Tcase motor or transfer case itself have failed. These parts are expensive at the dealer at ~650 for motor, ~2k for tcase + installation. If one of those are the issue I would get it to an indy and have them lightly used parts on ebay for a lot less $ (I got a 25k mile tcase+motor on ebay for $200 shipped, these deals are out there just have to look for them).
| PROcede Rev3 | Vishnu Meth | DCI | BMW Perf. Exhaust | AR Coated/Catless | CP-E FMIC | Quaife |