You have painted a rather complex picture of facts, and you have not provided enough facts for me to respond specifically. I will try to provide some probabilities:
I will assume that your father owned the house in his own name alone, and that he willed the house to his own father at his death and that your father's will has been properly probated. I will assume also, from the words you have used, that your grandfather died intestate (without a will). If his estate has not been probated, it should be even in the absence of a will.
If my assumptions are correct, your grandfather's "heirs at law" inherited the house. If your grandfather had only one child (your father), and if you are the only child of your father, then you have almost certainly inherited good title to the property -- subject, of course, to the mortgage and any other liens or encumbrances that might exist. If your grandfather had several children, then each of them would have inherited a share and you would have only your father's share. If your grandfather had several children and several of them are now deceased, their shares would have dropped down to their own children. So it get complicated in that event.
To make certain you are in a position to sell the property, you should make an appointment with a good probate attorney in your area. Follow his guidance. He will probably, at a minimum, prepare an affidavit to be filed in the public records affirming the acquisition of the property by your grandfather, the fact of his death, the number and identity of his children, and the status of title at present. With that kind of evidence in the public records, you can be assured title insurance can be written on the property whenever you find a buyer.
Answered on Feb 28th, 2012 at 7:27 PM