I do have bad credit and old debt, I just received a large sum of money. How should I pay off my old debt, invest wisely and purchase a new home. I have considered a lease with an option to buy. Should I try to get a mortgage now or see how things are in 2 years? I want to pay off my debt and invest some money in CDs- but I'm afraid to give up too much of the money too quick.
Thank you in advance.

If the debt is active, then pay it off. If it has been written off, offer a settlement of between 50%-75%. That should clear up your credit enuf to get a mortgage especially if you can put down a large down payment.