Remove the cowling, on the Starboard side you will observe the three positions of what I called the shifter rod connected down to the lower unit, the cable from the shift lever is pinned to it. Have someone shift the lever in reverse the position of the connector clearly shows you if its all the way back, if not a simple adjustment is needed, shift to forward an verify it travels completely forward. I disconnected mine (cable) and did this same procedure and got it perfect the first time.
Rule the cable at all times should be adjusted to allow the shifter rod to travel completely in both directions.
As for the actual problem you reported it very well could me more than just adjustment
PS I own a 1987 v4 140 Evinrude
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