Recently the grease on my trailer wheels started spraying out of the bearing housing - hubs. Initially I thought I may be towing with my trailer tongue too low - thus engaging the braking system too often and heating up the bearings. I raised the ball-hitch to no avail.
I called my dealer (Marine Products - Salt Lake City) since my wheel hubs were sizzling on my way back from Bear Lake with the scouts. Not a good situation in the middle of Wyoming!
We checked to make sure the brake actuator lock-out was not engaged - this is a metal button on the bottom side of the actuator. I pushed the lock-out lever with ease, thus the actuator was not in lock-out mode. We concluded that the hydraulic brake actuator had gone bad (it moved forward and back with little pressure or weight). Apparently this is something they have noted several times this year.
I bled the braking system, re-lubed the bearings and drove the rest of the way home - the hubs stayed cool but I also had not brakes on the trailer! It is also amazing the difference in acceleration and performance of my vehicle without the trailer brakes engaged continually.
Today the trailer is being serviced. Hopefully no further damage to the bearings or axles.
Word to the wise - when you hubs get super hot - check to make sure the brake actuator is working correctly.