Small Engine Troubleshooting Problems? Ask a Mechanic Now.
Welcome to JUST ANSWER small engines, let me try to help you !! I don't know it all, but maybe together we can get you a satisfactory answer!
See the above link. # 63 are the two bolts that hold the mechanical brake caliper. Loosen these two bolts, tap around on the brake to release it. The use WD40 on the break parts, and re tighten the bolts. That should release the brake and take care of the brake release problem.