Lying about anything regarding obtaining a mortgage, including occupancy is a Federal offence. You do not have the money to pay those fines or else the mortgage would not be an issue. Have the relative arrange their own financing if they want to buy your home.
NMLS # 6395
Financing Kentucky One Home at a Time
Is it say so, It is not a problem. It is not assumable, your family member have to get a new mortgage in his or her name.
Contact a Mortgage Broker they can qualify over him or her over the phone.