Yes, if the owner does not handover the criminal then authorities have every right to raid the house, and if the owner fires back with weapons then they will be bombed and there will be collateral damage.
Be it waco, tx or recently Lal masjid Rawalpindi in Musharraf time where terrorist were not coming out even after warning the places were attacked and bombed. Co lateral damage happened as inevitable. Civilized world have to be saved with power and not left hijacked by terrorists. You seems to be inclined so for fear of collateral damage.