It's easy to argue ......
..... with one statement taken out of context from a post and build a whole case around just that. I'm not going to waste our time with a come-back that will, no doubt, be delt with in the same manner. Nor will I react in the same manner, by picking something out of your post, and "soap box" that item.
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OP~
If you did contact the CSLB as I suggested in the first paragraph, then you'd know that just because a lein is threatened, or even placed, does not mean it's the end of the world, provided steps are being taken to deal with the situation.
The CSLB is a "big stick" and a tool you should use, they are there to provide a service to the community. If they can add to the "pressure" on this guy, then by all means take advantage of that tool. Putting him out of business is a big thing, getting bad public reports on his business practices can drive him out of business even more effectively that just loosing his Contractors License. Reputation is a big thing to Contractors.
Of course, if a lein is placed and not dealt with bad things can happen, but panicing because a procedure has begun is not an appropriate response either.
Just because the contractor is not answering his phone does not mean he's unreachable; he could be "served" with a summons by those who are skilled at tracking and finding those who are "on the lam."
I'm sure you followed the wonderful links IAAL provided and will be sure to get signed "releases" in return for any future payments you make to anyone (if it comes to that). Hopefully that expense can be postponed until you've taken this guy to court and forced him to pay (them or you). Either way ~ get those releases !!!!
So, educate your self, hire a lawyer if need be, but keep a cool head so you can respond without putting your self at more risk, financially or otherwise. It's not something to loose a whole bunch of sleep over, or do something out of anger or desparation that would hurt you more than him. All I meant by "leave it at that" was that it's just part of the dance; don't panic, just deal with it.
Foreclosure is a last resort move, and as long as the subs and suppliers know you are dealing with it, and they're kept abreast of the situation, they'll probably work with you instead of resorting to drastic measures.
But you knew that's what I meant, right OP?