What are the consequences of having a bad rear axle seal?

Your most immediate problem would be getting gear oil on your rear brakes. That will contaminate the brake pads and make the brakes grab or make them ineffective. Your Explorer has a small drum brake inside the rear brake rotor. This is the parking brake, and it would get soaked with oil first, and ruin the shoes.

well if your going to check the parking brakes you will need to remove the brake caliper and rotor to check them and when you do that you should be able to see if you have a leaking axle seal or not. as far as what can happen well you could run your rear end out of fluid causing major damage to the barrings that sit on the axle or the barrings inside the differential its self , good luck to you

i've never seen differential run dry because of an axle seal, although in theory it could happen. mainly a leaky seal will just contimanate the brake shoes and drum. or in your case, the parking brake shoes. if you're not hearing grinding noises it'll be okay

Will cost you thousand later, the seal will only cost you $5-$10 and will take about 45 minutes to replace.

Eventually enough rear end fluid would run out and play havoc with your rear axle.

as long as it did not run out of fluid. it will be just fine. when they replaced the seal, if there was a problem, they should have let you know.........

Yes, I would verify this with the dealer but have seen it before.

Bad rear axle.XD

probably heat up and cease on you at any moment

it will leak