Tamara Forsyth answered...

We are all saved by grace no matter how we have lived our life, as long as we believe in Christ and believe that he is our Savior. Most Christian religions believe that this is all there is to being saved. Mormons believe this for the part of being saved in which the body of flesh is reunited with the spirit. For this part of being saved, yes, Mormons believe that all people, no matter how they have lived their lives, will be saved and have their body reunited with their spirit at the resurrection through the grace of God. However, Mormons also believe there is another part to Christ's atonement and being saved, and that refers to his taking on of our sins. To be saved from our sins, and take upon us the name of Christ such that his atonement will wash away our sins and we will have everlasting life in God's presence, we must repent of our sins. After we have done all that we can do, then the grace of God will wash away our sins because of Christ's atoning sacrifice on our behalf.