I have this 98' and it's stuck in 4hi with no reverse, according to previous ownersit has reverse in 4low and the transmission is good supposably it's the transfer case, any suggestions? a new transfer case is $1000,would I be ok to go to a junkyard and get one? and is there a way to find out if this is really the problem? very frustrated this is my only vehicle.

 

Forward and reverse gears are no way connected to transfer case. Does jeep roll forward and backward when tranny and transfer case are both in neutral . Not a couple of inches either a few feet...So you eliminate any drive line binding causing the issue. Low gear in the transfer case has alot more torque high gear has which can be forcing things to move that high gear cant.