Sometimes, no matter how carefully you plan, you may find yourself lacking the funds you need to pay that critical monthly bill. So, what happens if you skip a month of mortgage payments?

Don't worry - there's no need to panic just yet. But there are consequences to missing a mortgage payment, so you'll want to know what happens.

What if your mortgage payment is late?

Every home loan agreement provides a grace period for borrowers to make late payments. (Guy Cecala, CEO and publisher of Inside Mortgage Finance, says, "Most mortgage payments are due on the first day of the month, but policies may vary.)

Typically, there is a 15-day grace period, in which case you have 14 days after the payment is due to pay your bill without incurring late fees. However, "I've seen some late fees start after seven days," says Cecala, who recommends double-checking your policy to see how long your grace period is.

Late fees are based on your mortgage agreement, loan type and state regulations, but generally average 4 to 5 percent of late payments. So, for a $1,000 per month mortgage with a 5% late penalty, the fee would be $50.

This may seem like a drop in the bucket, but "late fees are a good source of revenue for mortgage lenders," Cecala notes.

Mortgage lenders typically report late payments to the credit bureaus after 60 days past due, which means you usually have two months to make up the late payment.

But after 60 days, your credit score - a reflection of how you've managed past debts - can take a big hit.

According to FICO, a credit analytics company, a person with an excellent credit score - 780 or higher - could see his or her credit score drop by 90 to 110 points if that person never misses a payment on any credit account. By comparison, someone with a credit score of 680 who has two late payments on their credit report could see a drop of 60 to 80 points for a delinquent mortgage payment.

If I miss a payment, will my bank initiate foreclosure proceedings?

The short answer is no.

"Because of the [2008] foreclosure crisis, the foreclosure process is now taking longer," Cecala says." Mortgage lenders don't want to foreclose on your home because it will result in a loss or cost to them."

That said, if your mortgage is more than 90 days past due - even if it's just one day - your mortgage is technically in default.

At that point, you will receive a letter from your mortgage servicer informing you that you are in default; you then usually have 90 days to pay your most recent bill before the mortgage lender can begin the foreclosure process.

What are your options if you are unable to make a payment?

Your first step is to contact your mortgage servicer and explain your financial situation.

People often feel they don't want to turn themselves in, but you don't know what your options are until you talk to your lender," Cecala says. In addition, mortgage lenders tend to be more forgiving if you notify them in advance that you won't be able to make upcoming payments.

You may qualify for a special waiver, in which your servicer will let you temporarily stop making mortgage payments.

"It's basically an extended grace period," Cecala says. Alternatively, you can work out a repayment plan with your lender in which you agree to pay off the overdue amount of your mortgage within a specified period of time.

If you are unable to make your mortgage payments (for example, due to layoffs or emergency medical expenses), Cecala also recommends looking at the federal government's Home Affordable Modification Program (HAMP).

"Through HAMP, homeowners who are not unemployed but are struggling to make their monthly mortgage payments can lower their monthly payments, making them more affordable and sustainable over time," the Federal Housing Finance Agency's website says. You must meet certain requirements to qualify.

To learn more, call a counseling specialist at a HUD-approved housing counseling agency at 888-995-HOPE (4673) or visit HUD.gov.

How can I avoid missing future payments?

The best way to make sure you don't miss a mortgage payment is to set up automatic bill payments so that funds are automatically withdrawn from your bank account each month, Cecala says. (You can easily do this through your bank online or over the phone).

You can even set up a special checking account for your mortgage payments and make arrangements with your employer to have a percentage of your income automatically deposited into that account each month.

Cecala also offers a tip: "If you're having trouble making your mortgage payments, you may want to avoid a debt consolidation service. There is a cost to these services," he says." In general, you're better off working with your loan servicer or a nonprofit that offers counseling and mortgage relief services."