This third step has to do with one of the great products of your salvation--imputed righteousness.. This imputed righteousness (that means righteousness placed on us from an outside source) involves the most uneven swap in the universe. When you get saved, you trade the rags of your sin for the robes of Christ’s righteousness. Let’s consider this trade one part at a time.

When Christ died on the cross, He took our sins upon Himself and paid for them in full. Galatians 3:13Christ hath redeemed us from the curse of the law, being made a curse for us: for it is written, Cursed is every one that hangeth on a tree:
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Christ hath redeemed us from the curse of the law, being made a curse for us: for it is written, Cursed is every one that hangeth on a tree:

2 Corinthians 5:21
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For he hath made him to be sin for us, who knew no sin; that we might be made the righteousness of God in him.

God the Father made God the Son (Jesus Christ--the One who knew no sin) to be sin for us. That is, Christ took your sins upon Himself when He died n the cross, so that you could take His righteousness upon yourself when you accept Him as Saviour. When you are saved, you are clothed in the righteousness of Christ (see 1Corinthians 1:30But of him are ye in Christ Jesus, who of God is made unto us wisdom, and righteousness, and sanctification, and redemption:
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This also means that you cannot become lost by losing your own righteousness. Though your righteousness may fail from time to time, the righteousness of Christ can never fail. In order to lose your salvation, you must get Christ to take back His righteousness, and you must take back upon yourself the sin for which He died. And so the third step is completed.