Hamptons Mansion Auction Set: Libbie Mugrabi estate faces $11m court sale; experts warn on equity hit

Libbie received the mansion in divorce settlement with David Mugrabi (Getty images) A luxury estate in Bridgehampton owned by socialite Libbie Mugrabi is set to go under the hammer after failing to sell through the regular real estate market. The court-ordered auction is scheduled for August 28 outside Southampton Town Hall, with bidding set to begin at $11 million.The auction stems from a legal dispute over a $3.5 million loan that Mugrabi took against the property and did not repay, according to court records. The sale is expected to recover the outstanding loan amount along with related penalties.The property was first listed for $25 million earlier this year. After attracting no buyer, the asking price was cut twice before reaching $19 million. Despite the reductions, the estate remained unsold, leading to the court-approved public auction.The unsold mansionThe Bridgehampton estate spans around seven acres and includes a 10,687-square-foot mansion. Under the auction terms, interested buyers must purchase the property as is, pay in cash and place a minimum $2 million deposit to participate in the bidding.The mansion became part of Mugrabi's assets after her divorce from billiona...