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Murabaha Security
In case of default, when the financial institution sells the asset to recover the amount due to it and there is no balance to return to the customer (as a result of a decrease in the value of the house) wouldn’t the customer’s payment prior to default h
Typically, a Murabaha is used for short-term financings while for long-term financings Ijarah, Musharakah, and other structures are used. You may be getting confused with ownership. After the Murabaha is executed, the debt is owed but the customer is now the owner of the property. So the bank would not be able to seize and sell the house all things equal.

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