Burning metal smell coming from rear

[chiinook]

My family just took a road trip in our 2007 Corolla Verso and about half way through we began to notice the distinct smell of mechanical burn coming from the rear of the car. 

I checked the temperature of all the brake pads and they were all completely cold.

I suspected the clutch as well because I had just backed 4 loads of gravel into our back yard a few weeks prior and I know that had stressed the clutch. But the smell is very clearly coming from the back of the car and there are no indications from the clutch pedal or the shifting process the clutch is having problems.

A friend suggested that the handbrake might be stuck but that would show up in the rear brake pads, right?

Any ideas of what I should be looking for?

[alan333]

I'm pretty sure your car has separate handbrake shoes inside the centre 'hub' of the rear brake discs (like the Avensis).  If so then your brake pads wouldn't necessarily get hot, although the centre hub should.

[KenMavor]

The rear axle and wheels in a Verso have no other moving parts apart from wheel hub, brake pads and internal handbrake shoes.  I would suspect, as said previously, your internal brake shoes are probably rubbing against the inside of the brake disc. 

Is the smell coming from both sides or just one?