No she did not buy it, all real estate contracts have to be in writing in most states. Next there was no bill of sale, no deed transfer no nothing.
Merely paying taxes is just paying the taxes of someone else, unless bought at a tax sale.
Also they will not take you house if you are just behind one years taxes ( at least normally) So if the grandfather is on the deed, if no new deed was ever done, if there was never any legal sale of the property, the aunt has little legal claim.
From a moral standard, yes she has a right, but law has nothing to do with moral right, I doubt her claim will stand up in court
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