The term hyper-grace has been used to describe a new wave of teaching that emphasizes the grace of God to the exclusion of other vital teachings such as repentance and confession of sin.
The conclusion of hyper-grace teaching is that we are not bound by Jesus’ teaching, even as we are not under the Law; that believers are not responsible for their sin; and that anyone who disagrees is a pharisaical legalist.
Jesus’ words to the seven churches in the book of Revelation strongly contradict the idea that Christians never need to repent.
To the church at Ephesus, Jesus said, “Consider how far you have fallen! Repent and do the things you did at first. If you do not repent, I will come to you and remove your lampstand from its place” (Revelation 2:4).
Jesus rebukes five of the seven churches and demands repentance from them (Revelation 2:4,6,20; Revelation 3:3,15-19). Far from believers being unaccountable for their sin, they must answer to Jesus for their disobedience (see also 2 Corinthians 5:10).
But is this true?
In Mark 13:31, Jesus said, “Heaven and earth will pass away, but my words will never pass away.” Before Jesus ascended into heaven, He promised that the Father would send the Holy Spirit who “will teach you all things and will remind you of everything I have said to you” (John 14:26).
If Jesus’ words are no longer applicable to believers, why would we need to be reminded of them?
For example, it is true that Christians have been forgiven by God.
But that doesn’t mean we never have to confess our sin. James 5:16 says, “Confess your sins to each other and pray for each other so that you may be healed.” If we are to confess our sins to each other, why would we not need to confess them to God, since every sin is ultimately a sin against God (Psalm 51:4)?
Also, 1 John 1:9 gives clear instruction to believers about confessing sin.2)http://www.gotquestions.org/Christian-sin.html
It begins with the word if:
“If we confess our sin, He is faithful and just to forgive our sin and to cleanse us from all unrighteousness.” This is a cause/effect statement implying that we cannot have the second without the first.
As blood-bought children of God, we do not continue to confess our sin in order to be saved from hell. We confess and repent in order to reestablish an intimate relationship with our Father. We are “positionally righteous” but “practically sinful.”
However, 1 John 2:1 begins with this:
“My dear children, I write this to you so that you will not sin. But if anybody does sin, we have an advocate with the Father—Jesus Christ, the Righteous One.” John is clearly writing to believers whom he personally knew. He indicates that his believing friends may indeed sin, and that, when they do, they need to confess it.
Mature Christians should recognize this fallacy right away. Every disciple of Christ has felt the overwhelming conviction of the Holy Spirit when he or she has sinned. Jesus calls the Holy Spirit “the Spirit of Truth” (John 15:26).
Truth, by its very definition, will not tolerate anything false.
When the Spirit of Truth abides in a believing heart (1 Corinthians 6:19), He brings conviction about anything that is not truth.
In summary, much of what the hyper-grace preachers teach is valid.
We are indeed saved by grace, not our works (Ephesians 2:8–9). And God’s grace is marvelous, great, and free (1 Timothy 1:14).
The two are in delicate balance, and a tip to either side can result in a false gospel.
We must always compare any new teaching with the “whole counsel of God” and learn to disregard anything that veers even slightly from the truth (1 John 4:1).
Source: gotquestions.org "What is hyper-grace?"
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