Best of Luck!
Personally, I'd be wary of any websites or services that offer to fix your credit for a fee unless a reputable specialist (a financial advisor or certified public accountant) directed you to do so.
Good luck with repairing your credit and buying a home.
1.) What you do and how you handle this payoff could actually HURT you! Paying off old collections can and will drop your score. If they are insignificant don't pay them off now wait and speak to a Loan Officer/Credit Specialist and let them tell you how to proceed.
2.) Always try to negotiate a settlement for less than the full balance but request a letter of deletion
3.) Always get it writing! Request a letter of deletion first if the collection company says they won't issue that go over the person head and ask to speak with their supervisor. You may have to pay the full balance in order to get your golden ticket (deletion letter).
4.) Not all collections need to paid off i.e. Medical Bills.
5.) Large balances from past Auto Repo, past due credit cards, etc. If you can't pay them off, get into a payment arrangement, with 3-6 months proof of payments most lenders like me won't require it be paid off.
My suggestion is to speak to a LO with extensive credit experience before you do anything. Remember your final goal if to qualify for a home loan. Let the Loan Officer give you the road map.
Best of Luck!
If you need the name of a good mortgage banker, just email.
I live neat Lawnside!
Eric Axelson, Associate Broker
Licensed in NJ and PA
Kurfiss Sotheby's International Realty