Libby Mugrabi’s Hamptons Estate Sold at Court-Ordered Auction for $5.864 Million

A public auction held at Southampton Town Hall sold Libby Mugrabi’s 7-acre Bridgehampton property for $5.864 million, ending a two-year dispute over her failure to repay a $3.5 million mortgage. Although the listing had started at $25 million and later dropped to $19 million, no buyer emerged, prompting the lender—a shell company linked to REO Assets of America—to seek a court-ordered sale. Ten interested parties, including sister Mia Rowe, who walked away after failing to provide a deposit, and mother Jane Scher, who berated the lender’s attorney, were present, but the purchaser stayed silent.

The auction proceeds will be applied to the outstanding loan, accrued interest and at least $140,000 in legal costs. Mugrabi had earlier offered a $40 million Basquiat painting as collateral and recently secured an $8 million mortgage offer, but a last-minute appeal to halt the sale was denied. Observers note the case may lead to a bankruptcy filing as she remains entangled in multiple lawsuits.