Of course they were born again. If not, then they were still dead in their sin. To be born again is to be made spiritually alive.
Ephesians 2:1
As for you, you were dead in your transgressions and sins,
A. The Gnostic and Jewish emphasis on human works-oriented salvation is depreciated by Paul's emphasis on
1. God's election in Eph. 1:3-14
2. God's wisdom, knowledge and revelation, Eph. 1:15-23
3. God's initiating grace in Eph. 2:1-10
4. the mystery of God's redemptive plan hidden from the ages (i.e., Jew and Gentile now are one in Christ) in Eph. 2:11-3:13
Paul emphasizes the four things in which humans have no part! Salvation is all of God (cf. Eph. 1:3-14; 2:4-7), but individuals must personally respond (cf. Eph. 2:8-9) and live in light of the New Covenant (Eph. 2:10).
B. There are three enemies of fallen humanity delineated in Eph. 2:2-3 (cf. James 4:1,4,7):
1. the fallen world system, Eph. 2:2
2. the angelic adversary, Satan, Eph. 2:2
3. mankind's fallen nature (Adamic nature), Eph. 2:3
Verses 1-3 show the hopelessness and helplessness of fallen mankind apart from and in rebellion to God (cf. Rom. 1:18-2:16).
C. As Eph. 2:1-3 describe the pitiable state of humanity, Eph. 2:4-6 contrast the riches of God's love and mercy for fallen mankind. Human sin is bad, but God's love and mercy are greater (cf. Rom. 5:20)! What God did for Christ (cf. Eph. 1:20), Christ has now done for believers (cf. Eph. 2:5-6).
D. There is real tension in the New Testament between the free grace of God and human effort. This tension can be expressed in paradoxical pairs:
1. indicative (a statement) and imperative (a command);
2. grace/faith objective (the content of the gospel) and subjective (one's experience of the gospel);
3. won the race (in Christ) and now run the race (for Christ).
This tension is clearly seen in Eph. 2:8-9, which emphasizes grace, while Eph. 2:10 emphasizes good works. It is not an either/or but a both/and theological proposition. However, grace always comes first and is the foundation of a Christlike lifestyle. Verses 8-10 are a classical summary of the paradox of the Christian gospel-free, but it costs everything! Faith and works (cf. James 2:14-26)!
E. A new topic is introduced in Eph. 2:11-3:13. It is the mystery, hidden from the beginning, that God desires the redemption of all mankind, Jew (cf. Ezek. 18:23,32) and Gentile (cf. 1 Tim. 2:4; Titus 2:11; 2 Pet. 3:9), through personal faith in the substitutionary atonement of the Messiah. This universal offer of salvation was predicted in Gen. 3:15 and 12:3. This radically free forgiveness (cf. Rom. 5:12-21) shocked the Jews and all religious elitists (Gnostic false teachers, Judaizers) and all modern "works-righteousness" proponents.