Who his own self bare our sins in his own body on the tree, that we, being dead to sins, should live unto righteousness. (I Peter 2:24)
Jesus Christ did not only bear the judgment for sin – He died – but He also bore sin itself. This was a supernatural identification wherein the entire Adam race was gathered together in Jesus Christ – and thus, His death on the Cross was the death of the Adam race. When we come to Christ and are joined to Him, we are by faith taking our place in that His finished death, and as a result, we are raised in Him a new creature.
You will notice that the Bible never says that sin is obliterated. It never says the sin is dead. It says that we are dead to sin. Sin is still present as a possibility in our natural man. But because we are raised as a creature who is alive in Christ, we don’t have to obey it. Sanctification is the process wherein we learn how to live out this Truth.