Dude: Either your very lucky and the Belt has jumped off the bottom pulley or you really have to put some adjustment into that Belt Tension-er lol .

P.S. Also I hope that snow isn't frozen within the Impeller (Turbine) ! Also why is there a Gap between the Gasket Surface of the Gear Case ? I assume you have already been investigating lol ?

I noticed the gearbox too. Looks like it broke. BTW, that model number is Murray not MTD.

Yes, it is a Murray.

1) I started opening up the gear box to see if anything was broken that is when I took the picture. I wanted to take the gear box fully off, but couldn't so that is when I took the picture

2) I was testing the auger to see if it would pick up snow that is why there is snow on the auger.

3) I took the front auger housing completely off now. Once the auger housing is completely seperated from the motor the auger spins freely. Therefore, I put the bolts back in the gear box and tightened them up.

4) I have just greased "Zerk fitting" with a grease gun as the manual said.

The engine runs good. The wheels turn properly and pushes the blower, it was just the auger stopped suddenly. The shear bolts are okay.

Does anyone have any other suggestion which may stop the auger from working properly?

Could the ends of the auger shaft, where it turns on the sides of the scoop, be rusty from sitting? Does the belt tighten up when you pull or push on the auger control handle? Can you turn the auger by hand when the engine is OFF?
Also, look very carefully at the picture---can you see where the auger is sitting on the edge of the concrete block?! One tooth of the auger is caught! Won't turn that way!

If you took the auger housing off, then it included the exposed pulley on the back side of the impeller. Right? You turned the pulley and it turned freely. Right? You put it back together and it won't turn. Right?

Is the auger belt - brake not disengaging when you operate the handle?

It was the auger belt. I put a new belt on, bolted everything back up and warmed it up and the auger started working again.

Thanks for the help