The call came in at 8:46 p.m. Thursday night.
Palmer Fire Chief Alan Roy told CBS 3 that when crews first arrived there was heavy fire showing from the second floor of the house at 27 Fox St.
"It is never good whatever time of year this happens," said neighbor Kevin Aldrich. "But especially this [holiday] time of year, it is hard."
Aldrich has lived next door to the burned house for the past 25 years.
As of Friday, the house is no more. Palmer officials consider the building to be a total loss.
"I am sure they had Christmas presents," said Aldrich. "I know they had televisions in there that are not going to work anymore. There is like 2 to 3 inches of water in a couple of the bedrooms that we went through, getting stuff out for them this morning."
Officials announced the cause of the fire was a working oil lamp, which is similar to a tiki torch. They said that lamp tipped over on the second floor and lit combustible material. Roy said the residents could not contain the blaze.
"The police department and the state fire marshal's office did their interviews Thursday night," said Roy. "That is the cause that we were given today. They have completed their investigation."
Aldrich said it has turned into a rough holiday season for the displaced family.
"They are shocked," Aldrich stated. "They do not know what they are going to do. I guess if I was in the same position, I do not know what I would do either. There is really no place for them to go."
The American Red Cross is assisting the family.
Roy said the house was one of the older buildings in town, as it was built in 1840.
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