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.
Secondly, although wage garnishment for debt repayment is generally applicable to regular. sources of income from employment, only a portion of it can be levied against. In California, 75% of a debtorâs income is exempt from wage garnishment. 3. The remaining 25% is available for collection. 4. As in the case of bank account levies, wage garnishment for a debtorâs spouse is also applicable under the provision of a court order. 5. Employment income, real property, and bank accounts are the most common assets pursued by