Libbie Mugrabi, a 46-year-old socialite, lost her Hamptons mansion at a court-ordered auction on Friday morning, reportedly selling for approximately $5.9 million. The public auction, held on the steps of Southampton Town Hall, concluded after a tumultuous bidding process.
The property, a 10,686-square-foot estate in Water Mill, was one of the assets Mugrabi received in her 2020 divorce from art collector David Mugrabi. The home, which features six bedrooms, sports courts, a pool, and a spa, was initially listed for $25 million in May. The outstanding mortgage on the property was valued at around $3.5 million.
Mugrabi was sued by her lender for failing to meet mortgage payments. Despite the sale, she still owes an estimated $9 million to cover the mortgage, penalties, and approximately $140,000 in legal fees.
The auction saw a notable incident when Mugrabi's mother, Jane Scher, reportedly became involved in a dispute with the lender's attorneys. According to reports, Scher was yelling at the attorneys and was subsequently escorted away by police for being disruptive. She was reportedly with her dog, named Botox, at the time.
Mugrabi's sister, Mia Rowe, initially placed the winning bid at $7.8 million. However, Rowe reportedly left the auction to retrieve a deposit, stating she was going to a Chase Bank, and did not return. Other bidders noted they were required to have certified checks present for the auction.
Mugrabi's attorney had previously admitted in court that the property's actual value was estimated to be between $10 million and $12 million, significantly less than the initial $25 million asking price. Mugrabi, who received approximately $100 million from her divorce settlement in 2020, had expressed confidence earlier in the week that she would not lose the mansion, stating she was in the process of refinancing. She attributed potential sale difficulties to the "media circus" surrounding the situation.
Mugrabi and her ex-husband were married for 14 years and share two children. The divorce proceedings began in 2018 after Mugrabi accused her spouse of infidelity. Her former husband's family is known for possessing one of the world's largest collections of Andy Warhol paintings.
