The house has sufficient equity to cover the 1st and the 2nd.I own the 2nd and we want to take ownership subject to the 1st. and then cure the 1st refinance it. 

Here in WA there is a date needed to cure by, 11 days before the sale.  

The reason your MAO stuff is below the purchase price from day gone by is because you are probably curing deferred maintenance issues that doesn't bring values up beyond what the narrowly defined comps suggest.

(I'm currently deaf in one ear hopefully it's not permanent it's from a recent accident the tinnitus is killing me)I also mostly lurk here and read frequently.

What's yours cost to cure, what's purchase price, and what are you selling them for?

Even if a problem was cured or repaired, the issue needs to be diosclosed as having been repaired and in many cases by who along with any warranty if applicable.I do know of a case concerning defects not being disclosed, the inspector provided a copy of the inspection showing that the seller and listing agent had knowledge prior to sale and disclosure was not given, I know the matter was satisfied and the agent found another broker saying she never saw the report (but she should have).

I have back problems and pretty bad tinnitus that got me VA disability.

I did my best to cure it (clean, remove and replace insulation needed) but without removing a ton of wood I doubt I could have completely removed the smell in the short time before closing.Good luck with the issues!

If the title defect is something that the grantor may cure, then the covenant of further assurance requires that the grantor do whatever is necessary to clear the title.

It is highly unlikely that you did as the requirements are so demanding that very very few people do meet all of the requirements.Regardless, I would send a demand letter for them to cure by paying you for the taxes.