Negative equity is a problem for a lot of our clients at the moment. If a homeowner in negative equity cannot present a realistic, sustainable proposal at court, which shows how he or she can meet monthly payments and pay something towards the arrears, the court is likely to serve a possession order.  In my experience, the lender's solicitor may come to court with a valuation of the defendant's property.  These valuations can often be on the low side and will present the defendant as being in negative equity.  Obtaining a realistic valuation from a reputable agent can therefore be an important tactic in your defence, allowing you to challenge the lender's valuation. It would be interesting to know how negative equity is affecting your work and your clients and to hear any suggestions or tips you have in this area.