Abandoned?

Hi, My daughter-in-law signed a car loan for a friend who was living with her. She said she does not remember the friend signing the contract/sales papers. But when the registration card and property tax came, in the friends name was on them. So we figure the dealer of the salvage place put her on the paperwork after my daughter-in-law left. The friend's husband worked at the salvage yard and we figure the dealer did that to help protect him and his wife. They left my daughter-in-laws place a few months back, with a big stink...cops and all! Now the friend has kicked her husband out and can't make the car payment...so the car is now back at my daughter-in-laws. The tag and insurance which my daughter-in-law paid for were turned back in to the DMV and ins. cancelled, after they left. The dealer could not explain how the friends name got on the registration/tax papaers. Said he could do paper work to reposses it and leave at my daughter-in-laws house 'til done. Few mins. later when he found out she had turned in the tags he said he would have to refinance it to get it correct. Then a few days later he says he went to the dmv and they said he had to physically repo it. After the 10 days the first one comes in to pay the money left due on the car will be the owner. The dealer and one of his employees is making it sound like my daughter-in-law with have first say since she is now paying on it, but frankly her and I are both afraid he will screw her. How is this all fair? And is there anything my daughter-in-law can do to fix this without losing the car. Can she get the friend for abandoing the car since she couldnt pay for it and turned it over to my daughter-in-law. My daughter-in-law has been making the payments for three weeks now.