Exclusive | Socialite Libbie Mugrabi loses Hamptons mansion at wild court-ordered auction -- after paying nothing on its $3.5M mortgage

August 28, 2026 - 17:48

The auction, which drew a crowd of curious onlookers and determined bidders, was described by those present as wild and unpredictable. The property was ultimately sold to satisfy the outstanding debt, a debt that had gone entirely unpaid. The estate had been a key asset in the couple's massive financial settlement, which was valued at around $100 million when the divorce was finalized.

Sources close to the proceedings said the sale price was well below what the property might have fetched in a traditional market listing. The auction was forced after the lender moved to foreclose on the mortgage, which had been sitting dormant. Mugrabi, known for her high-profile presence in the New York social scene, had reportedly walked away from the financial obligation entirely, leaving the bank with no choice but to force the sale.

The new owner's identity has not been officially confirmed, but real estate insiders suggest the buyer is a local developer with an eye for prime Hamptons land. The estate, which includes a main residence, guest house, and manicured grounds, is expected to be either renovated or potentially subdivided. For Mugrabi, the loss of the property marks another chapter in a legal saga that has dragged on for years, with both sides trading accusations over hidden assets and unpaid support. The auction's outcome effectively closes the book on her ownership of the estate, though it remains unclear if further legal battles over the broader settlement are still pending.