Learn English – a word to express a feeling that is less than excited

What is your problem with condolence? It does not only apply to grief of death, but of any severe suffering. Its origins are similar to sympathy and compassion, all meaning essentially to suffer together (or as the commenter said "I feel your pain.")

However, all three of these words seem to work: I offer my sympathies, or condolences. I'd also say that to say "I'm sorry" only means "I apologize" in some circumstances. "I'm sorry for the terrible thing happening to you" does not in any way imply that you feel responsible, or are accepting any blame.

The "extended" responses are hedges - a mitigating device used to lessen the impact of an utterance.

Hedges are so common in the context of a (disappointingly) negative reply that failure to use one isn't just "neutral" - it can actually seem hostile.