Does God overlook sin?

Many times I feel that believers misunderstand grace to mean that I do not have to obey the laws of God. For them, I am free from the Law means that I am free from any law or least a feeling that God is not so strict as He used to be! Does God punish sin in a believer's life at all? How should we understand grace and the work of the blood? How long does grace postpone the punishment? If the sin remains unconfessed, when do the wheels of chastisement begin to move? Well, God does not overlook sin in the New Testament period and we have enough and more saints going through suffering to prove otherwise.What we also see is that most of the time the discipline comes indirectly. For most believers the conviction of sin happens immediately but the delay in repenting causes the Holy Spirit to address the issue in a myriad of ways that is open to Him. The blood of Jesus gives Him the freedom to work out our discipline in ways that would be merciful but much advantageously as well.