This sounds like the transfer case shift actuator is out. To be sure remove the actuator and see if it moves with the key on move the switch and you should see some movement. Also check the connector for corrosion.
Here is a diagram to help you see what Im talking about. (Below)
Please let us know what happens so it will help others.
Cheers, Ken
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Thursday, September 7th, 2017 AT 1:55 PM