Some info general info
https://www.youtube.com/watch?v=nCvUaebXWmY
Link above may help without removing transfer case. Unless you
https://www.ford-trucks.com/forums/666707-how-to-bypass-awd-to-make-it-2wd.html
https://www.youtube.com/watch?v=9s6Aky4fFVI
May have removed front drive shaft due to front differential problems as in video above.
https://www.youtube.com/watch?v=O2clBpsT75w
Transmission trouble codes on link below. May help you figure what is wrong with yours.
https://www.transmissionrepaircostguide.com/mercury-mountaineer-transmission-problems/
There was thought to be a problem with the front diff - so everything related to the front drive system was removed. The problem was a bad hub.
As it is now, the transfer case and everything for the rear drive is intact.
Then the transmission had jerking issues, delayed reverse with a rough shift, 2nd gear. Threw a code for solenoid pack. Pulled it, cleaned it, tested ok, put back in. Still issues. Cant afford to rebuild trans or buy parts to make front drive.
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SOURCE: Worn out transfer case (AWD 5.0) Can I remove case
no you have to most likely replace output shaft in trans and for sure the tail shaft housing of the transmission it would be easier to replace transfer case not sure if the cheapest
it is all wheel drive so realistically the answer is ---no
However if you have a center diff lock switch to make it 4wd then --yes -- you can as that will lock up the diff in the transfer case
Will it damage the transfer case ---no--as there is no front drive shaft( you took it out) to cause a torque wind up problem in the drive train
AS to the park selection -- that is a physical connection of a pall in a ring gear in the transmission and the park action would be the same as in a 2wd vehicle
remember that is a requirement by law to engage the park brake and not to rely on the park selection of the transmission
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