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The first incident involving Lot's daughters appears in Genesis 19:1-11. Two men who were really angels appeared in Sodom where Lot lived with his family. The wicked men of the city surrounded Lot'...
It should be kept in mind that the status of women at the time of Lot was extremely low. Women were the chattel, or property, of their husbands or fathers.There was no law at that time preventing a father from selling a daughter either into prostitution or to a legitimate husband. Even today the concept of the 'bridal price" continues in Islam. Since the Mosaic and Christian revelations the status of women in society has improved remarkably. The religions of Sodom and Gomorrah didn't prohibit incest and other sexual practices we consider abominable today. The daughters of Lot, raised in this era, must have absorbed enough of those religions to make incest seem acceptable to them. In fact, their offspring, Moab and Ammon, appear to have been the less repulsive replacements for Sodom and Gomorrah. One instance supporting this would be the temptation of Israelite men by Moabite women at the instigation of Balaam during the 40 years in the desert. The issue with Lot isn't what God allowed, but how much better the life of Lot would have been if he had possessed some inkling of the Mosaic commandments and thus never attempted to live a more leisurely and comfortable life in the midst of obvious perversion and degeneracy.
God always makes good come out of our evil, which demonstrates His own holiness and righteousness. Lot could only be considered righteous because of his relationship to Abraham, in a similar fashion to us being counted righteous because of Christ's nature being gifted to us. In the particular instance of the incestuous relations of Lot with his daughters, producing Moab and Ammon, one descendant of Moab was Ruth, the grandmother of King David, designated by God as "a man after his heart" (1 Samuel 13:14). David himself had struggles with bad behavior, yet through his line (by Bathsheba who had been Uriah's wife) came Joseph, the earthly father of Jesus, the Messiah. The Scripture (through this genealogy—Matthew 1:1-17; Luke 3:23-38) still recognizes Jesus as a descendant of David.
As far as Lot offering up his virgin daughters... First I believe Lot knew these two visiting men were different somehow, and possibly from all he knew of what God did in Abraham's life, he sensed they were special (even maybe) sent from God. Yes, Lot felt the need to protect them culturally, and because of his knowledge of past experience of God's workings, the need to protect them for who he may have sensed or believed they could be. (Which was later demonstrated by the attacking men being blinded so they could not find Lot's door.) This belief and proof must also have played into Lot's decision to leave his home and everything as the "visitors" instructed, or why would he have left everything? Second, the attackers were "homosexual" men looking to defile these "new" male visitors. (Fresh meat so to speak) They didn't want "virgin women" or they would have come after them at some point before this incident. Don't you think Lot would have known this, and knowing this offered up his daughters wisely "knowing" his daughters would be rejected. (As they apparently were) They remained in the house safely for their exodus the following morning. As far as the incest with his daughters, I believe Mr. Hickman was on target when he said this didn't happen overnight, and that the stigma of them coming from Sodom may have made them "unwanted" or "untouchable" to others living nearby. Thus they felt they would never be married or have offspring, so they made a poor choice and sinned with their father. Furthermore, sin and disobedience in itself is never right. Praise God that He uses our sins and failings (evil intent of Satan) to bring about His Plan for all mankind and for our Salvation.
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