"He was scared at first and he didn't know if he should come out, and I was like, 'It's OK, come on, come on. I got you.' So he came out and he just walked down," Marcos said.
When Ugarte saw Marcos climbing into the burning home, he was in shock.
"There was just so much adrenaline going on," Ugarte told ABC News. "This doesn't surprise me that he just takes initiative and gets the job done. He is in my eyes a true hero."
No one was hurt in the fire, although Cody was sent to the hospital for smoke inhalation and later released. Authorities are still investigating what started the fire.
"You just don't see a 14-year-old kid have the composure that Marcos did in order to attempt that rescue," said Maunder.
But showing kindness to others is nothing new for Marcos. He assists with the care of his two brothers, who both suffer from kidney failure.
"He [Marcos] has always gone through life with this difficult sense of why did I get spared? Why did I not get this disease?" Ugarte said. "Everyone has been calling him a hero and I've been doing that since he was a baby."
Ugarte is proud of his son and that he was the hero for their young neighbor.
"I think it's awesome," Ugarte said. "I hope that he would perhaps through this recognize that God has a purpose for him."