yes

No its a crime for which you can go to jail.

In an absolute auction, the highest bid wins the item or real estate, there is no minimum bid requirement. In a confirmation auction the highest bid has to be confirmed/approved by the owner or bank, sometimes also referred to as a reserve price.

There is no reserve--whatever the high bid is--it sells for that amount.

Yes you can. BUT the bank/mortgage company will enter a bid equalling what is owed against the property.