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This is a design flaw in the 4L60E. Check all Technical Service Bulletins.

However, there is also a contributory aspect to this problem. If you have 4WD, over time the seal between the transmission and transfer case leaks. Transmission Fluid slowly leaks into the transfer case, overfills it and then out the vent tube. If you don't check your transmission level every oil change (e.g. 3,000 miles) then your transmission fluid becomes low. Low transmission fluid, equals more heat in the transmission, equals shorter transmission life and the more rapid loss of reverse. The key therefore is to get your transmission serviced every 30,000 miles and check that transmission fluid every 3,000 miles.

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Q: What would cause the reverse to go out on a 98 Chevy blazer?
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