Thank you all for your help. I did bleeding ( couple of my friends helped me), but there was no air. Interestingly, now the pedal seems to be in the right position. I have now idea how it returned to the original position. Is that because I drove it around 50 miles?

 

possibly, rear drums have a auto adjustment on them, that might have done the trick.

 

I'm going to change my pads soon too, and when shopping around I came across a manufacturer warning stating that the brake pedal will require you to push further at first, but this effect wears away eventually. Sorry I didn't see this thread earlier to say it was probably temporary, but I'm glad it all worked out.

 

For drums,.. you can adjust the back by putting the car in drive and lifting the ebrake a few times.
I wonder if it can be done with rear discs??

 

Nope.

 

yea, just adjust the knob...

 

You can even bleed them yourself by using a rubber hose and a bottle.

1. Break loose the fitting.
2. Get a hose that will fit snug on the fitting and push it on.
3. Get a clean bottle (preferrably clear) and fill it about half-full with brake fluid.
4. Run the hose down into the bottle.
5. When you pump the brakes, the air will go out of the hose and escape the bottle. Only fluid will be sucked back in.
6. Tighten the fitting. Done.

It's worked for me many times. You just have to make sure to watch your fluid level in the bottle.

 

And yeah... You need to bleed all 4 corners too or at least it would be a good idea to do all 4. It really doesn't take that much time with 2 ppl. One to deal with the fitting, hose and jar and one to press the brake pedal while you yell at him...