Ok, so I just purchased a 2001 Ford Excursion 4x4 with 7.3 Powerstoke. The truck has 130,000 miles, an 8" Skyjacker lift, and 35" Toyo AT tires. The truck runs great. Now for the problem. The brakes have been soft since I bought it last month but going from diesel to gas to diesel I remembered there was a difference. Today, I was backing a small, empty single axle trailer down the slope in my yard and when I mashed on the brake pedal it went to the floor. No brakes, runaway truck and trailer........the emergency brake stopped the truck but the trailer jackknifed into my rear quarter panel. So, now the truck only has minimal to no brakes and I have to use the EB to stop. What gives? The owner of the car lot that I bought it from had installed new tires (35x12.50x17 Toyo AT2 Extreme), brake pads, all new fluids and filters as he intended to keep it as his DD. But he decided the lift was too much at his age. So the truck has been well maintained.

Last bit of info, no brake fluid anywhere and the MC is at the max line with fluid. The other day I did notice fluid on the ground. It was from the power steering reservoir. When I checked it, I found the fluid appeared to be coming from the cap. Upon looking further, the fluid level was to the top of the fill neck. Since the "boost" come from the PS pump, could this hint that the hydro has stopped working?

Help!?