Firefighters at the home after the incident.
Allegations against two teenagers facing attempted murder charges could be resolved in a few weeks.
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The boys, who can't be named, were allegedly involved in the stabbing of a girl at her Swan Street home on November 11 last year before the property was torched.
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Albury court on Tuesday heard the case could be settled within three weeks.
Lawyer Camille McKay said the parties were "very close" to reaching agreement on the facts.
The pair will return to court on December 15.