Have a 1996 Neon with the same problem I am currently working on. It
did the same thing to me 6 months ago. At that time I changed the brake
shoes and the wheel cylinder. Now the problem is back. Pads are still
good. I think the problem may be a combination of 2 things. A large lip
on the inboard side of the drum and the drum is out of round. The lip
is bumping the pads enough to allow the pads to catch and jamb as the
smaller diameter of the drum comes around. There is also one area on
the inside of the drum that you can see has been hot and left a heat
discoloration or scorch mark about 4 inches long. I will see if the drum can be
turned. If not I will just replace it. This problem only occurs on wet or slippery pavement at slow speeds. At fast speeds it creates the scorch mark on the inside of the drum.
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If you can feel the thump of the engine when you select gear I would say the trans is working, most likely I would say that your emergency brakes are locked, your rear shoes are binding with the drum. 2 causes, a frayed cable may not be allowing you to release the the brakes, or the springs are soft in the rear brake area and not releasing. Jack up the rear put in neutral, emergency lever off, see if wheel can turn by hand, if not, remove wheel hit brake drum with rubber mallet to see if this releases the shoes off the drum. Inspect emergency brake cable first to see that there is little tension holding it. let me know how you go. cheers.
I checked Searspartsdirect.com for that model number and they listed that number, but with an extra 0 at the right end. I couldn't find a belt release lever illustrated anywhere like that on my old Craftsman belt sander. On mine, you just flipped the lever either forward or back to release and tighten the belt. (still works great) There is a spring that pushes the front roller assembly forward when the lever is operated.
Have rear brakes checked for improperly adjusted, as well as emergency cables partially seized. Backing up and stopping quick, frequently, can also cause self adjusters to operate & tighten things up too much.
You didn't say what the shop checked so I may be repeating something they already looked at. Check the brake caliper and I would also drain the old brake fluid and put in new fluid. You didn't mention if it was making any noise when this happens so I'll assume it's not a problem with your wheel bearings.
Bad Differential or LR- brake caliper is locking up very bad. I am leaning more towards bad differential-(rear end) Take off differential cover and look inside gear may be broken. Contact if you need more help. thanks for using FIX YA