Martin Luther spoke of the status of believers in Christ as "Simul iustus et peccator," meaning simultaneously saints and sinners.
Those who have been saved by grace through God-given faith in Jesus Christ are simultaneously acquitted of our sin by the forgiveness God gives in Christ, yet still worthy of total condemnation and death.
That simple phrase--"simul iustus et peccator"--conveys something of the depths of a righteous and holy God for His fallen children. Over our guilty lives God is willing to spread the innocence of Jesus. We remain fallen, imperfect children while we draw breath here. Yet God makes us His own in Christ.
Amazing grace, indeed!