A young Wendouree couple and their children are scrambling to find accommodation after part of their Montgomery Street home was badly burnt.
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CFA members said it was likely the weatherboard home would need to be demolished and rebuilt.
"The front bedroom has been heavily damaged - and the rest of the building has been badly smoke-damaged," Wendouree CFA captain Don Garlick said.
"The fire had possibly started in or near the bedroom - but we don't know if its begun inside the home, or outside where there was a bin near the wall.
"The house is a total loss."
"Initially we were also concerned about a possible missing person.
"The neighbours who rang emergency services saw the the wife's car out the front, but it turns out she was at work."
The owner - who did not want to be named - said his wife had taken an early train to Melbourne.
He said at the scene he was also having trouble reaching one of his children at school. A pet cat was also missing.
Firefighters handed him a laptop, iPad and headphones saved from the blaze. The rest of the scene was taped off, with the fire being treated as a crime scene until a CFA investigator and detectives could prove otherwise.
Police were seen talking to neighbours and doorknocking homes around the Montgomery Street Reserve.
Powercor was also called in to disconnect electricity.
The drama unfolded at 10.33am with reports of a flames coming from the home.
All up four trucks attended from Ballarat City (FRV station 67), Lucas (station 68) and Wendouree CFA, plus two ambulance vehicles and multiple police in marked and unmarked cars.
The owner said the home was insured.
He said caring neighbours had rung him at work when the fire was reported.
Witnesses said neighbours had also tried to battle the blaze with a garden hose before firefighters arrived.
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