Co-Signer BS!!!!! HELP... determines where my life leads.... :(?

About 2 years ago my husband (a boyfriend at the time) bought a car and needed a co-signer. A family friend of his agreed to help and they got the car. Later we come to find out that she was placed as the Primary and he was the cosigner on the car. He doesnt have good enough credit to be a cosigner. Anyways.. He joined the navy and during the period of not working and bootcamp he missed a few payments. He later sent money to this lady who was holding the car till he could ship it to his station. Come time to ship it she says no. Now my husband is paying an 800$ payment on a car he doesnt have in his possession. This car is determining if i can go live with him or not and I dont think this is right. There has to be something we can do to get that car. onceagain the agreement which was verbal was that of if he was to buy a car himself pay the payments and have insurance. And if you were to look at the paper work he is just the co-signer. and if thats the case this lady isnt paying the payments.... So my question is what can i do..... I need that car or I need that ladys name off it or his off it. IM IN DESPERATE NEED!!!!!