Ok so my engine is making a ticking sound in the far back what is it?

My guess is that it's a lifter. It's best to talk with a dealership mechanic about the best course of action with your specific vehicle. Usually a engine will last a very long time with a lifter tick. And don't forget to always check for recalls on all the cars you own. Here is a couple I found for your call. In this case it has nothing to do with your ticking problem but for future reference its always a good idea to make sure it's not part of the problem.
Auto Recall Date:MAR 23, 1994 Vehicle Component: POWER TRAIN:MANUAL TRANSMISSION Estimated Vehicles Affected:31295 1992 Subaru Legacy Defect Summary:WHEN THE VEHICLE IS DRIVEN CONTINUOUSLY UNDER EXTREMELY COLD TEMPERATURES (-22 DEGREES F.) AND HIGH HUMIDITY WEATHER CONDITIONS, THE TRANSMISSION BREATHING (AIR) VENT CAN BE BLOCKED DUE TO MOISTURE FREEZING AT THE OIL LEVEL GAUGE. IF THIS OCCURS, PRESSURE INSIDE THE TRANSMISSION CASE WILL INCREASE AND PUSH OUT THE REAR OIL SEAL, CAUSING TRANSMISSION OIL LEAKAGE. THE LACK OF LUBRICATION CAN BURN THE INTERNAL COMPONENTS OF THE TRANSMISSION, CAUSE THE TRANSMISSION TO SEIZE AND THE VEHICLE TO COME TO A SUDDEN STOP. Defect Consequence:SUDDEN STOPS WITHOUT PRIOR WARNING CAN CAUSE VEHICLE OCCUPANTS TO BE THROWN AROUND THE VEHICLE AND CAUSE LOSS OF VEHICLE CONTROL WHICH CAN RESULT IN AN ACCIDENT. Remedy:DEALERS WILL MODIFY THE OIL GAUGE PIPE AND MODIFY THE OIL LEVEL GAUGE (DIPSTICK) OR REPLACE IT, DEPENDING ON THE TYPE OF DIPSTICK IN THE VEHICLE. Notes:SUBARU OF AMERICA, INC. Auto Recall Date:APR 01, 1992 Vehicle Component: FUEL SYSTEM, GASOLINE:STORAGE:TANK ASSEMBLY Estimated Vehicles Affected:9500 1992 Subaru Legacy Defect Summary:A MISALIGNMENT OF THE REAR SEAT CUSHION LATCHING BRACKET REINFORCEMENT PLATE TO THE FLOOR REQUIRED A MACHINE TAP TO CLEAR THE OPENING FOR A MOUNTING BOLT. THE TOP OF THE FUEL TANK MAY HAVE BEEN PUNCTURED WHEN THE TAP WAS USED. Defect Consequence:THE PUNCTURE IN THE TOP OF THE FUEL TANK COULD CAUSE FUELTO LEAK, WHICH COULD RESULT IN A VEHICLE FIRE WHEN LEAKS OCCUR NEAR A SOURCE OFIGNITION. Remedy:INSPECT THE FUEL TANKS; REPLACE THEM IF THEY ARE PUNCTURED. Notes:SUBARU OF AMERICA, INC.