Outboard Motor Issue

Okay guys, I'm still in the process of restoring my boat, but I finally got a motor, x2. A guy in town was selling an 1986 25hp Mercury that he hadn't used in three years, said it ran great, and it was very clean on the inside. It sat in storage, and was SeaFoamed before he put it away. The compression was also good, so I got it for $400. I haven't been able to test it yet, but so far it all looks positive. Now to my question.

Along with this, he threw in a 1977 25hp Mercury electric start that doesn't work. He said he took it to someone and they said they thought it had a bent shaft. The guy I bought them from says the motor won't shift. Any idea what could be wrong? By the sounds of it the problem is in the lower part of the unit from what I have researched. Any help would be great. Thanks.