So you're wondering, what happens if I miss a mortgage payment? Trust me, we understand that life can throw unexpected curveballs your way, and we hope you never find yourself in this situation. But if you do, let's take a look at what might happen.

Have you ever been in a situation where, even though you thought you had everything planned out, you suddenly find yourself not having enough money to pay that important bill? Well, what happens when you can't make a mortgage payment for just one month?

Hey, no need to freak out just yet! But it's important to understand that missing a mortgage payment can have some serious consequences. So, let me break down what you can expect if that happens.

What if you’re late on your mortgage payment?

““Every home loan agreement offers borrowers a grace period for late payments. (Most mortgage payments are due the first day of the month but policies can vary)””

— Guy Cecala, chief executive and publisher of Inside Mortgage Finance

Usually, you're given a 15-day grace period to pay your bill after the due date. This means you have 14 days to make the payment without any late fees. But, you know what, sometimes the late fees can start after just seven days. That's why Cecala suggests you should really take a good look at your policy to find out the exact length of your grace period.

Late fees for your mortgage depend on your specific agreement, the type of loan you have, and the regulations in your state. Typically, though, the average late fee is around 4% to 5% of the payment you didn't make on time. Let's say your monthly mortgage is $1,000, and you have a 5% late penalty. In that case, you would be looking at a $50 fee for being late on your payment.

You know, it might not seem like much, but those late fees really add up for mortgage lenders. According to Cecala, they're actually a pretty decent source of income for them.

How a missed mortgage payment affects your credit

So here's the thing: when it comes to your mortgage payments, most lenders will let it slide if you're a couple of months late. But after 60 days, that's when they start blabbing to the credit bureaus about your tardiness. So basically, you've got about two months to catch up before it starts messing with your credit score.

After you pass the 60-day mark, your credit score, which basically shows how well you've handled your previous debts, could really take a beating.

Did you know that if you have a fantastic credit score of 780 or higher and you've never missed a payment on any of your credit accounts, it could still drop by a whopping 90 to 110 points? Crazy, right? On the other hand, if your credit score is around 680 and you already have two late payments on your credit report, missing a mortgage payment could cause a drop of about 60 to 80 points. That's a big difference!

Will my bank start foreclosure proceedings if I miss one payment?

Nope, can't say that's gonna happen.

““The foreclosure process takes a lot longer these days because of the foreclosure crisis [of 2008],”

“Mortgage lenders don’t want to foreclose on your home because it results in a loss or a cost to them.””

— Cecala

Just so you know, if you happen to be late on your mortgage payments for more than 90 days (yes, even if it's just by one day), your mortgage is considered to be in default.

Once you reach that stage, your mortgage servicer will send you a letter saying that you haven't been able to keep up with your loan payments. Normally, you'll have around 90 days to pay off the most recent bill before your mortgage lender can start the foreclosure process.

What are your options if you can’t make a payment?

So, the first thing you gotta do is get in touch with your mortgage servicer and let them know about your money troubles.

““People often feel like they don’t want to turn themselves in, but you don’t know what your options are until you talk to your lender,”

Plus, mortgage lenders tend be more accommodating if you notify them in advance that you can’t make an upcoming payment.”

— Cecala

Good news – you might be eligible for a special forbearance. It's basically a temporary break from making your mortgage payments. Your servicer would be able to guide you through the process.

According to Cecala, it's basically like getting some extra time before you have to make payments. Or, you might be able to talk to your lender and come up with a plan where you pay back the late payments on your mortgage over a certain amount of time.

If you find yourself struggling to make your mortgage payments because of a layoff or unexpected medical expenses, Cecala suggests considering the Home Affordable Modification Program (HAMP) offered by the federal government. It could help make your payments more manageable.

““Through HAMP, homeowners who are not unemployed but struggling to make their monthly mortgage payments may lower their monthly payments and make them more affordable and sustainable for the long-term,” ”

— Federal Housing Finance Agency

If you want more information, just give a call to the counseling experts at the HUD-approved housing counseling agency. Their number is 888-995-HOPE (4673). You can also find out more by visiting HUD.gov.

How can I avoid a missed payment in the future?

According to Cecala, the real estate expert, the easiest way to make sure you never forget to pay your mortgage is to set up automatic bill payment. This means your bank will automatically withdraw the money from your account every month. You can easily do this by contacting your bank either online or over the phone.

You might consider opening a separate checking account just for your mortgage payments. It could be helpful to talk to your employer about setting up automatic deposits into that account each month from a percentage of your income.

““If you run into problems making your mortgage payments, you probably want to avoid debt consolidation services. There are costs attached to them,”

“You’re generally always better off working with your loan servicer or a nonprofit that offers counseling and mortgage relief services.”

”

— Cecala