California’s Attorney General, Jerry Brown, yesterday announced the arrest of two real estate fraudsters — Mary Alice Yraceburu and Marianne Curtis — who, according to the Calif. AG’s office “coldly and heartlessly” conned over 160 distressed homeowners out of thousands of dollars for non-existent loan modification services.

In total, the California Attorney General’s Office filed 49 felony charges in Orange County Superior Court against the 45-year-old Yraceburu, of Riverdale, Calif., and the 67-year-old Curtis, of Costa Mesa, Calif. Yraceburu was arrested yesterday in Fresno County, while Curtis was arrested in Orange County on the following charges:

• 24-counts of grand theft
• 25-counts of violations of California’s foreclosure consultant statutes
• One special allegation that the total value of theft was over $65,000
• One special allegation that the total value of theft was over $100,000

Both women are convicted felons who have served time in state and federal prisons.

The two women operated a company called Foreclosure Freedom, which sent hundreds of fliers to Californians promising help in stopping the foreclosure of their homes. The fliers read: “FINAL NOTICE - Respond only to this notice immediately.” This is similar to the “First Gov” scam, which the Attorney General’s Office stopped late last year.

When homeowners called the number on Foreclosure Freedom’s flyer, they were told their mortgages could be renegotiated to a lower monthly payment. Callers who signed up for the service, however, were required to pay thousands of dollars in up-front fees and were instructed not to contact their lenders. Instead, they were assured the company had “private lenders and specialists exclusive to their company who are very experienced in the options and methods used to renegotiate home loans,” yet neither of the women who operated the company had real estate licenses, legal training, or any experience in the home mortgage business.

California investigators found no evidence of any successful loan modifications and most of the victims were either forced into bankruptcy or eventually lost their homes to foreclosure.

If convicted of all charges, Mary Yraceburu and Marianne Curtis face 21-years in prison.

Ralph R. Roberts, GRI, CRS Award-Winning REALTOR® and Author Loan Modification For Dummies (avail. Summer 2009)