Hampshire looks to recoup monies owed when residents leave town

Hampshire homeowners could soon find the economy is not the only factor hampering their ability to sell their house, especially if they owe the village money for services like garbage collection and water and sewer services.

Village officials are considering the introduction of a real estate transfer stamp that will be required before the sale of a home can be finalized. To receive the stamp homeowners must pay any delinquent fees or penalties. The stamp differs from a real estate transfer tax because a fee is not assessed for the stamp. Nearby Elgin requires a transfer stamp for the sale of a property.

Hampshire Village Manager Eric Palm said the transfer seal would be stamped on the warranty deed, which is then filed with the Kane County Recorder to complete the sale.

"This is a growing problem for the village and we are looking for a more effective way to address people with outstanding encumbrances with the village before they leave town," Palm said. "It is almost an exit interview to make sure they square everything away."

A transfer stamp could be withheld for unpaid ambulance bills, parking and traffic tickets, as well as for water, sewer and garbage bills.

Village President Jeffrey Magnussen said the village has seen an upshot of homeowners leaving town without paying off debts since the housing market began to crumble.

"We have a number of foreclosed homes in the village where we cut the grass and have unpaid water and sewer bills that add up," Magnussen said. "Each time we have to file a lien against the property. With the transfer stamp, we will keep a running tally and when the house sells it will help us collect money that is owed to us."

In the case of foreclosed homes, the bank that takes over ownership would be held responsible for the outstanding payments. But Magnussen said there have been a number of instances where a homeowner sells the home and fails to check in with the village. The outstanding balances range from a couple of hundred dollars to more than $1,000, Magnussen said.

While village staff are still researching the proposed transfer stamp, the concept received support from trustees.

"It is the right thing to do," Trustee George Brust said this week. "It protects the people who buy the house so they are not confronted with past due notices and bills that are being sent to that address."