Mortgage underwriters normally want documentation attached to the letter of explanation. For example, a letter of explanation may be required if a mortgage loan borrower had a substantial low income one year from the previous year and had a late payment history for three months.
Wage garnishment by itself will not damage your credit...and the fact that your wages are being garnishment will not be noted on your credit report....However, the judgment that led to the garnishment (if they report it) will affect your credit rating...and the original default of your credit card will also still damage your credit rating.
New York State law limits the amount that a creditor can garnish (take) from your wages for repayment of debts. New York State wage garnishment laws (commonly called income executions in New York) are only slightly more restrictive than federal law.For the most part, creditors with judgments can only take up to 10% of your gross wages. For a few types of debts, creditors can take more.Read on to learn about income execution law in New York State.n New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times minimum wage, it cannot be garnished at all.