One problem related to transfer case has been reported for the 2007 Ford Explorer. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2007 Ford Explorer based on all problems reported for the 2007 Explorer.
In 9/2013 the vehicle was taken to the dealership for a metallic sound that occurred while it was turning or coasting. Diagnosis was that the 4x4 module was commanding the transfer case to engage when not commanded. The dealership received an improperly recommended module from Ford. They ended up using a sport trac module. This stopped the noise but caused the traction light to come on. We were advised to replace the anti-lock brake module. In 2/2014 we replaced the anti-lock brake module. On 3/25/2014 the transmission lost reverse and first gear and needs to be replaced. Ford will not admit the wrong part was used and caused the transmission to go.