Activation lock help
Can you reset the phone back to factory setting if phone is locked to Owner?
Earlier iPhone models
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No. All that will do is activation lock it. If you aren't the original owner you would need to get in touch with that person and have them go to iCloud.com/find and click on the drop down "show all devices", then click on the device, remove.
If you are the owner you need the proof of purchase then you can request activation lock removal:
How to remove Activation Lock - Apple Support