Here's my deal. I know and understand to my very core what it means to be found. In spite of attending church my whole life (except for during the four years I attended a Christian college), I pretty much ignored God. The great thing is that He continued to pursue me until one day it all changed and I knew that I had been found.
Having the benefit of hindsight, I know that I was lost before that moment, but I would have never characterized myself that way. In fact, I might have laughed at the term, maybe even been offended. So why is it that we churchy people refer to others as lost? Having an "insiders" perspective, I know it's meant in love, but it may not be received in love. In fact, it could be a barrier to someone even hearing us. I hate barriers.
I continue to cringe every time I hear the word "lost", but have never been able to offer a satisfactory alternative name. Then I ran across this post and now I think I have my answer - the people Jesus loved.