Do I have standing to sue the bank for my money?

I am presently in pre-foreclosure with my bank as I am process of loan remodification. Last month when my garage got flooded I sought and found a service provider for clean up. I paid out-of-pocket and submitted claim to flood insurance carrier. Check was issue payable to myself and bank and sent to bank. Bank is withholding my reimbursement funds due to status of loan.