1200 calories forever???

In the event of hitting a plateau usually the most effective way is to INCREASE your calories for a couple days, then put it back down.
Once you get closer to a weight you're comfortable with gradually increase your calories(maybe 1400 for a few weeks, then 1500..) until you get to your maintenance calorie level.

personally i think the best way to lose it to vary your calories. never eat just 1200 every single day. Your metabolism will slow and adjust to that amount. If you have 1-2 higher days a week it keeps it up and running. I just try to eat between 1200-1500 a day. Some days it will be a little less and others maybe a bit more. If i were exercising like i should be i would have lost more weight by now.

Now this is just my opinion and what works for me.

1200 is the absolute lowest that MFP will calculate for you and it includes a calorie deficit to make you lose weight with or without exercise. For me, 1200 calories is not sustainable. I eat 1470 per day at 5'4" and I have about 10 lbs to go. I have lost 25 lbs eating between 1200 and 1500 calories per day. So if you have trouble sticking to 1200 you can adjust your deficit by changing your goal to 1 lb or even .5 lbs loss per week and you'll get more calories. You also get more calories if you exercise. Many people, myself included, find that losing slower is more sustainable for the long term since it allows you to eat more.

As far as maintaining, once you reach your goal you go back into your settings and set MFP to maintenance calories and it will raise your goal so you're no longer eating at a deficit. You should neither gain nor lose while eating maintenance, but I find that MFP sets mine too high so I can't actually eat what it thinks I should be able to for my height. Instead I manually change my goal when I'm maintaining and just up the calories by 100 or 200 until I reach a place where I'm maintaining.

Remember it's a marathon, not a sprint, so make changes that you can maintain for the long haul. If you do decide to stay at 1200 try to make sure you're eating as much unprocessed, whole food as you can. At that low of a number you really have to plan your day well so you won't be hungry all the time. Also drink plenty of water to stay hydrated and feeling full.

I got 1200 at 2lb loss a week when I started, recently changed it to 1 lb a week and still got 1200!

Before at 2 lb a week I only got 50 extra calories when upped Ito lightly active so only got 1250 and 1200 at sedentary!

My BMR is only just over 1300 now so I'm not getting a 500 cal deficit with these numbers. I just stay mostly low carb and allow a few treat meals a week and exercise on the days I have treats. This has been working for me without counting every cal and still allowing fav treats.

Trying to fix something that seems like a misunderstanding:
You do realise that you're not supposed to calculate your calorie deficit using your BMR, right? The BMR is what you burn when you sleep all day. You don't sleep all day. I'm like, 59 kg and pretty sedentary, but I still burn around 1800-1900 calories a day as a default, without exercising, which is like 500 calories more than my BMR.
You calculate the calorie deficit like this:
(Maintenance level calories + exercise calories) - (calories eaten)

thanks everyone. I really am trying to do this slow and steady. I think MFP says I should lose 1.6 lbs a week. I set it with 4 days of exercise at 30 min each. (something I KNOW i can stick to long haul) I've lost 5 so far over 3 weeks however 2.8 of it was 1 week and that week I didn't fit in any exercise so that was extremely odd to me. Any idea how that happened? I really don't want to lose to quickly because I don't want to gain it all back! I want to do this the right way once and for all.

As long as you are eating at a deficit, you should lose weight. Exercise is good for you for many reasons, and you should exercise, but it is definitely possible to lose without it.

You would not be at the same number of calories when maintaining as when losing. If you stayed at the same number you would keep losing...

Intake an amount of calories that will work for you. From reading your post, it sounds like you are not comfortable with 1200. If this doesn't work, I highly recomment trying 1500 or something that is doable but still lose weight. If you make it horrible, it may never work.

You don't have to eat 1200 to lose weight.