Ms McCracken's neighbour Ross Millar said he was surprised to walk out of his bathroom to see police officers outside his home.
He said his neighbour had been very brave and was left shocked but uninjured.
"It was not very nice, she was calling out and crying. She got up off the ground and said 'come back here'. She was yelling out 'come back, come back'."
Mr Millar said the thieves had been rifling through her handbag as they ran off and dropped the money which was returned to his elderly neighbour.
However, a smaller purse containing her house keys and credit cards had not been returned.
Ms McCracken was staying with her son in Hamilton for a few days while she recovered.
Residents in the housing estate were shocked to learn of the attack in the usually safe town but said it was often used as a short cut by people to get between Anderson St and Lear St.
Mr Millar said his agile neighbour was "very caring and walked into town every day".
"She was always perfectly dressed and groomed and her jewellery was always perfect. She's just a lovely, lovely lady."
Another neighbour, Eileen Gall, said Ms McCracken had lived in her two-bedroom flat for more than 20 years.
She said she had a mobility scooter but didn't like to use it because it hurt her neck whenever she went over bumps on the footpath.
Morrinsville Police Senior Sergeant Mark Toomey said it was a cowardly attack and he was pleased with the community's quick reaction which helped police catch the suspects.
He said local residents were appalled. "There's generally a bit of disbelief that this happened and that's why I think they were so willing to jump on board and assist."
Two boys are due to appear in the Morrinsville Youth Court on Friday.