Actually, I am saying there is a sense of both. I do not think that we can take apart salvation into mini-standalone doctrines (although some try). We can examine God's work of grace (this "transformation" or "re-creation") many ways. It is a reconciliation as we are reconciled through Christ to God. It is redemption as we are purchased with the precious blood of Christ. It is sanctification as we are to be a people holy to God. It is regeneration as we are re-created beings. It is justification as we are justified, in Christ, through faith. We are both made and declared righteous just as we are both made and commanded to be holy (1 Pet. 1).Thanks for trying to clarify your view. When God puts us positionally into Christ, we undergo the Circumcision of Christ where our sin burden (whatever our God had or would have held against us) is continually removed. Thus we are "justified in Christ" if that was what you were saying. We are made perfect, not declared perfect. And to be perfect is to be faultless and thus righteous.
No flesh is justified by the Law. But we are justified through faith. All this means is if God credits our faith in Christ as righteousness, then He puts us positionally into Christ where we undergo the washing of regeneration and are thus justified "through faith."
I don't know that this righteous is to "perfect" (depending on if you are speaking of moral perfection), but instead I think it is a covenantal righteousness (perfect, to include moral perfection, is inherent and assumed of God; but here I think we are looking at what makes us "right" in terms of God's covenant with Abraham...and that is by faith). I agree that this does not have the Law in sight.