All you questions can be answered at the website "realestate abc.com (http://www.realestateabc.com/homeguide/reo.htm). REO (Real Estate Owned). The bank or mortgage company takes back a property after an unsuccessful foreclosure auction.
Tim Moore is correct on this one - if seller instructs the seller's agent that they refuse to see offers below a certain amount - everything in writing of course. Otherwise - all offers must be submitted.