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Leaking Brakes?

The rear passenger brake started leaking suddenly on my wife's '91 740.
She says she was driving and suddenly lost brake pressure. I just swapped out the front pads and noticed after having the car sitting for a few minutes that the rear brake is leaking... the fluid level in the resevoir is still pretty high and the brakes feel mushy and seem to drop if I sit w/ the brakes pressed.

oh yeah... and the SERVICE light comes on for a short time when I start the car up but then goes out...

Any ideas?

Thanks.

Rolly






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