This weekend my husband was washing the car and noticed some thick black gunk on the left rear wheel. In washing it off, he discovered it was grease, not the thick buildup of brake dust I had previously assumed it was (we don't bathe it very often ). There is thick black grease ALL OVER the brakes on that side. Any idea where it could be coming from? What do I need to check next?

 

Sounds like a hub seal leaking the gear lube from the axle. There is a rubber O-ring that seals the hub to the housing that goes bad.

 

Quick reply! Thanks! So, this may sound like a stupid question, but, can the O-ring be replaced by itself, or is it a part of some bigger assembly I need to replace? I am no expert, so I like to ask lots of questions before I start messing with stuff, or ordering parts. Thanks again

 

Yes, it can be replaced by itself. Did it soak the brake pads with oil? You'll need them too if so.

BUT, I might also as add it can be the hub assembly, which has to be replaced as a whole unit, and not cheap. The o-ring goes behind the hub, which is easily replaced while the hub is off.

I'd wait 'til someone with more exp. with D2's comes in that be able to give a better idea

 

Usually if the o-ring fails, you tend to leak gear oil. If you are leaking grease, that would be coming from inside the hub which runs a special heavy grease. You will most likely need a replacement hub.

 

Your hub seal is leaking gear lube out of your differential like Kenk said and it mixed with brake dust forming that goo you see.
So you need to check your fluid level in your rear differential and check your rear axle breather to see if it is clogged.
Then replace that hub seal if it continues to leak.

http://www.roverparts.com/Parts/FTC4919G.cfm

I have found that when the axle breather becomes clogged the pressure that builds up inside the diff when you drive needs to escape and it will leak out the weakest spot.
If you replace that hub seal and the breather is clogged then it will start to leak somewhere else too.

 

We've looked at things a little better now, and placed an order for parts and stuff, so thanks again! Will post an update after repairs get under way.

 

Is that common to the DI as well or does it only apply to the DII. I am not familar with any axle breather? Thanks.

 

Yes, the D1's have axle breathers.
The hub seal is more expensive, about $6 vs $1.95 for the DII, but I feel that's offeset by the fact that new bearings for a D1 hub are only about $13 ea (and you can get them everywhere), vs $250-$300 for a DII.