Verse 1

D                             G            Em
I stood in the court room. The judge turned my way
   D                 Bm                      A7
It looks like you're guilty, Now what do you say
   D                   G           Em
I spoke up, your honor, I have no defense
    D           A7           D
But that's when Mercy walked in

CHORUS

 A7                 D
Mercy walked in and pleaded my case
  A7                D            D7
Called to the stand God's saving grace
    G           Em           D          Bm
The blood was presented,that covered my sin,
   D           A7          D
Forgiven, When mercy walked in

Verse 2

D                           G         Em
I stood there and wondered, How could this be
     D          Bm                       A7
That someone so guilty had just been set free
D                          G            Em
My chains they were broken I felt born again
D           A7               D
The moment that mercy walked in

chorus

Ending
G         Em             D               Bm
The blood was presented, that covered my sin,
   D           A7            G  - D
Forgiven, when mercy walked in


(Credit to http://gospelmusic.eu5.org/h-m/mercy_walked_in.htm for the lyrics and Chords. 
I just wanted this great song to be on ultimate-guitar.com)