Maintaining at 1200

I started logging my calories just to see how much I eat so I can start losing some weight.

But I found out that I only eat 1000-1200 a day, no restrictions, not starving ect and I'm maintaining my weight. I don't lose or gain, but I do fluctuate a pound or 2.

I know that eating anything below 1200 sets your body to 'starvation mode'. So how am I suppose to lose if I maintain at 1200?

If I exercise and burn say 500 calories, my NET would only be 500-700 calories a day, isn't that unhealthy? MFP app would tell me to eat my burnt calories (as in it adds to my remaining uneaten cals), should I?

I am 20, 5'2 and 143lb. Please helppp