What is the physical condition of the property (is it nearing obsolescence; are there major systems due for renewal, etc)?

I am a general contractor and am familiar with the physical aspects of home improvements.

Any signs of water damage?

It's a red flag that they don't have credit to protect, so harder to recover damages at move out, but often work out fine.

I bought a house that had hidden, but major termite damage.  

The bacteria produces a gas that smells like S, & it can certainly damage the resin bed in an ion exchange unit or produce a black slime that builds up inside the unit.

Found the subfloor had water damage under the toilet...went ahead and replaced the subfloor and added tile (very good price.)

A badly damaged property may have to be razed, which has a cost.

The damage could be in thousands.

Just because a contractor files a lien does not mean they are correct and damages can be awarded for the filing of an improper lien.Edward, get your contract out and identify the clauses relating to this specific issue, then take that to the bank and demand that they not release any funds but abide by the contract terms.