Hamptons socialite Libbie Mugrabi, 46, lost her Water Mill mansion to a court-ordered auction after falling behind on mortgage payments, in a chaotic scene outside Southampton Town Hall that saw her mother and the family dog escorted away by police. The seven-figure sale marks a dramatic fall for one of the most valuable assets Mugrabi received in her acrimonious 2020 divorce from art collector David Mugrabi, and highlights how quickly a windfall settlement can unravel under debt.

The 10,686 sq ft, six-bedroom property, which boasts sports courts, a pool and a spa, was initially listed for $25 million in May but her attorney later admitted it was worth closer to $10-12 million; it ultimately sold for around $5.9 million to an unnamed buyer. Mugrabi had been sued over a roughly $3.5 million mortgage and still owes more than $9 million once penalties and legal fees are included, despite reportedly receiving about $100 million in her divorce settlement. The auction itself descended into farce when her sister's higher $7.8 million bid collapsed for lack of a certified cheque, and her mother, Jane Scher, was removed by police after confronting the lender's lawyers while holding her dog, Botox.