Hundreds of homeowners in Jackson are waging war on thousands of caterpillars that have ruined homes and defoliated hundreds of trees in the area.

Some homeowners are angry the town passed on the opportunity to alleviate the problem. One couple said the moth invasion could have been avoided if the mayor paid the state to spray affected areas.

"This is our third week of not being able to come outside. My children can't play outside. We can't do anything outside. My pet has to be at my mother?s house. Because it cannot come outside,? said resident Arlene Greenway.

One family says they spent $535 for an exterminator and that they want the town to reimburse them for the cost.

According to experts, this gypsy moth caterpillar problem will get worse before it gets better. They say, the infestation is in its second year of a seven-year cycle.

The state Department of Agriculture estimates about 300,000 gypsy moths have infested New Jersey in 2007.