Socialite Refuses to Vacate Hamptons Mansion After Foreclosure Auction

Libbie Mugrabi is refusing to leave a $25 million Hamptons mansion that was recently lost in a court-ordered foreclosure auction. Mugrabi and her former attorney, Claude Castro, filed an action in a Suffolk County appellate court to invalidate the auction, asserting they have secured a lender willing to provide a loan that would allow her to remain in the home.

The proposed financing would leverage a Jean-Michel Basquiat painting, appraised at $40 million, which Mugrabi recently regained in a separate legal dispute, as collateral. However, it remains unclear if Castro will continue to represent Mugrabi, as she has recently parted ways with him and informed the court she wishes to handle the situation herself.

This situation is the latest development in a prolonged legal battle. Over the past two years, Mugrabi has sought to retain possession of the property despite defaulting on a $3.5 million loan secured by the mansion. She acquired the 10,687-square-foot Bridgehampton estate and its 6.8 acres as part of a divorce settlement in 2020 with billionaire art collector David Mugrabi. At the time, she reportedly received $100 million in cash and other assets, though this figure has not been independently verified.

Mugrabi told The Post that she has not determined a timeline for leaving the property, stating, "I don’t know what’s going to happen."

Mugrabi's mother, Jane Scher, expressed a desire for the matter to conclude so her daughter could "make a fresh start as the artist she truly is."

Adding to the pressure, the lender's law firm responded on September 11 to Mugrabi’s motion seeking to halt the sale and obtain more time to pay off the loan. The filing, on behalf of lender REO Assets of America, highlights a settlement Mugrabi agreed to in the spring. This settlement granted her 90 days, until August 25, to sell the home through a traditional listing or forfeit all rights to it.

The property was initially listed for $25 million, with subsequent price reductions to $19 million, but failed to attract buyers. Maria Beltrani, a partner at Schwartz Sladkus Reich Greenberg & Atlas, who reviewed the case for The Post, noted that because Mugrabi did not sell the home and consented to eviction in the settlement, "she gave up virtually all of her rights to appeal."

The auction itself, held on August 28, was marked by a chaotic scene. Mugrabi's sister, Mia Rowe, initially made the winning bid of $7.8 million but failed to provide the required 10% down payment. Following this, Henry Ikezi, a real estate investor and aspiring politician from Queens, secured the property with a $5.86 million bid made by his brother, Stanley. Mugrabi was not present at the auction.

Ikezi was given 30 to 45 days from the auction date to pay the remaining balance and initiate legal proceedings to remove Mugrabi if she did not vacate voluntarily. Ikezi has not yet responded to requests for comment regarding the completion of the purchase.