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Default Mercruiser i/o will not go into neutral

Hi,
I have a 1999 Bayliner capri with a 4 cylinder mercruiser. When the
boat is out of the water and connected to the water hose and running.
It shifts in and out of gear fine. When the boat is in the water and I
switch the gear shift to neutral, it will NOT go into neutral most of
the time...it just stays at the "no wake" speed but the shifter is in
neutral. I have to shift it back and forth to get it to finally go to
neutral. Any help would be greatly appreciated.

Scott

 
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