Want to buy house in 2 years - pay collections in full?

[mackandblues]

I want to buy a house in 2 years and have about 5 collection accounts including a couple charge offs. Range from $200-2500 and want to work on getting them off the credit report. Do I pay them in full or settle for a reduced amount since I want to get a mortgage in a couple years? Thanks! 

[simplegirl]

If you could list out the collection agencies so that people can let you know if it can be paid for delete. And also list out you charge off and amounts.

[BMW_328i]

Hi,

First, I would work on the most recent accounts.  Those are the ones where you must be a little more agggressive, e.g., PFD.  Using time as leverage may get a CA to settle and still delete.  So, with the newer accounts, starting offering 50% for PFD and work your way up if they are resistant.  For the older ones, you may have to PIF as you won't have any leverage.

Also, IMO, you may want to move your goal up a year, if possible.  The FED may raise rates by Q1 of '22.  I'm trying to purchase a home as well.

Good Luck!