90 TLRD 2005 not shifting

This is a 2 stroke 90. @ 3 weeks ago we were using the boat down in Pine Island, the motor was getting harder to put in gear as the day went on. My original thought was a binding shift cable, lubrcated all points and left it at that. Returned a couple weeks later and the boat would not go into gear. Pulled the boat and checked gear lube and it was all salt water with some black sludge. Pulled the lower and saw the seal around the shift rod was not seated correctly. I tried to turn the shift rod and it would not move. The unit was full of saltwater for @3 weeks, drive shaft bearings are rough but the propshaft feels ok.The magnetic drain plug did have some metal stuck to it. Is this repairable,rebuildable,should I look at one from a rebuilder or purchase new. The top end is fine. Engine went out of warranty in August. What are the costs of the options. Good rebuilders or best place to by new. I am Located in Sarasota Flirida. Thanks in advance for any help.

Tom

[boats.net]

If only a couple months out of warranty then let your dealer look at it and call Yamaha, Yamaha may help.