getting out of their own home every day between 8:00 A.M. And 5:00 P.M. For a month. If not, possible legal action. She says she could be out by July 4th. No. No. No. We can't do that because we'll be out of town. No, she needs to be out. And if no one is here, she could do a forced lockout. Reporter: She didn't lock the Bracamontes out, but she also didn't move her stuff out, or surrender her key. She stays away. And we found her in her car. This is my car. It's where I've been sleeping. It's where I slept before. Reporter: You see, before she moved in with the Bracamontes, Diane stretton was homeless. She'd lived in her car eight years.

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

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