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Can I prevent a lien on my house if contractor refuses final payment

New York

I have a contractor that’s working with a 203k hud loan from my bank. Because of lack of progress and unsatisfactory trade practices an engineer was hired to do an contractors competent inspection. There was multiple issues with the work he has done that requires reinstalling almost 50% of all the work that was performed directly by the contractor. We have tried to settle the final exit draw to remove him from the loan but the contractor refuses to respond and settle and has threatened to put a lien on my property. I’m looking for some advice If he does manage to get a lien

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