Call the Title Officer with who you signed the papers at closing at the Title Company.
Now of course if this was a private deal with all cash and you chose not to get Title Insurance
then it is a different story.
The contractor will threaten and intimidate you. You need to refer him to the Title Co.
The Contractors State License Board has recommendations if a mechanics lien is filed on your property.
Keller Williams Realty
You may be protected by your title policy but you may not if the title company could not have known about the potential lien. Call them and find out. You may need the help of an attorney.
Mechanics lien law is also in the realm of attorneys and beyond the knowledge of Realtors.
The only other thing I'm worried about is that I am thinking about pulling a home equity line of credit from this house by early next year to buy another rental property. Would having a lien placed on the house affect this? If my title insurance pays off the lien, would it still negatively affect my ability to pull HELOC? (Like a point on a driver's license that lingers for a few years.)
As Terri noted--and she's so fast at answering these questions--you have title insurance which should help defend your title against claims. Give the title company a call to let the know about this problem.