@Rodger Curbelo
Without knowing your complete financial picture, I would recommend settling all debts in collections, and get the momentum going with improving your credit score first. Open the lines of communication with collections. Sometimes once they see that you are a good person trying to make the situation right, they will work with you.
Using a credit card to make regular purchases like gas and groceries, automate your payments so you don't forget, and aren't carrying a balance month to month.
Your credit score can be a powerful tool in getting a loan and good interest rate should you ever decide to ever take that route. If you do decide to buy something cash just make sure you have enough cash reserves on hand in case something goes wrong. Depending on what kind of job security you have, I'd recommend having 3-6 months worth of expenses saved on top of cash reserves for the house.
If you are set on buying maybe try finding a good agent in your area that knows how to leverage their resources. They can sometimes find homes with absentee owners that might be willing to sell with a cash offer. This can sometimes be difficult and ends up with a lot of non responses but it has worked before.
