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.
Limits on Wage Garnishment in Illinois. There are laws that limit how much money your creditors can deduct from your paycheck. These laws exist to help ensure that you have enough income left to pay your own living expenses. Federal law limits the amount of money creditors can garnish from your wages.