Libbie Mugrabi Declares She Won’t Sell Her Mansion, But Auction Looms

Libbie Mugrabi, the former wife of billionaire art dealer David Mugrabi, faces a court‑ordered auction of her Southampton mansion on August 28. A judge directed the property to be sold from the steps of Southampton Town Hall to recover a $3.5 million loan she had taken against it.

The sale is scheduled for 11 a.m., and the case is set to be heard the day before.

The socialite has denied that her home will go to auction. In an interview she said, “There is not a court‑ordered sale. [That’s] fake news.

We agreed to settle and I need a little more time as I fired my broker.” She added, “I’m in the process of refinancing… I’m in the middle of doing a loan… I can’t sell it,” and claimed her “brokers are no good.” Mugrabi explained that she is working on securing another loan to keep the property in her name.

Despite her statements, the judge’s order remains in effect. Her attorneys plan to appear in court on August 27 to request additional time to satisfy the debt, and the auction will proceed if no extension is granted.

## Background & Context

Mugrabi purchased a $25 million Southampton home in May and reduced the asking price to $19 million shortly afterward. The listing failed to attract buyers, and a month later a court ordered the house to go to auction with bids starting at $11 million.

The mansion had been part of Mugrabi’s divorce settlement with David Mugrabi in 2020; she retained ownership as part of the final agreement.

The property has also become the center of legal disputes beyond the mortgage. In May, artist and critic Anthony Haden‑Guest sued Mugrabi, alleging that she had displayed nearly 100 of his cartoons in the Southampton home for 15 years without returning them.

Mugrabi has dismissed the suit, calling it “bogus.” Additionally, she is embroiled in a separate lawsuit with a financing firm that used a 1982 Basquiat painting as collateral for a loan she received.

These legal challenges compound the financial pressure on the mansion. The $3.5 million debt is secured against the property, and if it cannot be resolved before auction, the house will leave Mugrabi’s possession.

## What People Are Saying

Mugrabi’s public comments have been punctuated by colorful language. While speaking to an interviewer she remarked, “Tell [] what are you doing,” directed at her hairdresser. She later added, “I really get along with Black people.

I love Black people.” After her hair appointment, she returned the call and insisted she was “a really nice person,” adding that she was “not afraid.” She said, “I did a bad business deal and that’s it. This media circus has destroyed the sale of my house… I’m hoping for justice in the court.”

Her remarks illustrate her frustration with what she perceives as sensational coverage. The statement about “fake news” underscores her belief that the court order is a misunderstanding. She has openly questioned the competence of her brokerage team, claiming they were not suitable for handling her refinancing.

Despite these denials, the legal documents remain unchanged. The judge’s order to auction is based on the outstanding loan and the court’s determination that the debt must be recovered. Mugrabi’s claim that she is “working on getting another loan” has yet to be substantiated in any public filing.

## What Happens Next

The next critical step is Mugrabi’s appearance in court on August 27, where her attorneys will argue for additional time to pay off the debt. If the court grants an extension, the auction could be postponed or cancelled. If no extension is granted, the property will be sold at the scheduled auction on August 28.

The auction itself will take place at 11 a.m. from the steps of Southampton Town Hall, with bids starting at $11 million. The sale proceeds will first satisfy the $3.5 million loan. Any remaining balance would be transferred to Mugrabi if she is able to secure refinancing in time.

The outcome of the pending lawsuits with Haden‑Guest and the financing firm could also influence Mugrabi’s financial standing. Should she win those cases, additional funds might become available for paying down her mortgage, potentially averting the auction.

Until a court decision is made, however, the home remains locked in a precarious legal situation.

The situation highlights how a single property can become entangled in overlapping financial and legal disputes, creating a cascade of challenges for the owner. Mugrabi’s next days will determine whether she can keep her Southampton mansion or whether it will ultimately go to auction.