A third man is feared dead in a separate fire near Narooma.

Police said the two men died at their property ten kilometres from Cobargo, just west of Bermagui. They were a 63-year-old man and his 29-year-old son.

A woman told the police that she had left the property on Monday evening but her husband and son stayed to defend the home and farm equipment. She returned on Tuesday morning and discovered their bodies.

RFS officers said there was also grave concern for the safety of an elderly man. "We have got the unaccounted fellow up at Belowra up in the back-country," NSW Rural Fire Service commissioner Shane Fitzsimmons said.

"Our advice is this man was working to defend his property and there is some early report that he happens to be a volunteer member as well."

The Badja Forest Road fire hit Cobargo on Tuesday morning and the township has been aflame for much of Tuesday. The town was evacuated earlier in the morning.

There has been an extensive loss of buildings confirmed in Cobargo and locals have said the fire has impacted several shops on the main street.

"It's almost pitch black and the sky is red," the landlord of the Cobargo Hotel Motel, David Allen, said at four o'clock in the afternoon.

"We were lucky enough to save our pub. A lot of people lost their homes. It's just a terrible, terrible situation."

Gabrielle Hudson was forced to evacuate her parents' property between Cobargo and Quaama at 2am on Tuesday. She fled with her parents, seven siblings and husband to Bega.

"You could literally see the glow coming over the hill behind my parents house," she said.

"It was so creepy and you could hear the fire the low roar.

"By the time we went down the road you could see the flames coming up the hill and we got out just in time."

Her family had planned to leave at 8am on Tuesday on advice from the NSW RFS but at 1am they all received text messages that said evacuated immediately.

"We got to pack all the valuables and pictures," she said.

Ms Hudson said her parents house was still standing but they had concerns for their cat who they had been unable to find when they evacuated.

Pictures on social media have showed stores Cobargo on fire.

Atticus Thomas posted photos on Twitter he said showed the main street alight. He was sent the photos from friends. He had left nearby Bermagui on Monday.

One posting said: "My son's historic house/shop going up in Cobargo. He is safe because he evacuated - there are people injured in Cobargo who did not."

Another said: "If this is your house please come help me, I am here now and we can save this."

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Almost 100 blazes continued to burn across NSW, with dozens uncontained and eight on Tuesday at emergency level.

Extreme fire danger is forecast for the Southern Ranges, Illawarra and ACT on New Year's Eve while surrounding regions - including Sydney, the Hunter and the Far South Coast - are set for severe fire danger.

Just after midday, the RFS was advising:

There was also a frantic search for information through social media.

One posting said: "I'm sorry to ask this right now but we just bought a property about 5 minutes out of Cobargo on the Cobargo Bermagui Rd and we are not there at the moment.

"Does anyone know if properties on the left above Rowens place have been effected? Again I apologise - we just can't get any information."

Another read: "Can anyone in Cobargo tell me for sure if the Co-op is still standing? As soon as I can get back to town I will be there to be of service, building or no buildings."

And yet another said: "My friend is on a farm north of Cobargo and evacuated early this morning, neighbours were fighting grass fire at her place about an hour ago, running out of fuel for generator pumping water from dam."