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Good morning, my name is ***** ***** am I speaking with?
Did you happen to stick your hand down in there and see if the water was warm, or cold?
Can you be more specific by what you man by "above the water pump between the connection of sterndrive to the block"
The water pump is on the front of the engine, not the back. Do you mean that "height wise" the leak is higher than where the water pump is?
Does the engine have power steering?
I ask because if it does, they stick the power steering cooler back there.
If it does have a power steering the coolers are prone to rot and also crack.
But if you did not have one.... Or if it was okay, the next place I would look at is the block core plugs. There are 15 of them or so, all over the bock. And the ones that like to pop out are the ones that are installed into the rear of the block, behind the flywheel.
Click this link to pull up a picture. On his one here, you can see the center one is in place, but the 2 off to the side, are missing.
It's usually one of those 3 that pops out. Does that make sense?
Unforunately what you are going to have to do is pull the engine back out and run it on land to confirm the leak. And then after that, remove the bellhousing and flywheel to fix it.
Do you have any further questions on the issue?
I wouldn't know exactly where it's leaking without seeing it myself. If there is an empty screw hole can't you put a bolt in it?
It could be the exhaust pipe. If that is loose the gasket will not hold. And it will leak between the bottom of the exhaust pipe and the transom plate. Those are known to leak.
I don't know without seeing it. I will opt out. Good luck.