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.
If a creditor is garnishing your wages, you may be able to stop the garnishment and even get some of your garnished wages back by filing bankruptcy.However, certain exceptions do apply. Read on to learn more about how bankruptcy can help you stop wage garnishments.alk to a Bankruptcy Lawyer. Enter Your Zip Code to Find Local Bankruptcy Lawyers. If a creditor is garnishing your wages, you may be able to stop the garnishment and even get some of your garnished wages back by filing bankruptcy. However, certain exceptions do apply.