That no one is or can be godly under the Law terrifies consciences, but the consolation of the Gospel is the promise of Christ...

The New Testament keeps and urges this office of the Law, as St. Paul does when he says, "The wrath of God is revealed from heaven against all ungodliness and unrighteousness of men" (Romans 1:18). Also, "the whole world may be accountable to God ... No human being will be justified in His sight" (Romans 3:19-20).  And, Christ says, the Holy Spirit will convict the world of sin.

This is God's thunderbolt.  By the Law He strikes down both obvious sinners and false saints.  He declares no one to be in the right, but drives them all together to terror and despair.  This is the hammer.  As Jeremiah says,  "Is not My word like ... a hammer that breaks the rock in pieces?" (23:29).  This is not active contrition or manufactured repentance.  It is passive contrition, true sorrow of heart, suffering, and the sensation of death.

This is what true repentance means.  Here a person needs to hear something like this, "You are all of no account, whether you are obvious sinners or saints (in your own opinions).  You have to become different from what you are now.  You have to act differently than you are now acting, whether you are as great, wise, powerful, and holy as you can be.  Here no one is godly."

But to this office of the Law, the New Testament immediately adds the consoling promise of grace through the Gospel.  This must be believed.  As Christ declares, "Repent and believe in the gospel" (Mark 1:15).  That is become different, act differently, and believe My promise.  John the Baptist (preceding Christ) is called a preacher of repentance, but this is for the forgiveness of sins.  That is, John was to accuse all and convict them of being sinners.  This is so they can know what they are before God and acknowledge that they are lost.  So they can be prepared for the Lord to receive grace and to expect and accept from Him the forgiveness of sins.  This is what Christ Himself says, "Repentance and forgiveness of sins should be proclaimed in [My] name to all nations" (Luke 24:47).
~BOC, SA, III, III, 1-6

All Scripture, including the doctrine of election, is written for us, not to be driven to despair, but to have hope...

This eternal election or ordination of God to eternal life must not be considered in God's secret, mysterious counsel in a simple-minded way.  It is not as though election included nothing further, or nothing more belonged to it, or nothing more were to be considered in it, that that God foresaw who and how many were to be saved and who and how many were to be damned.  Nor should we think that He only held a sort of military muster, such as, "This one shall be saved, that one shall be damned; this one shall remain steadfast in faith to the end, that one shall not remain steadfast."

From this notion many get and imagine strange, dangerous, and deadly thoughts.  These cause and strengthen either self-confidence and lack of repentance or hopelessness and despair.  So people fall into troublesome thoughts, and say, "Before the foundation of the world was laid" (Ephesians 1:4), God has foreknown His elect to salvation.  And God's foreknowledge cannot fail or be hindered or changed by anyone.  In view of this, if I am elected to salvation, nothing can hurt me, even if I perform all sorts of shameful sins without repentance, have no regard for the Word and Sacraments, concern myself neither with repentance, faith, prayer, or godliness.  I will and must still be saved, because God's foreknowledge must come to pass. If, however, I am not foreknown, nothing helps me anyway, even though I busy myself with the Word, repent, believe, and so on.  For I cannot hinder or change God's foreknowledge."

In fact, even when godly hearts have repentance, faith, and good intentions to live by God's grace in a godly way, thoughts like these arise:  "If you are not foreknown from eternity to salvation, your every effort and entire labor is no help."  This happens especially when they see their weakness and the examples of those who have not persevered, but have fallen away again.

Against this false delusion and thought we should set up the following clear argument, which is sure and cannot fail:  All Scripture is inspired by God.  It is not for self-confidence and lack of repentance, but "for reproof, for correction, and for training in righteousness" (2 Timothy 3:16).  Also, everything in God's Word has been written for us, not so that we should be driven to despair by it, but so that "through the encouragement of Scriptures we might have hope" (Romans 15:4).  Therefore, there is no question that lack of repentance or despair should not in any way be caused or strengthened by the sound sense or right use of this teaching about God's eternal foreknowledge.  The Scriptures teach this doctrine only to direct us to the Word to encourage repentance and godliness, and to strengthen faith and assure us of our salvation.
~BOC, FSD, XI, 9-12

Forgiveness comes through grace, without any work, merit, or worthiness of ours preceding, present, or following...

We believe, teach, and confess what our righteousness before God is this:  God forgives our sins out of pure grace, without any work, merit, or worthiness of ours preceding, present, or following.  He presents and credits to us the righteousness of Christ's obedience.  Because of this righteousness, we are received into grace by God and regarded as righteous.

We believe, teach, and confess that faith alone is the means and instrument through which we lay hold of Christ.  So in Christ we lay hold of that righteousness that benefits us before God, for whose sake this faith is credited to us for righteousness.

We believe, teach and confess that this faith is not a bare knowledge of Christ' history, but it is God's gift.  By this gift we come to the right knowledge of Christ as our Redeemer in the Word of the Gospel. And we trust in Him that for the sake of His obedience alone we have--by grace--the forgiveness of sins and are regarded as holy and righteous before God the Father and are eternally saved.
~BOC, FE, III, 4-6

None is righteous, not one as all are lost apart from Christ...

Now some did not believe themselves guilty of actual sins in thought, word, and deeds.  I, and people like me in monasteries and religious communities, wanted to be monks and priests.  We fought against evil thought by doing such things as fasting, staying awake, praying, saying Mass, wearing coarse garments, and sleeping on hard beds.  In total sincerity and with great effort, we wanted to be holy.  Yet the heredity, inborn evil sometimes came out in sleep, as happens (St. Augustine and St. Jerome, among others, also confess this).  Still, each one held the other in high esteem.  According to our teaching, some monks were regarded as holy, without sin, and full of good works.  Also, since we had more good works that we needed to get to heaven, we could communicate and sell our good works to others.  This is actually true.  Seals, letters, and examples are at hand to prove that this happened.

These holy ones did not need repentance.  What would they repent of, since they had not indulged their wicked thoughts?  What would they confess about words they never said?  What should they render satisfaction for, since they were so guiltless that they could even sell their extra righteousness to poor sinners?  In the time of Christ, the Pharisees and scribes were these kinds of saints.

But here comes the fiery anger of St John, the true preacher of repentance.  With one bolt of lightning, he hurls together both those selling and those buying works.  He says:"Repent!" (Matthew 3:2).

John says, "Repent, both of you. You also penitents and false saints, both of you need the forgiveness of sins.  Neither of you know what sin really is.  Much less your duty to repent of it and shun it.  For no one of you is good.  You are full of unbelief, stupidity, and ignorance of God and God's will.  But He is present here, of whose "fullness we have all received, grace upon grace" (John 1:16).  Without Him, no one can be righteous before God.  Therefore, if you want to repent, repent rightly.  Your works of penance will accomplish nothing.  As for you hypocrites, who do not need repentance, you serpents' brood, who has assured you that you will escape the wrath to come and other judgments?" (Matthew 3:7; Luke 3:7).

In the same way Paul also preaches, "None is righteous, no, not one; no one understands; no one seeks for God.  All have turned aside; together they have become worthless; no one does good, not even one" (Romans 3:10-12).  And God now "commands all people everywhere to repent" (Acts 17:30).  "All people," He says. No one is an exception who is a human being.  This repentance teaches us to discern sin:  We are completely lost; there is nothing good in us from head to foot; and we must become absolutely new and different people.
~BOC, SA, III, III, 28-35

The Holy Spirit brings to us the treasures of forgiveness, sonship, and inheritance of eternal life...

We unanimously believe, teach, and confess the following about the righteousness of faith before God, in accordance with the comprehensive summary of our faith and confession presented above.  A poor sinful person is justified before God, that is, absolved and declared free and exempt from all his sins and from the sentence of well-deserved condemnation, and is adopted into sonship and inheritance of eternal life, without any preceding, present, or subsequent works, out of pure grace, because of the sole merit, complete obedience, bitter suffering, death, and resurrection of our Lord Jesus Christ alone. His obedience is credited to us for righteousness.

These treasures are brought to us by the Holy Spirit in the promise of the Holy Gospel.  Faith alone is the only means through which we lay hold on, accept, apply, and take them for ourselves.  This faith is God's gift, by which we truly learn to know Christ, our Redeemer, in the Word of the Gospel and trust in Him.  We trust that for the sake of His obedience alone we have the forgiveness of sins by grace, are regarded as godly and righteousness by God the Father, and are eternally saved.
~BOC, FSD, III, 9-11

The Gospel promise gives troubled hearts sure consolation...

Troubled hearts should have a firm, sure consolation.  Also, due honor should be given to Christ's merit and God's grace.  Therefore, the Scriptures teach that the righteousness of faith before God stands only in the gracious reconciliation or the forgiveness of sins, which is presented to us out of pure grace, only for the sake of the merit of Mediator, Christ.  This is received through faith alone in the Gospel promise.
~BOC, FSD, III, 30

Christian righteousness is the faith that believes that sins are freely forgiven for Christ's sake...

Not only the people, but also those teaching in the churches, have generally been persuaded to believe in making distinctions between meats, and similar human traditions.  They believe these are useful works for meriting grace and are able to make satisfaction for sins.  From this there developed that new ceremonies, new orders, new holy days, and new fastings were instituted daily.  Teachers in the Church required these works as a necessary service to merit grace.  They greatly terrified people's consciences when they left any of these things out.  Because of this viewpoint, the Church has suffered great damage.

First, the chief part of the Gospel--the doctrine of grace and of the righteousness of faith--has been obscured by this view.  The Gospel should stand out as the most prominent teaching in the Church, in order that Christ's merit may be well known and faith, which believes that sins are forgiven for Christ's sake, be exalted far above works.  Therefore, Paul also lays the greatest stress on this article, putting aside the Law and human traditions, in order to show that Christian righteousness is something other than such works.  Christian righteousness is the faith that believes that sins are freely forgiven for Christ's sake.  But this doctrine of Paul has been almost completely smothered by traditions, which have produced the opinion that we must merit grace and righteousness by making distinctions in meats and similar services.  When repentance was taught, there was no mention made of faith.  Only works of satisfaction were set forth.  And so repentance seemed to stand entirely on these works.
~BOC, AC, XXVI, 1-7

Human nature drives us to look more upon ourselves than upon Christ's Word and lips...

But whoever would gladly receive grace and comfort should drive himself and allow no one to frighten him away [from the Lord's Supper].  Say, "I, indeed, would like to be worthy.  But I come, not upon any worthiness, but upon Your Word, because You have commanded it.  I come as one who would gladly be Your disciple, no matter what becomes of my worthiness."  This is difficult.  We always have this obstacles and hindrance to encounter:  we look more upon ourselves than upon Christ's Word and lips.  For human nature desires to action in such a way that it can stand and rest firmly on itself.  Otherwise, it refuses to approach [the altar for the Lord's Supper].
~BOC, LC, V, 62-63

God commands us to pray because He desires that we call upon Him...

Indeed, the human heart is by nature so hopeless that it always flees from God and imagines that He does not wish or desire our prayer, because we are sinners and have earned nothing but wrath.  Against such thoughts, we should always remember this commandment and turn to God, so that we may not stir up His anger more by such disobedience.  For by this commandment God lets us plainly understand that He will not cast us away from Him or chase us away.  This is true even though we are sinners.  But instead He draws us to Himself, so that we might humble ourselves before Him, bewail this misery and plight of ours and pray for grace and help.
~BOC, LC, III, 10-11

Reason never satisfies the Law...

Yet the adversaries do not give up on Christ completely.  They require a knowledge of the history about Christ.  They credit Him by writing that from His merit a way of life is given to us or, as they say, "first grace" (prima gratia).  They understand this as a habit, inclining us to love God more readily.  Yet, what they credit to this habit is of little importance.  For they imagine that the human will's acts are the same before and after this habit.  They imagine that the will can love God; but, nevertheless, this habits stimulates it to love more cheerfully.  They tell us, "First, merit this habit by your earlier merits."  Then they tell us we should merit an increase of this habit and life eternal by the works of the Law.  In this way they bury Christ, so that people may not benefit from Him as a Mediator and believe that they freely receive forgiveness of sins and reconciliation for His sake.  They let people dream that by their own fulfillment of the Law, they merit forgiveness of sins, that by their own fulfillment of the Law, they are counted righteous before God.  However, the Law is never satisfied since reason does nothing except certain civil works.  In the meantime, a person neither fears God nor truly believes that God cares.  Although they speak about this habit, God's love cannot exist in a person without the righteousness of faith, nor can His love be understood.
~BOC, AP, IV (II), 17-18

Christ's obedience is credited to us for righteousness...

Therefore, the righteousness that is credited to faith or to the believer out of pure Grace is Christ's obedience, suffering, and resurrection, since He has made satisfaction for us to the Law and paid for our sins.  Christ is not man alone, but God and man in one undivided person,  Therefore, He was hardly subject to the Law (because He was Lord of the Law), just as He didn't have to suffer and die for His own sake.  For this reason, then, His obedience (nor only in His suffering and dying, but also because He was voluntarily made under the Law in our place and fulfilled the Law by this obedience) is credited to us for righteousness. So, because of this complete obedience, which He rendered to His heavenly Father for us by doing and suffering and in living and dying, God forgives our sins.  He regards us as godly and righteous, and He eternally saves us.  This righteousness is brought to us by the Holy Spirit through the Gospel and in the Sacraments. It is applied, taken, and received through faith.  Therefore, believers have reconciliation with God, forgiveness of sins, God's grace, sonship, and are heirs of eternal life.
~BOC, FSD, III, 14-16

Righteousness not found in self-chosen practices and acts of worship...

Paul teaches everywhere that righteousness is not to be sought in self-chosen practices and acts of worship, devised by people. Righteousness comes by faith to those who believe that they are received by God into grace for Christ's sake.
~BOC, AC, XXVII, 37

Only through the Word...

In issues related to the spoken, outward Word, we must firmly hold that God grants His Spirit or grace to no one except through or with the preceding outward Word. This protects us from enthusiasts (i.e., souls who boast that they have the Spirit without and before the Word). They judge Scripture or the spoken Word and explain and stretch it at their pleasure, as Munzer did. Many still do this today, wanting to be sharp judges between the Spirit and the letter and yet they do not know what they are saying.
~BOC, SA, III, VIII, 3

The error of believing in only a first grace...

...Christ does not stop being our Mediator after we have been renewed. They err who image that He has merited only a first grace, and that, afterward, we please God and merit eternal life by our fulfilling of the Law. Christ remains Mediator, and we should always be confident that for His sake we have a reconciled God, even though we are unworthy.
~BOC, AP, V (III), 41-42

Christ is always our Mediator with God...

In the third place, Christ does not stop being our Mediator after we have been renewed. They err who imagine that He has merited only a first grace, and that, afterward, we please God and merit eternal life by our fulfilling of the Law.
~BOC, AP, V (III), 41

The Holy Spirit carries on His Work without ceasing...

God's grace is secured through Christ, and sanctification is wrought by the Holy Spirit through God's Word in the unity of the Christian Church. Yet because of our flesh, which we bear with us, we are never without sin.   Everything, therefore, in the Christian Church is ordered toward this goal: we shall daily receive in the Church nothing but the forgiveness of sin through the Word and signs, to comfort and encourage our consciences as long as we live here. So even though we have sins, the grace of the Holy Spirit does not allow them to harm us.  For we are in the Christian Church, where there is nothing but continuous, uninterrupted forgiveness of sins....For we have already received creation. Redemption, too, is finished. But the Holy Spirit carries on His work without ceasing to the Last Day.
~BOC, LC,  II, 54-55,61

Though we still battle flesh, the entire person and works is declared righteous and holy through faith...

I do not know how to change in the least what I have previously and constantly taught about justification. Namely, that through faith, as St. Peter says, we have a new and clean heart, and God will and does account us entirely righteous and holy for the sake of Christ, our Mediator. Although sin in the flesh has not yet been completely removed or become dead yet He will not punish or remember it....The entire individual, both his person and his works, is declared to be righteous and holy from pure grace and mercy, shed upon us and spread over us in Christ.
~BOC, SA, III, XIII, 1-2

The entire individual is declared righteous and holy...

What is still sinful or imperfect in them will not be counted as sin or defect, for Christ's sake.  The entire individual, both his person and his works, is declared to be righteous and holy from pure grace and mercy, shed upon us and spread over us in Christ.
~BOC, SA, III, XIII, 2-3

The Holy Spirit brings us Christ's grace...

Therefore, Luther wanted to make clear how great the consequences of original sin are and how weak human beings are as a result.  So, he taught that these remnants of original sin (after Baptism) are not, by nature, unimportant, but that we need Christ's grace so that they are not counted against us as sin.  And to put them to death [mortify them], we need the Holy Spirit.
~BOC, AP, II (I), 45

God is superabundantly generous in His grace...

We will now return to the Gospel, which does not give us counsel and aid against sin in only one way. God is superabundantly generous in His grace: First, through the spoken Word, by which the forgiveness of sins is preached in the whole world. This is the particular office of the Gospel. Second, through Baptism. Third, through the holy Sacrament of the Altar. Fourth through the Power of the Keys. Also through the mutual conversation and consolation of bretheran, "Where two or three are gathered" (Matthew 18:20) and other such verses (especially Romans 1:12).
~BOC, SA, III, IV