FIRST AIRED: March 8, 2017

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>> 18-year-old Oliver Funes-Machado is charged with first-degree murder. Police say he decapitated his 35-year-old mother in their North Carolina home, then walked outside holding her severed head in one hand and a butcher knife in the other. As he waited for authorities to respond to the 911 call he made, a neighbor says a school bus carrying young children passed by.
>> I had one child that gets off here in the afternoons and she was mortified. She said that the other kids on the bus were talking about that there was a lady's head in the yard.>> Police say the teen's two younger sisters were home at the time of the attack but were unharmed, a third sibling was at school.
Neighbors say the family recently moved in and have lived there less than a year.>> It's just horrendous. It's unbelievable that something like this would happen.>> ICE officials say the teen is in the country illegally from Honduras. He's being held without bond until his next court hearing in mid-March.