Fender Strat Neck/Fret Problem Need Help!

Hi....
I have a 1994 Fender Foto Flame Strat...Trouble is, When I try to play a note on the D-G B strings on the 12th fret, I am getting a bad fret out beyond the 12th fret only...If I play the same strings one fret above the 12th...I have no troubles bending or just playing....
I am a solo/melody lead guitarist. So, I would like my string action/ht to be as close as I can get to the fretboard!

I am not afraid to work on guitars to make it right...Please help out with some suggestion for me to try...Just got this Strat and I can't really cut loose on it this way..Want to play it bad! lol

Thanks in advance for any help!