Id look into getting a better tow bar that is bind free.
I have a awesome tow-bar my Xj came with and after looking up the price for it (it was about $ 900). Mine has 2" small recievers mounted under the frame (uni) that it can be unhooked from (if I ever remove it) but I keep it on just in case, cause a rental truck would be cheaper than a tow-truck.
The original owner towed it behind a motorhome and has no issues so far.
Its an (All terrain Non-binding made by roadmaster)
I'll get some pics for ya tomorrow when its better light outside.
But for now I'd mount it off the front of your bumper . Having it hanging under like that is a weak area to mount to. You ahould be able to straighten that once ya remove it.
To give ya an idea how its susposed to be mounted check out S8NNG8 's build in the non-tech section.
Hope that helps.