Factory Reset via SettingsFrom Home screen tap on "Settings" Tap on "Select Back up and Reset" Choose "Factory Data Reset" Reset all settings and delete all data on device. Enter "Reset Device". Then, select "Erase Everything".
Factory Wipe Data/Factory Reset via Recovery ModeTurn the Power off. Gently press and hold down Volume Up + Home + Power buttons simultaneously. Release all keys once the Logo appears. You will then prompted in a Android System Recovery options. Now, scroll down using Volume keys, and choose "Select Wipe Data/Factory Reset" Enter your selection using the "Power" button Select Yes — "Delete All User Data". Then, select "Reboot System Now".
Wait until the device will then completely reboots. You can repeat this process if you need to restore back your Samsung Galaxy Note 2 to its original default settings.