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With the door panel off, if I push up on the vertical rod connecting the exterior door handle to the latch, the door will latch properly and also re-open (once only). The vertical rod seem to stick - not sure if the culprit is the handle or the latch. Any thoughts?
Sounds like the exterior handle is sticking, like in the "open" position.
Try getting some PB Blaster in the exterior handle hinge, and if you can, inside the door, where the cam is attached with a screw to the handle.
The spring on the cam could also be broken off, not allowing the cam/rod to lift back up also?
If that's the case, replacing the exterior door handle is the best way to fix this.
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