Rear Noise Mainly On Deceleration

Sounds like a bad wheel bearing to me, it can also mess up the shaft itself but they make a sleeve if I remember correctly that can cover the bad area on the shaft. If the bearing is really worn you can feel the play in it when you lift up and down on the shaft. You have to pull the shaft to fix the seal anyway so you can inspect the bearing better then.
 
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I cant understand why I cant hear the sound outside the car only inside. The stethescope could not pick it up either. One more thing, the brake pads are really worn out. I will change the brakes also to eliminate that
 
From what I can see it looks like normal seepage, it usually leaks out the bottom of the shaft and shows on the backing plate and when real bad will get on the brakes. Rear wheel bearings when bad will make more noise when making a hard turn.
 
Outside wheel bearings and seals are fairly cheap. Rent a slide hammer and get to work. If you pull the axle and the spot where the bearing rides is torn up you can get a "repair" bearing that is a big housing that moves where the bearing rides on the axle. They are a bit more expensive and don't use one unless you need it.

Replace those and add new fluid etc and report back.
 
Well guys, I decided to tear into the car. The right hub had a ton of build up. I have not pulled the seals or bearings as I will rent the tool tomorrow. Right axle is out and looks ok from what I can see. No metal shavings in the differential. Axle bearing moves pretty good so I cannot tell if its bad. The seal was leaking. I will upload pics now.
 
The bearing appears to be turning ok. I will remove seals and bearings today and compare both sides. I did damage the o ring on the axle were the c clip goes. Not sure if its needed. Also, what type of gear oil do I need and how many quarts? Synthetic? I know I need friction modifier as well.
 
Ok bearings and seals are out. A roller came off the right bearing as I pulled it. The left side was intact. Not sure if the roller was loose or it came off with impact of the bearing puller. On the left hub there is slight gouging were the bearing sits. This was probably done with the bearing puller. Hope it doesnt affect anything. Any advise would help
 
The gouging in the tube isn't anything to worry about. The bearing doesn't move and just needs a flat surface to rest on. Get new seals, bearings and seal it all up (don't forget FORD friction modifier, not parts store junk).
 
I have everything back together. Doing the rear brakes now. I guess I have to go to ford to buy the modifier. I wish I would have known. I will return the oreilly stuff. For gear oil I bought synthetic 75- 90. Is this what I need? Bought 3 quarts
 
should just need 2 bottles of it. The weight is personal preference but I've always used 75/90. Fill to just below the hole.

Also while your there make sure the breather is clean and clear of debris. That will help your new seals last longer.