The worst fears of some homeowners in North Sydney were nearly realized when fire in a nearby abandoned house spread to their properties.

The fire broke out shortly before 2 a.m. at 113 Peppett Street, said Cape Breton Regional Police.

Two other houses were badly scorched by flames and sustained an undetermined amount of damage.

A couple in one of the houses, Lorne and Cathy Bond, told CBC News they were woken by a neighbour. They're calling him their hero.

"Lorne was in bed and I was sitting at the computer," Cathy Bond said. "I heard something like a car backfiring and within 10 to 15 minutes our rescuer was at the door, telling us to get out of the house, to get out, get out."

That rescuer was 20-year-old Matthew MacLaughlin, who lives across the street from the Bonds. He says he's glad he was able to help.

The abandoned house that caught fire had long been on the regional municipality's list of derelict and abandoned buildings.

As early as 2010, the owners of the building, Roger and Sherry Taylor, told the municipality they would clean up and secure the property following complaints.

Earlier this year, municipal staff sought an order to demolish it, but the Taylors appealed to council.

They promised they would clean up the property. They also said they were looking for a contractor, and planning to get a mortgage to renovate the house.

They were given an extension of six months to apply for a building permit and secure and paint the house.

But the Bonds say they never saw any activity at the house after that.

Meantime, the building was a source of constant unease, says Lorne Bond.

"I called 30 times on that place, anyway," he said. "We're not talking every day; we're talking about every three weeks. I would call because there was someone had broke in the house and I knew they were there and the police would catch them and let them go."

There have been other fires at the house, too.

"There was one there about three weeks ago," said Cathy. "We had company and all of a sudden, smoke was everywhere."

The back of the Bonds' home was badly damaged by Tuesday's fire. The eaves were burned off the house and some of the windows have had to be boarded up.

They had no insurance, but Cathy says all their family and friends have already offered to help with repairs.

The house across the street from the fire sustained damaged to its vinyl siding.

One firefighter suffered a burn on his hand when he removed a glove too close to the heat.

The fire is under investigation by police and the fire marshall. A cause hasn't been determined.