I had work done on 1987 subaru gl 1.8 liter -Front wheel drive with 4x4 on demand.There is a wire missing from a solenoid on side of tranny to a  screw in bolt with 2 wire leads on it. no one knows what happened to it or what it is or called.Car seems to be stuck in 4 wheel drive.  Need help      Used car...........

G'day mate, 

 

The broken wire will be from one of the switches on the gearbox.  A pic will help identify which one it is.

As for the 4wd, is this gearbox a single range gearbox?  If so there's probably something wrong with the vacuum 4wd engaging system.  You can manually pull it out of 4wd by jacking one wheel off the ground (to release any binding), get under the passenger's side and find the lever on the side of the gearbox near the rear of the box.  Move this in the other direction to what it is and you should be back in 2wd.

Cheers

Bennie