My husband co-signed for an auto loan for a friend about a year ago (he's been told by the lender that he's the primary on the loan). Friend was supposed to refinance within 6 months, never happened and she now owes almost as much as was originally financed (late fees). The registration reads "husband" or "friend". My husband has spoken to lender and they say if he pays off the loan they will send the title of ownership to him, he, in turn, can take it to the DMV and have her name removed and mine added. My question is at that point we would want to contact friend and inform her that she now has unlawful posession of the vehicle and she needs to return it or we will report it as stolen or possibly even just take the vehicle ourselves. Is this legal?