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Any Known problems with AWD/ I have one that the front drive shaft was disconnected!! V70-XC70 1998

Hello, I am a dealer and a Volvo enthusiast and I only buy Volvo's. I bought a 98 xc70 cross country last week and I knew it needed some work but, man did I get a suprise today. This is the first AWD volvo I have ever dealt with. I was looking down at the back of the engine near the exhaust manifold because I thought I heard and exhaust leak. So, I saw the shaft where the drive shaft hooks to go the the rear end. But, I didn't see anyhting hooked to it. So I got out the ramps and drove it up and got under it and it is missing the shaft that goes from the transmission to the rear shaft. So I will assume that the transfer case is bad and someone unhooked the drive shaft so it could be driven. Has anyone ever heard of this. What could the problem be so these people would do something like this. I will assume it is an expensive fix! I bought the car at auction so there is no taking it back I'm sure!!!

Thanks
Dennis






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