Stuck in recovery mode will not boot

Here is the problem:

-iPhone will not boot or turn on like its supposed to after drop

-Apple logo flashes for 1-2 seconds and screen goes black ( but phone is on)

-Phone is stuck in recovery mode

Events that lead to problem:

I dropped my phone this morning. When i picked it up the phone was off. I went inside to put it to charge for a few mins then i noticed that when i turned the phone on, the apple logo will flash for 1-2 seconds and the screen will go black. When i removed it from the charger, the phone would go completely off.

Here's what i've done:

I opened the device and noticed that the battery connector had gotten disconnected as well as the vibrator motor had came loose.

I reconnected the battery and vibrator motor and tried to start the phone. The phone still would not boot. Apple logo flashes 1-2 seconds, then screen goes black.

-i've tried replacing the battery with one that was in a working iphone. Same results

-ive tried changing the screen with a working one. Same results

-i've tried holding the home and power button. Same results

*I get "There is a problem with iphone "iphone" that requires it to be updated or restored" message when i plug the phone to itunes.

*Error 27 when i try to update the phone

Any ideas?

Could the phone have gotten wiped when it dropped and disconnected from the battery?

Is trying to restore the phone my only option?

Thanks in advance.