My neighbors siding of their townhouse is missing so It created the water to come through the walls of one of my rooms. They are streaks of water and a bubble like on the wall. Its in my daughter's room so I'm afraid it will be come moldy.

Yes it can. If applicable, find out what the homeowner's association rules are, and talk to the neighbor about what they plan to do about it, unless it's covered under the monthly fees (then why isn't the association or management co fixing it? Is the neighbor in arrears? Is the whole place in financial trouble?). If you are totally without management of shared walls, etc, then you may have to sue the neighbor, or the mgmt co if you pay a fee.

Take pictures inside and out. I might cut out a square of the wall about 16" stud to stud to see what is happening inside too, and on the back of the drywall, which could have more mold than what you see. Save it and document what you are doing. A mold abatement co or building contractor will look at it for free. Save what they say in writing.