An amazing start to an amazing chapter.
The word "condemnation" is a legal term that means "punishment." What Paul is saying is that although we ARE guilty of our sins before God, there is no punishment because of what Christ has done for us.
Before we know Christ, we sin in our daily lives and stand to be punished by death, because "the wages of sin" is death. We live a lifestyle that leads to death in the end, and sadly enough, eternal death.
Once we become a child of God, things really change. When as Christians we sin, and we need to confess that sin and be changed so we can overcome temptation, but we do not need to be fearful of punishment for that sin.
We may be guilty of our sins, but the punishment for our sins has already been placed upon Jesus on the cross, and we have been forgiven.
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