How to bypass a icloud lock on a iphone with ios 7

Starting with iOS 7, deleting an iCloud account or restoring a device requires Find My iPhone to be disabled. Find My iPhone, in turn, requires the user to enter the password for the Apple ID attached to the iCloud account. This system ensures that phone thieves can't remove the account and avoid being tracked through the Find My iPhone website.
Unfortunately, there's a pretty easy way to bypass this requirement, as demonstrated in the video above. To do so, you first need to tap both "delete account" and the switch to disable Find My iPhone at the same time in the iCloud settings panel. That's actually the hardest part of the entire process. When prompted for a password, hold down the power button and shut down the phone.

When you restart the phone, you'll be able to go into the iCloud settings panel and remove the account without being prompted for your password. After that you can plug the phone into iTunes and restore it with no problem. Not only that, but because Activation Lock requires Find My iPhone to be enabled, that feature won't kick in after the phone is restored.
In short, whoever has your phone has just bypassed every possible method you had at your disposal to locate it again. The good news? Putting a passcode on your phone (especially with a short timer) prevents anyone from getting into the iCloud settings at all.

From the Apple Support site ...

Use restore your device as new or from a backup.

1. Disconnect all cables from your device.
2. Turn off your device.
3. Press and hold the Home button. While holding the Home button, connect your device to iTunes. If your device doesn't turn on automatically, turn it on.
4. Continue holding the Home button until you see the Connect to iTunes screen.
5. iTunes will alert you that it has detected a device in recovery mode.
6. Click OK, then restore the device.

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If the iPhone has IOS 7 ...
When setting up an iPhone for first time use ... or resetting to factory settings ... if the phone display indicates that the phone is locked with another Apple ID you will need that password there is no way to get around that...you need that password....if you have the apple ID (email address) of the previous owner, it is suggested to try and contact that person and ask them to delete the device from their iCloud account ... www.iCloud.find.com