I came out this morning and notice a big spot on my rear differential. Upon further investigation I noticed it was comming from the front of the differential not the rear. I know the pictures are t the best but could someone give me some insite on what needs to be fixed.

 

given the description not the pictures I would suggest the pinion seal is bad. perhaps the breather is plugged.

 

I was thinking a seal as well. Where is the breather so I can check?