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.
Fair Debt Collection. Garnishment actions on wages and bank accounts. Garnishment of wages comes in two forms; âCourt Ordered Garnishment and a Money Judgment has been grantedâ and âAdministrative Wage Garnishment. Court Ordered Garnishment : This type of garnishment includes wages, bank accounts and other assets.