screwed by cosigning for car loan

[Dave Rifkin]

My sister-in-law cosigned a car loan for her son. He has recently moved from NJ to Colorado and is not longer making payments. My SIL is in the process of trying to buy a house and this situation is screwing her credit big time.
The son claims to be looking for a cheaper car so he can "dump" the car he's driving but, this is moving at a snail's pace.

Could she, legally, have the vehicle repossessed and returned to her so she could turn the vehicle back in or sell it off? What are her best options to get this resolved so it doesn't do anymore damage to her credit?

I know she should have never cosigned in the first place but, you can't tell some people what they don't want to hear.