WEST MILFORD-A fast moving blaze destroyed two homes here Sunday, Jan. 16, and left the tenants of one dwelling homeless, officials said. The alarm was turned in at 9:59 p.m., according to Police Chief James R. Dykstra, who said the fire apparently broke out in a vacation home belonging to Glenn Juhlin at 10 Boat Basin Road. He said investigation indicated the fire was caused by a defective heating unit. An adjacent home at , owned by Colony Management, according to the tax assessor's office, was occupied by Mark and Peggy Tsouristakis and their son Alex. The rapidly spreading flames forced them to flee before they could call in an alarm, the chief said. As they fled into the freezing night, they could hear the fire callup alarm sounding and thereby knew help was enroute. Company No. 3 Fire Chief Joe Burden was the officer in charge of fighting the blaze which was battled for more than two hours by firefighters from Companies One, Three, Four, Five and Six. The Juhlin residence was being renovated, according to fire department information. The tax assessor's office said the dwelling was assessed at $125,000, while the 35 Olcott Road property belonging to Colony Management was assessed at $85,000, officials said.