So in short the car was cosigned by my ex and I. I couldn't make the payments so gave it to her. She in turn gave the car to her father. He put the car in his name and took over the payments. I know leaglly I was the main loan applicant and she was the co-signer but I signed the car over to her and her father by way of the dmv because I couldn't make the payments. She told the bank that I still have the car, which is not true because Her father has it. All these documents should be in the DMV's archives and I should be able to access them. What should I DO legally to cover my behind?

To legally cover your behind? Pay off the loan. The loan company does not give a fig what you did with the car. The sale was illegal (signing over a car you don't own the title to) and they still hold the title. They can repo the car from the dad and sue you for the remaining balance.

And when I say can, I mean that is exactly what they will do.

Edited to add: in theory the dad can sue you for any expenses that he incurred through your illegal sale also, although that would be a tougher fight for him.

I don't quite follow the chain of events here - who originally owned the car? You? Or was it joint ownership? How were you able to sign the title over if you still had a loan outstanding? When you gave her the car, did she sign any sort of agreement with you saying that she would take over payments? If so, you may be able to use this against her in a lawsuit. But if not - I see nothing here that relieves you of responsibility for paying the loan on a car you gave your GF. As Stevetcg says - the bank doesn't care who has the car now, just that they get reimbursed for the money they loaned you.