Once my phone is in Lost Mode and the Activation Lock is on, what will the person who stole my phone be able to do with it? If they bring it anywhere to activate it will Apple confiscate it?

My phone was stolen and I am just curious how this Lost Mode/Activation Lock works! I know they can't get into my phone currently, and it's off. I tracked the location to an apartment complex before they shut it off, but it didn't give the apartment number, I am hoping they turn it on again soon so I can go back and play the noise, however if I can't I am hoping they will be stupid enough to try to bring it into apple and use it or bring it into verizon. Will Apple or Verizon take the phone for me and return it to me or let them walk out with it? Any background information on similar situations or any feedback would be amazing, I feel naked without my phone. 😟