Socialite Libbie Mugrabi has stated she will not lose her Hamptons mansion to a court-ordered auction, asserting that the sale is "fake news" and that she is actively seeking a new loan to resolve her financial obligations. A judge had ordered the property to be sold at auction on August 28 to recoup a $3.5 million loan. Mugrabi, however, claims she is in the process of refinancing and has parted ways with her broker.
Mugrabi, who finalized her divorce from billionaire art dealer David Mugrabi in 2020, kept the Southampton home. She initially listed the property in May for $25 million, later reducing the price to $19 million, but it failed to sell. Subsequently, a court ordered the home to be auctioned with bids starting at $11 million.
Mugrabi attributes the difficulties in selling her home to media attention, stating, "This media circus has destroyed the sale of my house." She expressed hope for justice in court and maintained that she is a "business woman" who made a bad business deal. Despite her claims, the home remained scheduled for auction on August 28, with her lawyers intending to appear in court the day prior to request additional time to settle the debt.
In addition to the foreclosure proceedings, Mugrabi is involved in other legal matters. Artist Anthony Haden-Guest sued her in May, alleging she has displayed nearly 100 of his cartoons at her home for 15 years without his permission, a claim Mugrabi has called "bogus." She is also engaged in a legal dispute with a firm that loaned her money, using a Basquiat painting from 1982 as collateral.