I'm currently blessed with good neighbors to my immediate north and south, but there are several clueless dog owners in my neighborhood who walk their dogs off-leash, in violation of the law.
As
Island_Biker noted, it's not the dog's fault.
Let your neighbors know that you are serious, and that their dog is a hazard to your health, both mental and physical.
Give them a chance to change their behaviour, then call the authorities if they don't. Stand firm. Remind them that they had a chance to fly straight and that they blew it.
Good luck.
Cheers.
Tammi