In 2012 Google's updated "Penguin" algorithm targeted websites with unnatural links. Many website owners were hit unfairly hard by this algorithm -- not because they broke sacred webmaster rules and artificially built their own link kingdoms, but because spammy, low ranking websites linked to them without their knowledge or permission. Brick Marketing just published a short "how to" article on what to do if you had a lot of bad, spammy inbound links to your website. (Hint: don't freak out, take action.) What To Do If You Have Bad Inbound Links.
Google is a powerful beast -- robot crawlers are constantly out there scouring the web -- including your site. It takes time -- sometimes months and months for Google to reindex smaller websites and decide what to do with them post any algorithm change. So if you are baffled by a sudden drop in search engine results there are really only two possible explanations: you are doing something wrong, or, your competition is suddenly doing something better.
More About Google Algorithms

Hola! I’ve been reading your site for some time now and finally got the courage to go ahead and give you a shout out from Lubbock Texas! Just wanted to mention keep up the fantastic job!
And a shout out back to Texas — from Los Angeles!