97 escort started missing
 

Good evening, I just drove through a large water puddle and my 97 escort 2.0 litre started to miss and than died. I thought maybe wet distributor but it looked dry. Can the timing belt jump a tooth if water contacts it?
Checked belt, it was out by two teeth. I set back to marks and tried spinning it over. No compression on 1, removed head and found exhaust seat had let go and was broke up and smashed piston. 391000 kms, body is in real good shape. Not sure if I should bother fixing.