What is mean by Bad neighborhood ?

[cresskelly]

As we all know Google will penalize site which has links from bad neighborhood. So we can discuss 2 situation here.
1. Someone who was penalize has a link to my site.
2. Someone who was penalize has a link to my site and I have link back to him.

So from these 2 scenarios, 2nd situation is where Google penalize for bad neighbor link.

If someone has any other comments pls suggest.

[homes_kelly]

I agree with your comments. Bad neighbor situation occurs if we are link back to other party.