When I had a client whose mortgage lender failed to properly file its mortgage, I proposed that the home be sold to satisfy the creditors, while claiming the homestead exemption for the debtors. It ended up being a 100% payment plan as the mortgage lender did not file a proof of claim, and my clients got about $30k when all was said and done.
It sounds as though you listed the debt in your bankruptcy case, but due to an error on the part of the original creditor (bank) that the debt is now an "unsecured debt" rather than a "secured debt". Though a Chapter 13 will discharge the unsecured debt, it is possible that your plan proposes to pay some percentage to the unsecured creditors. If due to the banks error the home is now "free and clear" that may significantly increase the amount that would need to be distributed to your unsecured creditors in the Chapter 13 plan.