👉 Preimpairment is a term used in the field of finance to describe an event or situation that occurs before the actual sale of a financial instrument, such as a mortgage or bond. It refers to a period of time during which the investor has significant control over the asset or loan and can make decisions regarding its disposition. In other words, preimpairment is the initial stage in the financing process where an investor's financial situation is still under review by creditors and regulators before the actual sale of