What a beneficial subject of study! I have enjoyed reading both of your thoughts on "the dead" living unto Christ. A thought that came to me is that when we are "in Christ" Christ is "in us." Jesus said "abide in me, and I in you." It is a living reality that Christ is in us. This is a very difficult truth for many to understand, especially since Christ cannot be everywhere at one time. He is our Brother, and as such is limited by His human body. Today, He is in the heavenly sanctuary ministering to us. He is a living Savior.
Back to "the dead in Christ." When Jesus came forth from the grave, what was it that responded to the call that came forth "Thy Father calls Thee" ? And, what is it that responds to the call that comes forth at His second coming? Those who died in Christ, had Christ in them. The dead in Christ are the only ones in the grave that will hear His voice, just as Jesus heard His Father calling to Him in the tomb. "For the Lord himself shall descend from heaven with a shout, with the voice of the archangel, and with the trump of God: and the dead in Christ shall rise first." 1 Thessalonians 4:16.
A little more light, speaking of those who were brought forth at the time of the crucifixion of Christ: "The voice that cried from the cross, "It is finished," was heard among the dead. It pierced the walls of sepulchers, and summoned the sleepers to arise. Thus will it be when the voice of Christ shall be heard from heaven. That voice will penetrate the graves and unbar the tombs, and the dead in Christ shall arise. At the Saviour's resurrection a few graves were opened, but at His second coming all the precious dead shall hear His voice, and shall come forth to glorious, immortal life. The same power that raised Christ from the dead will raise His church, and glorify it with Him, above all principalities, above all powers, above every name that is named, not only in this world, but also in the world to come." DA 787.
The dead in Christ, are alive in Christ in the grave. They do not die. They only sleep. This may be a little confusing to many, but it ought not be to us. We know death is only a sleep for both the wicked and the righteous. When we become partakers of the divine nature, the Spirit indwells the heart. This does not stop when the righteous are laid to rest. They are Christ's. We don't understand how this can be, the living dead, but we know it to be true. Jesus said so as recorded in the book of John:
11:11 These things said he: and after that he saith unto them, Our friend Lazarus sleepeth; but I go, that I may awake him out of sleep.
11:12 Then said his disciples, Lord, if he sleep, he shall do well.
11:13 Howbeit Jesus spake of his death: but they thought that he had spoken of taking of rest in sleep.
11:14 Then said Jesus unto them plainly, Lazarus is dead.
Some without discernment may think because we believe we are partakers of God's divine nature we are as gods. Such a mistake! We are not just like Jesus, who is God. Neither is Jesus just like us, no matter who or how many may teach this. We are evil by nature and will retain sinful flesh until the second coming. It is through the Spirit that we are empowered to reflect the character of Christ. It is through the Spirit that Jesus abides in us. It is the Spirit that cleanses the heart. As hard as it is to believe that one may be cleansed of all sin, in the heart, this is what happens at the moment an entire surrender is made to Christ.
"Come now, and let us reason together, saith the LORD: though your sins be as scarlet, they shall be as white as snow; though they be red like crimson, they shall be as wool." Isaiah 1:18.
"If we walk in the light, as he is in the light, we have fellowship one with another, and the blood of Jesus Christ his Son cleanseth us from all sin....If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness." 1 John 1:7,9.
I like the truth you and Pastor Sean have shared. What our character is at death, is what we have when we come forth from the grave. Our relationship does not change when we go to sleep in the grave. The holy Spirit will be falling in latter rain power, but those who are not abiding in Christ, and Christ abiding in them, through the Spirit, will not know the latter rain is falling. So it is in the grave. The wicked not possessing Christ will not hear the call to come forth at His second coming.
Jesus did not perceive Lazarus to be dead, but only asleep. He had to correct His statement so the deceived disciples would understand his sleep was not the normal sleep. But, God looks upon the end result. At His soon coming, the dead in Christ will come forth bearing the character of Christ and without sinful flesh.
"This condition, which is anticipated in His purpose, He beholds as if it were already existing. The dead live unto Him."
This is the best I can see, Jim. Hope this helps to clarify the statement. If I err, I am surely open to correction.