With the new security measures introduced with iOS 7 to make your phone safer from would-be thieves, you must turn off Find My iPhone before you can restore your device.
The only option you have at this point is to sign into Find My iPhone via the Find My iPhone app on another iOS device, or via iCloud.com on a computer.
You would then need to wipe your phone from there in order to be able to restore it.
Currently Being ModeratedOct 7, 2013 1:35 PM (in response to gail from maine)
gail from maine, I have a question for you, I have an iPhone 5 & my exboyfriend took it and reset it & Now that I have my phone back its telling me that the phone was reported lost & its asking for the apple ID that erased it. Which I dont have, What can I do?! PLEASE HELP! Thanks.