It was when she heard the booming and smelled the smoke she realised what was happening.
"I can't get over how quickly it went up. I'm just so pleased they all got out."
Saunders said the woman and her three children were "bloody lucky".
"It just makes you think."
Family friend Rebecca Madden said it was "devastating" news for her friend who had grown up in that house.
"There's a lot of memories. It's their lifetime."
Madden appealed to the public for help and spent most of her long weekend sorting through the many donated items in her home in 39 Christian St, Dannevirke.
She said in the past 24 hours, more than 30 people had dropped off everything ranging from fresh clothes to an entire lounge suite, a double bed and a fridge.
"These kids have nothing, just what they were wearing the night of the fire.
"Lots of people have donated shoes and clothes for them."
The number of people coming over was amazing and representative of the community spirit in smaller towns, she said.
"The community just pulls together when things like this happen. Everybody is doing their little bit to try and help them. All the love and aroha that people are sending helps."
She said they were still after "kitchen things" like pots and pans, which would help the family when they are ready to settle into new accommodation.
Finding a new home was proving to be the biggest challenge and Madden also appealed to anyone who might be able to help to get in touch.
Police said the fire was not being treated as suspicious.