I assume that since this post is old, it was taken care of long ago. I am posting in order to (hopefully) help someone else who comes across this.
I had the same problem with my '03 corolla hood. No front end accident, hood just suddenly wouldn't latch shut one day. When I checked my hood release lever inside the car, I found that there was no tension on the cable. This was the problem. I followed the cable until I found the solution.
What I found at the end of the cable (near the latch, under the hood) was surprising. The fitting on the end of this cable (which is necessary to keep tension on the cable and keep the hood latched) is made from plastic. My fitting had over time been subject to wear and was split in two.
Why this fitting is made from plastic and not metal is beyond me. I duct taped the heck out of it, and hopefully it will hold.
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