E40D won't shift into 3rd, 04 OD

[HondaTypeRk20]

Here's the deal...

I own a 95 F250 PSD auto ext cab, body is rough (LOTS of rust), runs awesome. Got offered a trade for a 97 F250 HD auto reg cab with trans issues for straight trade. His truck looks great and would save me alot of money and man hour worth of body work. Here's the issue with his trans...

Reverse, 1st, and 2nd is there. Will not shift into 3rd, high rpm's itll try, but revs then just goes back into second.

I asked him what happened when he lost the gears and told me he heard a loud grinding noise. Drove it home even though he was only 50 feet from the house.

Any idea's?

Thanks in advance!

HERE'S THE UPDATED INFO....

Well, it does shift into second, but 2nd will only go up to 15 mph. 1st will only go to about 5 mph. It drives like its in 4 low, but the 4wd selector is in 2wd, and the truck is in 2wd.

Also, found the trans lines weren't fasten down and was dripping fluid. Put about a gallon of fluid back in. Pretty the kid didnt know it was leaking, and thats what fried the trans, and most likely running the crap out of it.

Also, I did end up trading him.

[HondaTypeRk20]

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