Just put in a new used hatch latch.. The hatch has been seized open since I've had it. I ziptied it closed till I got a latch out of the junkyard... Found a latch in a 1998 Forester which is same body as mine, pulled it and cut/ broke it out of the pins for the handle and lock because I didn't know how they worked..
Well, Subaru made them easy to work on. the lock actuator from the key lock just unclips and swings out of the way so that the rod just comes out. The handle rod, you just put a screwdriver behind the plastic retainer and it pops out.. Replacement was about 10 mins including removing the interior panels