That’s the Lutheran paradigm in a nutshell. The Catholic paradigm is quite different. The fundamental problem in man, in Catholic soteriology, is the absence of sanctifying grace. Here at this point is a crucial distinction between Catholic and Protestant soteriology. In Protestant theology grace is primarily understood as divine favor, that is, an attitude or stance by God toward us. In Catholic soteriology, by contrast, grace is not merely divine favor, but is also and primarily the gift of “participation in the divine nature” 2 Peter 1:4 by which we have the supernatural virtues of faith, hope, and agape.
via A Reply from a Romery Person – Called to Communion.
I found this post very helpful at Called to Communion, those guys really get it.