Sure, just look at Arnie.

Depends.

Depends on what you mean by "big upper body." It also depends on the person.

If by "big upper body" you mean broad shoulders and muscular, then yes definitely. If a person works out their entire body there is no reason that their upper body and mid-section cannot be fit.

Or if you mean that they are flabby, it is possible also. A person could lose weight around their mid section first (although uncommon and is usually one of the last areas to lose weight) and lose the weight in their upper body last.