Try replacing your printers' pick arm, input sensor and pick tires. I suggest you contact Lexmark Technical Support.
It sounds like the paper exit sensor is broken. It happens a Lot on these printers. open the back door shine a flashlight into the middle of the fuser, look for the sensor to stick up into the path of the paper, You should be able to flick it back and forth with a pencil point. If the top is broken off you'll need to replace that little sensor flag on the spring.
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