
                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549

                                      FORM 8-K

                                   CURRENT REPORT
        Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

             Date of Report (Date of earliest event reported): December 27, 2004
                             (Date of earliest event reported)


                                MORGAN STANLEY ABS CAPITAL I INC.
              (as Depositor under the Pooling and Servicing Agreement, dated
                as August 1, 2004, providing for the issuance of Mortgage
                           Pass-Through Certificates, Series 2004-NC7)
                      (Exact name of registrant as specified in charter)


                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-12                        13-3939229
          (Commission File Number)        (I.R.S. Employer Identification No.)


           1585 BROADWAY, 2ND FLOOR
           NEW YORK, NEW YORK                             10036
          (Address of principal executive offices)     (Zip Code)


          Registrant's Telephone Number, Including Area Code:  (212) 761-4000


             (Former name or former address, if changed since last report.)


     Check the appropriate box below if the Form 8-K filing is intended to
     simultaneously satisfy the filing obligation of the registrant under any
     of the following provisions (see General Instruction A.2. below):

     [  ] Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

     [  ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act
     (17 CFR 240.14a-12(b))

     [  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

     [  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))


     Item 8.01 Other Events.

     This current report on Form 8-K relates to the monthly distribution
     reported to the holders of Morgan Stanley ABS Capital I Inc. Mortgage
     Pass-Through Certificates, Series 2004-NC7, which was made on
     August 1, 2004


     Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     Exhibit No. Description

     99.1 Monthly Remittance Statement to the Certificateholders dated as of
     December 27, 2004.


                                  SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934,
    the Registrant has duly caused this report to be signed on behalf of
    the Registrant by the undersigned thereunto duly  authorized.



                                       DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                       IN ITS CAPACITY AS TRUSTEE UNDER THE
                                       POOLING AND SERVICING AGREEMENT ON
                                       BEHALF OF MORGAN STANLEY ABS CAPITAL
                                       I INC., REGISTRANT



          Date:  Dec 28, 2004               By:  /s/  Katherine M. Wannenmacher
                                            Katherine M. Wannenmacher
                                            Vice President



                                   EXHIBIT INDEX

         DOCUMENT

         99.1 Monthly Remittance Statement to the Certificateholders dated as of
              December 27, 2004.



Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

				External Parties					Table of Contents

												Page
				Seller
									1. Certificate Payment Report					2
				Morgan Stanley
									2. Collection Account Report					4

									3. Credit Enhancement Report					6
									4. Collateral Report					7
				Certificate Insurer(s)					5. Delinquency Report					10

									6. REO Report					13

									7. Foreclosure Report					14
									8. Prepayment Report					15
									9. Prepayment Detail Report					18

									10. Realized Loss Report					23
									11. Realized Loss Detail Report					26
				Servicer(s)
									12. Triggers and Adj. Cert. Report					27
				Chase Manhattan Mortgage
									13. Other Related Information					28
				New Century Mortgage Corporation

				HomeQ Servicing Corp.


				Underwriter(s)
				Morgan Stanley & Co. Inc


									Total Number of Pages					28


				Dates					Contacts

				Cut-Off Date:		August 01, 2004			Eiko Akiyama
				Close Date:		August 25, 2004			Administrator
				First Distribution Date:		September 27, 2004			(714) 247-6328

									Address:
									1761 East St. Andrew Place, Santa Ana, CA 92514
				Distribution Date:		December 27, 2004
									Factor Information:			(800) 735-7777
				Record Date:		November 30, 2004
									Main Phone Number:			(714) 247-6000

						December 24, 2004


									https://www.tss.db.com/invr






Page 1 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Certificate Payment Report
Current Period Distribution - REMIC II
					Prior											Current
	Class		Original		Principal					Total		Realized		Deferred		Principal

Class	Type	Cur	Face Value		Balance	Interest		Principal		Distribution		Loss		Interest		Balance


					(1)	(2)		(3)		(4)=(2)+(3)		(5)		(6)		(7)=(1)-(3)-(5)+(6)

A-1	FLT	$	634,982,000.00		603,387,685.27	1,291,493.18		19,838,813.03		21,130,306.21		0.00		0.00		583,548,872.24

A-2	FLT	$	185,400,000.00		166,670,677.96	331,626.18		13,114,864.74		13,446,490.92		0.00		0.00		153,555,813.22
A-3	FLT	$	66,500,000.00		66,500,000.00	142,050.52		0.00		142,050.52		0.00		0.00		66,500,000.00
A-4	FLT	$	73,500,000.00		73,500,000.00	169,661.54		0.00		169,661.54		0.00		0.00		73,500,000.00
M-1	MEZ, FLT	$	40,815,000.00		40,815,000.00	96,674.33		0.00		96,674.33		0.00		0.00		40,815,000.00
M-2	MEZ, FLT	$	39,016,000.00		39,016,000.00	94,093.08		0.00		94,093.08		0.00		0.00		39,016,000.00
M-3	MEZ, FLT	$	24,010,000.00		24,010,000.00	58,524.06		0.00		58,524.06		0.00		0.00		24,010,000.00
M-4	MEZ, FLT	$	39,016,000.00		39,016,000.00	111,899.55		0.00		111,899.55		0.00		0.00		39,016,000.00
M-5	MEZ, FLT	$	21,008,000.00		21,008,000.00	63,869.88		0.00		63,869.88		0.00		0.00		21,008,000.00
B-1	SUB, FLT	$	15,006,000.00		15,006,000.00	52,470.78		0.00		52,470.78		0.00		0.00		15,006,000.00
B-2	SUB, FLT	$	18,007,000.00		18,007,000.00	64,514.84		0.00		64,514.84		0.00		0.00		18,007,000.00
B-3	SUB, FLT	$	14,406,000.00		14,406,000.00	70,469.16		0.00		70,469.16		0.00		0.00		14,406,000.00
X	EXE	$	28,811,717.00		28,811,465.23	3,605,718.49		0.00		3,605,718.49		0.00		0.01		28,811,465.24
UT-R	R	$	0.00		0.00	0.00		0.00		0.00		0.00		0.00		0.00
P		$	0.00		0.00	526,332.17		0.00		526,332.17		0.00		0.00		0.00


Total			1,200,477,717.00		1,150,153,828.46	6,679,397.76		32,953,677.77		39,633,075.53		0.00		0.01		1,117,200,150.70





Interest Accrual Detail Current Period Factor Information per $1,000 of Original Face-
								Orig. Principal		Prior							Current

	Period		Period					(with Notional)		Principal						Total	Principal

Class	Starting		Ending		Method	Cusip		Balance		Balance		Interest		Principal		Distribution	Balance

								(1)		(1)		(2)		(3)		(4)=(2)+(3)	(5)
A-1	11/26/04		12/26/04		A-Act/360	61744CFK7		634,982,000.00		950.243763		2.033905		31.243111		33.277016	919.000652
A-2	11/26/04		12/26/04		A-Act/360	61744CFL5		185,400,000.00		898.978846		1.788706		70.738213		72.526920	828.240632
A-3	11/26/04		12/26/04		A-Act/360	61744CFM3		66,500,000.00		1,000.000000		2.136098		0.000000		2.136098	1,000.000000
A-4	11/26/04		12/26/04		A-Act/360	61744CFN1		73,500,000.00		1,000.000000		2.308320		0.000000		2.308320	1,000.000000
M-1	11/26/04		12/26/04		A-Act/360	61744CFP6		40,815,000.00		1,000.000000		2.368598		0.000000		2.368598	1,000.000000
M-2	11/26/04		12/26/04		A-Act/360	61744CFQ4		39,016,000.00		1,000.000000		2.411654		0.000000		2.411654	1,000.000000
M-3	11/26/04		12/26/04		A-Act/360	61744CFR2		24,010,000.00		1,000.000000		2.437487		0.000000		2.437487	1,000.000000
M-4	11/26/04		12/26/04		A-Act/360	61744CFS0		39,016,000.00		1,000.000000		2.868043		0.000000		2.868043	1,000.000000
M-5	11/26/04		12/26/04		A-Act/360	61744CFT8		21,008,000.00		1,000.000000		3.040265		0.000000		3.040265	1,000.000000
B-1	11/26/04		12/26/04		A-Act/360	61744CFU5		15,006,000.00		1,000.000000		3.496653		0.000000		3.496653	1,000.000000
B-2	11/26/04		12/26/04		A-Act/360	61744CFV3		18,007,000.00		1,000.000000		3.582764		0.000000		3.582764	1,000.000000
B-3	11/26/04		12/26/04		A-Act/360	61744CFW1		14,406,000.00		1,000.000000		4.891653		0.000000		4.891653	1,000.000000
X	11/26/04		12/26/04		A-Act/360			28,811,717.00		999.991262		125.147644		0.000000		125.147644	999.991262
UT-R	11/25/04		12/24/04		F-30/360			0.00		0.000000		0.000000		0.000000		0.000000	0.000000
P	11/25/04		12/24/04		F-30/360			0.00		0.000000		0.000000		0.000000		0.000000	0.000000




Page 2 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

Distribution to Date - REMIC II
																Current


	Original				Unscheduled	Scheduled		Total		Total		Realized		Deferred		Principal

Class	Face Value		Interest		Principal	Principal		Principal		Distribution		Loss		Interest		Balance
	(1)		(2)		(3)	(4)		(5)=(3)+(4)		(6)=(2)+(5)		(7)		(8)		(9)=(1)-(5)-(7)+(8)
A-1	634,982,000.00		4,685,266.90		42,394,301.82	1,758,038.74		51,433,127.76		56,118,394.66		0.00		0.00		583,548,872.24
A-2	185,400,000.00		1,221,614.83		25,415,261.52	1,045,332.75		31,844,186.78		33,065,801.61		0.00		0.00		153,555,813.22
A-3	66,500,000.00		501,436.85		0.00	0.00		0.00		501,436.85		0.00		0.00		66,500,000.00
A-4	73,500,000.00		604,853.00		0.00	0.00		0.00		604,853.00		0.00		0.00		73,500,000.00
M-1	40,815,000.00		345,719.52		0.00	0.00		0.00		345,719.52		0.00		0.00		40,815,000.00
M-2	39,016,000.00		337,200.69		0.00	0.00		0.00		337,200.69		0.00		0.00		39,016,000.00
M-3	24,010,000.00		209,990.48		0.00	0.00		0.00		209,990.48		0.00		0.00		24,010,000.00
M-4	39,016,000.00		408,426.57		0.00	0.00		0.00		408,426.57		0.00		0.00		39,016,000.00
M-5	21,008,000.00		234,387.73		0.00	0.00		0.00		234,387.73		0.00		0.00		21,008,000.00
B-1	15,006,000.00		194,817.28		0.00	0.00		0.00		194,817.28		0.00		0.00		15,006,000.00
B-2	18,007,000.00		239,980.55		0.00	0.00		0.00		239,980.55		0.00		0.00		18,007,000.00
B-3	14,406,000.00		267,413.18		0.00	0.00		0.00		267,413.18		0.00		0.00		14,406,000.00
X	28,811,717.00		15,967,800.93		-0.02	0.00		251.79		15,968,052.72		0.00		0.03		28,811,465.24
UT-R	0.00		0.00		0.00	0.00		0.00		0.00		0.00		0.00		0.00
P	0.00		1,180,551.57		0.00	0.00		0.00		1,180,551.57		0.00		0.00		0.00


Total	1,200,477,717.00		26,399,460.08		67,809,563.32	2,803,371.49		83,277,566.33		109,677,026.41		0.00		0.03		1,117,200,150.70


Interest Detail - REMIC II
	Pass		Prior Principal			Non-		Prior		Unscheduled				Paid or		Current


	Through		(with Notional)		Accrued	Supported		Unpaid		Interest		Optimal		Deferred		Unpaid

Class	Rate		Balance		Interest	Interest SF		Interest		Adjustment		Interest		Interest		Interest
					(1)	(2)		(3)		(4)		(5)=(1)-(2)+(3)+(4)		(6)		(7)=(5)-(6)
A-1	2.48563%		603,387,685.27		1,291,493.18	0.00		0.00		0.00		1,291,493.18		1,291,493.18		0.00
A-2	2.31063%		166,670,677.96		331,626.18	0.00		0.00		0.00		331,626.18		331,626.18		0.00
A-3	2.48063%		66,500,000.00		142,050.52	0.00		0.00		0.00		142,050.52		142,050.52		0.00
A-4	2.68063%		73,500,000.00		169,661.54	0.00		0.00		0.00		169,661.54		169,661.54		0.00
M-1	2.75063%		40,815,000.00		96,674.33	0.00		0.00		0.00		96,674.33		96,674.33		0.00
M-2	2.80063%		39,016,000.00		94,093.08	0.00		0.00		0.00		94,093.08		94,093.08		0.00
M-3	2.83063%		24,010,000.00		58,524.06	0.00		0.00		0.00		58,524.06		58,524.06		0.00
M-4	3.33063%		39,016,000.00		111,899.55	0.00		0.00		0.00		111,899.55		111,899.55		0.00
M-5	3.53063%		21,008,000.00		63,869.88	0.00		0.00		0.00		63,869.88		63,869.88		0.00
B-1	4.06063%		15,006,000.00		52,470.78	0.00		0.00		0.00		52,470.78		52,470.78		0.00
B-2	4.16063%		18,007,000.00		64,514.84	0.00		0.00		0.00		64,514.84		64,514.84		0.00
B-3	5.68063%		14,406,000.00		70,469.16	0.00		0.00		0.00		70,469.16		70,469.16		0.00
X	145.33402%		28,811,465.23		0.00	200.16		0.00		0.00		-200.16		3,605,718.50		0.00
UT-R	0.00000%		0.00		0.00	0.00		0.00		0.00		0.00		0.00		0.00
P	0.00000%		0.00		0.00	0.00		0.00		0.00		0.00		526,332.17		0.00


Total			1,150,153,828.46		2,547,347.10	200.16		0.00		0.00		2,547,146.94		6,679,397.77		0.00



Page 3 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Collection Account Report
SUMMARY

									Group 2		Group 1		Total
Principal Collections									13,114,819.68		19,838,744.86		32,953,564.54
Principal Withrawals									0.00		0.00		0.00
Principal Other Accounts									0.00		0.00		0.00
TOTAL NET PRINCIPAL									13,114,819.68		19,838,744.86		32,953,564.54
Interest Collections									2,126,626.38		4,082,814.32		6,209,440.70
Interest Withdrawals									-0.00		-0.00		-0.00
Interest Other Accounts									0.00		0.00		526,332.17
Interest Fees									-13,791.34		-42,470.55		-56,261.88
TOTAL NET INTEREST									2,112,835.04		4,040,343.78		6,679,510.99
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION									15,227,654.72		23,879,088.64		39,633,075.53



PRINCIPAL - COLLECTIONS

										Group 2		Group 1		Total
Scheduled Principal Received										299,511.58		621,750.01		921,261.59
Prepayments In Full										12,796,997.81		19,116,338.54		31,913,336.35
Curtailments										18,310.29		33,972.74		52,283.03
Liquidations										0.00		66,796.79		66,796.79
Insurance Principal										0.00		0.00		0.00
Repurchased Principal Amounts										0.00		0.00		0.00
Other Principal										0.00		0.00		0.00
Total Realized Loss Of Principal										-0.00		-113.22		-113.22
Delinquent Principal										-283,339.63		-554,855.65		-838,195.28
Advanced Principal										283,339.63		554,855.65		838,195.28
TOTAL PRINCIPAL COLLECTED										13,114,819.68		19,838,744.86		32,953,564.54


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS

									Group 2		Group 1		Total
Closing Deposit									0.00		0.00		0.00
TOTAL OTHER ACCOUNTS PRINCIPAL									0.00		0.00		0.00





Page 4 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

INTEREST - COLLECTIONS

									Group 2		Group 1		Total
Scheduled Interest									2,275,738.97		4,360,045.34		6,635,784.31
Liquidation Interest									0.00		467.58		467.58
Repurchased Interest									0.00		0.00		0.00
Insurance Interest									0.00		0.00		0.00
Other Interest									0.00		0.00		0.00
Relief Act Interest Shortfalls									-0.00		-200.16		-200.16
Prepayment Interest Shortfalls									-2,106.16		-717.82		-2,823.98
Compensating Interest									2,106.16		717.82		2,823.98
Delinquent Interest									-2,099,549.69		-3,815,756.22		-5,915,305.92
Interest Advanced									1,950,437.10		3,538,257.79		5,488,694.89
TOTAL INTEREST COLLECTED									2,126,626.38		4,082,814.32		6,209,440.70


INTEREST - WITHDRAWALS

									Group 2		Group 1		Total
Nonrecoverable Advances									0.00		0.00		0.00
TOTAL INTEREST WITHDRAWALS									0.00		0.00		0.00



INTEREST - OTHER ACCOUNTS

									Group 2		Group 1		Total
Prepayment Charges													526,332.17
TOTAL INTEREST OTHER ACCOUNTS									0.00		0.00		526,332.17



INTEREST - FEES

									Group 2		Group 1		Total
Current Servicing Fees									12,562.60		40,057.13		52,619.73
Current Trustee Fees									1,228.73		2,413.42		3,642.15
TOTAL INTEREST OTHER FEES									13,791.34		42,470.55		56,261.88




Page 5 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Credit Enhancement Report
ACCOUNTS

SPACE INTENTIONALLY LEFT BLANK



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES

									Group 2		Group 1		Total
Overcollateralization Amount													#######
Overcollateralization Target Amount													28,811,465.21
Overcollateralization Deficiency Amount													113.23
Overcollateralization Release Amount													0.00




Page 6 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Collateral Report


COLLATERAL



										Group 2		Group 1		Total



*Loan Count:*


Original									1,925		4,856		6,781
Prior									1,855		4,708		6,563
Prefunding									0		0		0
Scheduled Paid Offs									-0		-0		-0
Full Voluntary Prepayments									-54		-100		-154
Repurchases									-0		-0		-0
Liquidations									-0		-1		-1
Current									1,801		4,607		6,408
*Principal Balance:*


Original									406,749,507.78		793,727,250.86		1,200,476,758.64
Prior									388,020,485.91		762,133,342.52		1,150,153,828.43
Prefunding									0.00		0.00		0.00
Scheduled Principal									-299,511.58		-621,750.01		-921,261.59
Partial Prepayments									-18,310.29		-33,972.74		-52,283.03
Full Voluntary Prepayments									-12,796,997.81		-19,116,338.54		-31,913,336.35
Repurchases									-0.00		-0.00		-0.00
Liquidations									-0.00		-66,796.79		-66,796.79
Current									374,905,666.23		742,294,484.44		1,117,200,150.67





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






Page 7 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

CHARACTERISTICS

									Group 2		Group 1		Total
Weighted Average Coupon Original									7.03889%		6.87897%		6.93315%
Weighted Average Coupon Prior									7.03989%		6.87179%		6.92842%
Weighted Average Coupon Current									7.03800%		6.86575%		6.92386%
Weighted Average Months to Maturity Original									350		350		350
Weighted Average Months to Maturity Prior									348		348		348
Weighted Average Months to Maturity Current									347		347		347
Weighted Avg Remaining Amortization Term Original									350		350		350
Weighted Avg Remaining Amortization Term Prior									348		348		348
Weighted Avg Remaining Amortization Term Current									347		347		347
Weighted Average Seasoning Original									3.77		3.60		3.66
Weighted Average Seasoning Prior									5.77		5.60		5.65
Weighted Average Seasoning Current									6.76		6.59		6.65









Page 8 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

ARM CHARACTERISTICS

									Group 2		Group 1		Total
Weighted Average Margin Original									5.56578%		5.53293%		5.54384%
Weighted Average Margin Prior									5.56655%		5.53048%		5.54235%
Weighted Average Margin Current									5.56624%		5.52963%		5.54171%
Weighted Average Max Rate Original									14.15095%		13.91880%		13.99589%
Weighted Average Max Rate Prior									14.15266%		13.90934%		13.98939%
Weighted Average Max Rate Current									14.14702%		13.90264%		13.98326%
Weighted Average Min Rate Original									7.15607%		6.92725%		7.00323%
Weighted Average Min Rate Prior									7.15797%		6.91725%		6.99645%
Weighted Average Min Rate Current									7.15243%		6.91048%		6.99030%
Weighted Average Cap Up Original									1.50869%		1.49849%		1.50188%
Weighted Average Cap Up Prior									1.50903%		1.49882%		1.50218%
Weighted Average Cap Up Current									1.50920%		1.49892%		1.50231%
Weighted Average Cap Down Original									1.50869%		1.49849%		1.50188%
Weighted Average Cap Down Prior									1.50903%		1.49882%		1.50218%
Weighted Average Cap Down Current									1.50920%		1.49892%		1.50231%




SERVICING FEES & ADVANCES

										Group 2		Group 1		Total




Current Servicing Fees									12,562.60		40,057.13		52,619.73
Delinquent Servicing Fees									149,112.60		277,498.43		426,611.03
TOTAL SERVICING FEES									161,675.21		317,555.57		479,230.77


Compensating Interest									-2,106.16		-717.82		-2,823.98
Delinquent Servicing Fees									-149,112.60		-277,498.43		-426,611.03
COLLECTED SERVICING FEES									75,195.37		39,339.32		49,795.76


Aggregate Advances with respect to this Distribution									1,593,483.22		3,012,252.40		4,605,735.61





ADDITIONAL COLLATERAL INFORMATION
									Group 2		Group 1		Total
Net Prepayment Interest Shortfall									0.00		0.00		0.00
Libor For Current Period													2.1806%




Page 9 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			14,205,487.72		4,476,149.36		13,226,333.85		31,907,970.93
			% Balance			1.27%		0.40%		1.18%		2.86%
			# Loans			93		26		93		212
			% # Loans			1.45%		0.41%		1.45%		3.31%
	FORECLOSURE		Balance		0.00	0.00		194,262.35		2,212,362.64		2,406,624.99
			% Balance		0.00%	0.00%		0.02%		0.20%		0.22%
			# Loans		0	0		2		17		19
			% # Loans		0.00%	0.00%		0.03%		0.27%		0.30%
	BANKRUPTCY		Balance		2,941,463.84	565,706.01		575,145.54		274,673.50		4,356,988.89
			% Balance		0.26%	0.05%		0.05%		0.02%		0.39%
			# Loans		19	1		3		2		25
			% # Loans		0.30%	0.02%		0.05%		0.03%		0.39%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		2,941,463.84	14,771,193.73		5,245,557.25		15,713,369.99		38,671,584.81
			% Balance		0.26%	1.32%		0.47%		1.41%		3.46%
			# Loans		19	94		31		112		256
			% # Loans		0.30%	1.47%		0.48%		1.75%		4.00%









Page 10 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution


	GROUP 1
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			8,720,044.41		2,381,325.23		8,567,413.86		19,668,783.50
			% Balance			1.17%		0.32%		1.15%		2.65%
			# Loans			61		16		63		140
			% # Loans			1.32%		0.35%		1.37%		3.04%
	FORECLOSURE		Balance		0.00	0.00		194,262.35		1,690,011.55		1,884,273.90
			% Balance		0.00%	0.00%		0.03%		0.23%		0.25%
			# Loans		0	0		2		12		14
			% # Loans		0.00%	0.00%		0.04%		0.26%		0.30%
	BANKRUPTCY		Balance		1,779,419.84	0.00		452,808.96		153,559.68		2,385,788.48
			% Balance		0.24%	0.00%		0.06%		0.02%		0.32%
			# Loans		11	0		2		1		14
			% # Loans		0.24%	0.00%		0.04%		0.02%		0.30%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		1,779,419.84	8,720,044.41		3,028,396.54		10,410,985.09		23,938,845.88
			% Balance		0.24%	1.17%		0.41%		1.40%		3.22%
			# Loans		11	61		20		76		168
			% # Loans		0.24%	1.32%		0.43%		1.65%		3.65%










Page 11 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

	GROUP 2
					< 1 PAYMENT	1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance			5,485,443.31		2,094,824.13		4,658,919.99		12,239,187.43
			% Balance			1.46%		0.56%		1.24%		3.26%
			# Loans			32		10		30		72
			% # Loans			1.78%		0.56%		1.67%		4.00%
	FORECLOSURE		Balance		0.00	0.00		0.00		522,351.09		522,351.09
			% Balance		0.00%	0.00%		0.00%		0.14%		0.14%
			# Loans		0	0		0		5		5
			% # Loans		0.00%	0.00%		0.00%		0.28%		0.28%
	BANKRUPTCY		Balance		1,162,044.00	565,706.01		122,336.58		121,113.82		1,971,200.41
			% Balance		0.31%	0.15%		0.03%		0.03%		0.53%
			# Loans		8	1		1		1		11
			% # Loans		0.44%	0.06%		0.06%		0.06%		0.61%
	REO		Balance		0.00	0.00		0.00		0.00		0.00
			% Balance		0.00%	0.00%		0.00%		0.00%		0.00%
			# Loans		0	0		0		0		0
			% # Loans		0.00%	0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		1,162,044.00	6,051,149.32		2,217,160.71		5,302,384.90		14,732,738.93
			% Balance		0.31%	1.61%		0.59%		1.41%		3.93%
			# Loans		8	33		11		36		88
			% # Loans		0.44%	1.83%		0.61%		2.00%		4.89%









Page 12 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
REO Report
Loan Number			Original		Stated			Current		State &

													First
&			Principal		Principal	Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance	Date		Rate		Origination		Term		Date
1454526 1
			67,050.00		0.00	01-Dec-2004		8.400%		FL - 89.40%		360		01-Jun-2004



TOTAL			67,050.00		0.00



Page 13 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Foreclosure Report
Loan Number			Original		Stated			Current		State &

													First
&			Principal		Principal	Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance	Date		Rate		Origination		Term		Date
1403216 1
			104,000.00		103,449.43	01-Jun-2004		7.500%		MA - 80.00%		360		01-Jun-2004

1413188 1			117,750.00		117,277.46	01-Jul-2004		8.875%		MI - 75.00%		360		01-Jun-2004
1414604 1			260,000.00		258,924.15	01-Jul-2004		8.725%		NY - 100.00%		360		01-Jun-2004
1432218 1			128,000.00		127,099.54	01-Aug-2004		5.990%		CA - 80.00%		360		01-Jun-2004
1434093 1			76,415.00		76,045.11	01-Jul-2004		7.950%		NJ - 85.00%		360		01-Jun-2004
1481726 1			67,500.00		67,162.81	01-Aug-2004		7.000%		FL - 90.00%		360		01-Jul-2004
1483888 1			305,150.00		303,643.20	01-Jul-2004		7.850%		NY - 85.00%		360		01-Jun-2004
1485661 1			64,000.00		63,719.92	01-Jun-2004		8.450%		KY - 80.00%		360		01-Jun-2004
1503042 1			80,000.00		79,634.16	01-Jul-2004		7.450%		MI - 68.67%		360		01-Jul-2004
1507341 1			63,900.00		63,638.40	01-Jul-2004		8.000%		PA - 90.00%		360		01-Jul-2004
1513703 1			50,000.00		49,795.27	01-Jul-2004		8.000%		NM - 36.23%		360		01-Jul-2004
1547971 1			143,200.00		143,200.00	01-Jul-2004		6.800%		ID - 80.00%		360		01-Jul-2004
1587867 1			306,000.00		304,747.36	01-Jul-2004		8.000%		CO - 89.74%		360		01-Jul-2004
1587887 1			126,400.00		125,937.09	01-Jul-2004		8.550%		TX - 80.00%		360		01-Jul-2004
1382007 2			64,350.00		64,050.74	01-Jul-2004		8.150%		IA - 88.15%		360		01-Jun-2004
1433039 2			114,400.00		113,941.00	01-Jul-2004		8.100%		OR - 80.00%		360		01-Jul-2004
1476945 2			89,250.00		88,612.63	01-Jul-2004		5.950%		PA - 85.00%		360		01-Jun-2004
1512226 2			165,000.00		164,492.82	01-Jul-2004		9.400%		MO - 75.00%		360		01-Jul-2004
1530229 2			91,500.00		91,253.90	01-Jul-2004		10.050%		GA - 75.00%		360		01-Jul-2004
1541213 2			230,000.00		0.00	01-Dec-2004		8.625%		CA - 64.79%		360		01-Jul-2004


TOTAL			2,646,815.00		2,406,624.99



Page 14 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS


										Group 2		Group 1		Total




*Current*


Number of Paid in Full Loans									54		100		154
Number of Repurchased Loans									0		0		0
Total Number of Loans Prepaid in Full									54		100		154
Curtailments Amount									18,310.29		33,972.74		52,283.03
Paid in Full Balance									12,796,997.81		19,116,338.54		31,913,336.35
Repurchased Loans Balance									0.00		0.00		0.00
Total Prepayment Amount									12,815,308.10		19,150,311.28		31,965,619.38

*Cumulative*


Number of Paid in Full Loans									124		248		372
Number of Repurchased Loans									0		0		0
Total Number of Loans Prepaid in Full									124		248		372
Paid in Full Balance									30,494,507.63		48,506,697.85		79,001,205.48
Repurchased Loans Balance									0.00		0.00		0.00
Curtailments Amount									124,366.48		329,168.89		453,535.37
Total Prepayment Amount									30,618,874.11		48,835,866.74		79,454,740.85










Page 15 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

VOLUNTARY PREPAYMENTS RATES


										Group 2		Group 1		Total



SMM									3.31%		2.52%		2.79%
3 Months Avg SMM									2.17%		1.83%		1.94%
12 Months Avg SMM									1.94%		1.58%		1.70%
Avg SMM Since Cut-off									1.94%		1.58%		1.70%


CPR									33.19%		26.41%		28.77%
3 Months Avg CPR									23.17%		19.86%		20.99%
12 Months Avg CPR									20.97%		17.41%		18.63%
Avg CPR Since Cut-off									20.97%		17.41%		18.63%


PSA									2,455.19%		2,003.71%		2,163.75%
3 Months Avg PSA Approximation									2,008.89%		1,774.11%		1,856.14%
12 Months Avg PSA Approximation									1,990.27%		1,707.28%		1,806.51%
Avg PSA Since Cut-off Approximation									1,990.27%		1,707.28%		1,806.51%










Page 16 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution






PREPAYMENT CALCULATION METHODOLOGY

	Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases + Liquidations )/(Beg Principal Balance - Sched Principal)

	Conditional Prepayment Rate (CPR): 1-((1-SMM)^12)
	PSA Standard Prepayment Model: CPR/(0.002*min(30,WAS))

	Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn)(1-SMMn+1)...*(1-SMMm)]^(1/months in period n,m)
	Average CPR over period between the nth month and mth month (AvgCPRn,m): 1-((1-AvgSMMn,m)^12)

	Average PSA Approximation over period between the nth month and mth month: AvgCPRn,m/(0.002*Avg WASn,m))
	Average WASn,m: (min(30,WASn)+min(30,WASn+1)+...+min(30,WASm)/(number of months in the period n,m)

	Weighted Average Seasoning (WAS)

	Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments, liquidations, and repurchases.
	Dates correspond to distribution dates.




Page 17 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Prepayment Detail Report
Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

1269841 1			318,150.00		318,150.00			6.500%		CA - 90.00%		Paid Off - 360		05/01/2004

1289718 1			106,000.00		105,449.88		07-Dec-2004		7.600%		CA - 60.57%		Paid Off - 360		05/01/2004
1329449 2			94,500.00		93,885.71		14-Dec-2004		7.150%		FL - 90.00%		Paid Off - 360		04/01/2004
1331698 2			93,500.00		93,107.13		23-Nov-2004		8.650%		MI - 85.00%		Paid Off - 360		05/01/2004
1339296 1			252,000.00		250,528.45		22-Nov-2004		7.000%		NJ - 90.00%		Paid Off - 360		05/01/2004
1351963 2			382,500.00		380,393.99		19-Nov-2004		7.990%		CA - 85.00%		Paid Off - 360		04/01/2004
1359713 2			114,750.00		114,274.03		02-Dec-2004		8.713%		NM - 85.00%		Paid Off - 360		05/01/2004
1365162 1			325,000.00		325,000.00		06-Dec-2004		7.875%		NJ - 87.84%		Paid Off - 360		04/01/2004
1365543 2			135,000.00		134,091.07			6.975%		IL - 90.00%		Paid Off - 360		04/01/2004
1366952 1			146,300.00		146,278.63		30-Nov-2004		8.475%		AZ - 95.00%		Paid Off - 360		04/01/2004
1376597 1			59,300.00		58,951.92		01-Dec-2004		8.900%		WI - 49.42%		Paid Off - 360		05/01/2004
1380059 1			324,000.00		322,081.14			6.400%		CA - 90.00%		Paid Off - 360		06/01/2004
1381451 1			108,800.00		108,427.79			9.150%		CA - 85.00%		Paid Off - 360		06/01/2004
1381604 1			239,920.00		239,920.00			5.838%		NV - 80.00%		Paid Off - 360		05/01/2004
1383328 1			297,000.00		296,999.79			6.750%		CA - 90.00%		Paid Off - 360		04/01/2004
1385766 2			110,200.00		109,668.89		14-Dec-2004		8.650%		MD - 95.00%		Paid Off - 360		04/01/2004
1386053 1			156,000.00		156,000.00			5.500%		CA - 80.00%		Paid Off - 360		05/01/2004
1388668 1			224,000.00		224,000.00			6.450%		NV - 80.00%		Paid Off - 360		05/01/2004
1389177 2			220,400.00		218,941.12		30-Nov-2004		6.350%		MA - 95.00%		Paid Off - 360		05/01/2004
1399186 2			323,000.00		320,759.64		07-Dec-2004		6.350%		MD - 95.00%		Paid Off - 360		05/01/2004
1399494 2			119,000.00		118,592.92			7.970%		CA - 85.00%		Paid Off - 360		07/01/2004
1402458 1			244,000.00		242,885.39			7.450%		CA - 80.00%		Paid Off - 360		06/01/2004
1405612 2			251,000.00		249,431.44		23-Nov-2004		6.650%		NY - 86.55%		Paid Off - 360		05/01/2004
1408617 1			199,500.00		198,335.06		24-Nov-2004		7.000%		NJ - 95.00%		Paid Off - 360		05/01/2004
1409149 1			66,000.00		65,651.20		02-Dec-2004		8.950%		IA - 80.00%		Paid Off - 360		05/01/2004
1416119 2			177,840.00		176,781.13		23-Nov-2004		6.900%		HI - 90.00%		Paid Off - 360		05/01/2004
1417946 1			289,000.00		289,000.00			6.650%		CA - 85.00%		Paid Off - 360		05/01/2004
1419478 2			121,550.00		120,984.80		17-Nov-2004		8.150%		MD - 85.00%		Paid Off - 360		05/01/2004
1419822 1			104,000.00		103,155.97			5.900%		IL - 80.00%		Paid Off - 360		06/01/2004
1422253 2			165,750.00		165,271.13			8.800%		NC - 69.64%		Paid Off - 360		07/01/2004
1424290 2			78,200.00		77,858.01			7.750%		PA - 85.00%		Paid Off - 360		06/01/2004
1424546 2			205,600.00		205,600.00			6.900%		AZ - 80.00%		Paid Off - 360		05/01/2004
1424574 1			255,000.00		253,637.08			6.750%		CA - 85.00%		Paid Off - 360		05/01/2004
1426078 2			520,000.00		520,000.00			6.325%		IL - 79.39%		Paid Off - 360		06/01/2004
1427890 1			210,400.00		210,196.18			6.250%		CA - 80.00%		Paid Off - 360		05/01/2004
1430254 1			105,000.00		104,510.74			7.350%		PA - 70.00%		Paid Off - 360		06/01/2004
1435102 1			146,000.00		145,203.95		30-Nov-2004		7.350%		MD - 100.00%		Paid Off - 360		05/01/2004




Page 18 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

1436535 2			450,614.00		450,553.92			5.250%		CA - 80.00%		Paid Off - 300		05/01/2004

1438362 2			433,600.00		433,600.00			5.450%		MD - 80.00%		Paid Off - 360		05/01/2004
1439800 1			227,000.00		226,030.76			6.850%		CA - 84.07%		Paid Off - 360		07/01/2004
1440333 1			112,000.00		111,478.17			7.350%		NJ - 70.00%		Paid Off - 360		06/01/2004
1441258 1			153,900.00		153,248.33			7.850%		MI - 95.00%		Paid Off - 360		06/01/2004
1443895 1			140,500.00		139,870.74			7.550%		MI - 78.06%		Paid Off - 360		06/01/2004
1457887 1			105,000.00		104,578.70			8.100%		NJ - 58.33%		Paid Off - 360		06/01/2004
1462334 1			145,000.00		144,027.89			9.500%		CA - 35.19%		Paid Off - 360		06/01/2004
1465147 2			152,000.00		151,384.02			8.050%		MN - 80.00%		Paid Off - 360		06/01/2004
1465874 1			169,150.00		168,140.59			6.950%		CA - 85.00%		Paid Off - 360		05/01/2004
1466485 2			477,000.00		474,644.64			7.850%		CA - 90.00%		Paid Off - 360		06/01/2004
1467402 2			364,500.00		362,750.81			7.200%		NJ - 90.00%		Paid Off - 360		06/01/2004
1467831 1			230,494.00		229,040.15			5.900%		CA - 90.00%		Paid Off - 360		06/01/2004
1468304 2			209,700.00		208,435.38			6.300%		MD - 90.00%		Paid Off - 360		06/01/2004
1469513 2			286,000.00		284,858.34			8.125%		CA - 69.93%		Paid Off - 360		06/01/2004
1471182 1			228,000.00		227,066.60			8.000%		CA - 100.00%		Paid Off - 360		06/01/2004
1471870 2			420,000.00		417,724.48			6.900%		CA - 80.00%		Paid Off - 360		06/01/2004
1472085 1			168,000.00		167,956.49			5.500%		CA - 80.00%		Paid Off - 360		06/01/2004
1472130 2			333,000.00		330,753.39		07-Dec-2004		6.250%		MD - 90.00%		Paid Off - 360		05/01/2004
1473417 2			231,000.00		229,989.10			8.450%		CA - 70.00%		Paid Off - 360		05/01/2004
1474496 1			72,000.00		71,708.16			8.050%		MO - 75.79%		Paid Off - 360		06/01/2004
1480710 1			310,000.00		310,000.00			6.750%		NJ - 65.68%		Paid Off - 360		07/01/2004
1480762 1			245,000.00		244,998.23			6.750%		CA - 94.59%		Paid Off - 360		07/01/2004
1482956 2			190,000.00		188,956.15			7.650%		IL - 100.00%		Paid Off - 360		06/01/2004
1484489 2			336,000.00		334,256.64			6.800%		CA - 80.00%		Paid Off - 360		06/01/2004
1484976 1			60,800.00		60,462.43			6.450%		CA - 80.00%		Paid Off - 360		06/01/2004
1485249 2			382,500.00		381,019.43			7.350%		CA - 85.00%		Paid Off - 360		07/01/2004
1485293 1			146,000.00		145,048.00			5.600%		CA - 79.78%		Paid Off - 360		06/01/2004
1485777 1			232,000.00		230,736.88			6.588%		VA - 80.00%		Paid Off - 360		06/01/2004
1486669 1			208,000.00		207,104.31			7.750%		CA - 65.00%		Paid Off - 360		06/01/2004
1487846 1			108,000.00		107,571.03			8.150%		AZ - 89.26%		Paid Off - 360		06/01/2004
1489186 1			125,600.00		125,600.00			7.300%		IL - 80.00%		Paid Off - 360		07/01/2004
1490345 2			312,000.00		310,880.44			8.650%		CA - 80.00%		Paid Off - 360		06/01/2004
1491464 1			274,950.00		273,566.85			6.500%		CA - 65.00%		Paid Off - 360		07/01/2004
1491945 2			437,500.00		434,726.26			5.750%		CA - 68.90%		Paid Off - 360		06/01/2004
1492237 1			332,000.00		330,526.27			6.650%		CA - 80.00%		Paid Off - 360		07/01/2004
1492776 1			136,000.00		136,000.00			7.100%		CA - 80.00%		Paid Off - 360		06/01/2004
1493606 1			328,500.00		326,828.33			6.900%		NY - 90.00%		Paid Off - 360		06/01/2004




Page 19 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

1494913 1			310,000.00		309,840.73			6.150%		CA - 78.48%		Paid Off - 360		07/01/2004

1495196 1			264,000.00		262,656.61			6.900%		CA - 80.00%		Paid Off - 360		06/01/2004
1498501 1			292,500.00		291,037.42			6.990%		CA - 90.00%		Paid Off - 360		06/01/2004
1501507 1			250,400.00		249,372.87			7.990%		MD - 100.00%		Paid Off - 360		06/01/2004
1501834 2			162,000.00		161,056.69			6.200%		CA - 90.00%		Paid Off - 360		06/01/2004
1502579 1			176,625.00		176,064.85			9.250%		OR - 75.00%		Paid Off - 360		06/01/2004
1503015 1			140,000.00		139,273.57			6.800%		CA - 78.65%		Paid Off - 360		06/01/2004
1505732 1			220,000.00		219,242.27			8.850%		CA - 80.00%		Paid Off - 360		06/01/2004
1506236 1			295,200.00		295,200.00			5.125%		CA - 80.00%		Paid Off - 360		06/01/2004
1506536 2			52,200.00		51,938.92			6.990%		OH - 77.91%		Paid Off - 360		06/01/2004
1506972 1			306,000.00		303,511.87			7.650%		MA - 90.00%		Paid Off - 360		06/01/2004
1508160 2			356,000.00		356,000.00			5.300%		CA - 79.11%		Paid Off - 360		06/01/2004
1508819 2			380,000.00		378,009.17			6.750%		CA - 84.44%		Paid Off - 360		06/01/2004
1509470 1			184,000.00		184,000.00			5.950%		CA - 80.00%		Paid Off - 360		07/01/2004
1509799 2			123,750.00		123,388.72			8.750%		MD - 75.00%		Paid Off - 360		07/01/2004
1510112 2			67,200.00		67,092.49			11.600%		MI - 70.00%		Paid Off - 360		07/01/2004
1510448 1			310,000.00		309,047.56			8.500%		VA - 100.00%		Paid Off - 360		07/01/2004
1511760 2			246,500.00		245,524.59			8.450%		MI - 85.00%		Paid Off - 360		06/01/2004
1513425 1			115,000.00		112,944.46			5.000%		NY - 67.65%		Paid Off - 360		06/01/2004
1513602 1			170,000.00		169,189.87			6.650%		CA - 85.00%		Paid Off - 360		07/01/2004
1514231 2			393,500.00		392,107.25			7.800%		CA - 74.95%		Paid Off - 360		07/01/2004
1514704 1			108,000.00		107,315.28			5.750%		CA - 64.67%		Paid Off - 360		06/01/2004
1516769 2			499,500.00		497,518.27			7.225%		MN - 87.63%		Paid Off - 360		07/01/2004
1516935 1			260,000.00		258,495.75			5.250%		CA - 80.00%		Paid Off - 360		07/01/2004
1518688 1			109,444.00		109,131.01			8.850%		FL - 61.83%		Paid Off - 360		07/01/2004
1518829 1			181,600.00		181,600.00			6.450%		NV - 80.00%		Paid Off - 360		06/01/2004
1519128 1			238,500.00		237,176.05			6.450%		CA - 90.00%		Paid Off - 360		06/01/2004
1519552 1			224,000.00		222,768.38			6.500%		NJ - 79.43%		Paid Off - 360		06/01/2004
1521473 1			160,000.00		159,333.29			6.975%		NV - 89.89%		Paid Off - 360		07/01/2004
1522554 1			284,750.00		283,396.88			7.250%		CA - 85.00%		Paid Off - 360		06/01/2004
1522680 1			349,200.00		347,440.21			6.950%		NY - 90.00%		Paid Off - 360		06/01/2004
1523683 2			324,000.00		322,318.90			6.800%		CA - 90.00%		Paid Off - 360		06/01/2004
1524185 1			327,450.00		326,167.40			7.290%		CA - 59.99%		Paid Off - 360		07/01/2004
1524348 1			217,000.00		215,748.40			6.250%		CA - 43.40%		Paid Off - 360		06/01/2004
1526191 1			159,920.00		159,294.83			7.300%		WI - 80.00%		Paid Off - 360		07/01/2004
1526471 2			124,000.00		123,508.03			7.225%		NE - 67.03%		Paid Off - 360		07/01/2004
1527272 1			166,400.00		165,506.31			5.650%		IL - 80.00%		Paid Off - 360		07/01/2004
1529597 1			132,000.00		131,496.38			8.350%		IA - 80.00%		Paid Off - 360		06/01/2004




Page 20 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

1530872 1			192,000.00		191,226.93			7.150%		WA - 75.89%		Paid Off - 360		07/01/2004

1541213 2		FCL	230,000.00		229,311.21			8.625%		CA - 64.79%		Paid Off - 360		07/01/2004
1541391 1			172,000.00		171,471.53			8.500%		FL - 80.00%		Paid Off - 360		07/01/2004
1541763 1			262,350.00		261,354.41			7.450%		NY - 90.00%		Paid Off - 360		07/01/2004
1544268 1			157,000.00		2,693.03			5.875%		CA - 49.84%		Paid Off - 360		06/01/2004
1547069 2			124,200.00		124,200.00			8.100%		UT - 90.00%		Paid Off - 360		07/01/2004
1548154 1			93,600.00		93,168.18			6.450%		NE - 80.00%		Paid Off - 360		07/01/2004
1549028 1			316,000.00		314,978.50			8.250%		NV - 80.00%		Paid Off - 360		07/01/2004
1551110 2			180,000.00		179,626.14			10.375%		NY - 47.64%		Paid Off - 360		07/01/2004
1551362 2			127,500.00		127,028.21			8.350%		CA - 75.00%		Paid Off - 360		07/01/2004
1552099 1			132,000.00		131,348.81			6.100%		CA - 80.00%		Paid Off - 360		07/01/2004
1554573 1			175,200.00		174,250.22			5.600%		HI - 80.00%		Paid Off - 360		07/01/2004
1555966 1			195,500.00		194,580.53			6.350%		CA - 86.89%		Paid Off - 360		07/01/2004
1556935 1			52,700.00		52,507.40			8.600%		OH - 85.00%		Paid Off - 360		07/01/2004
1556992 1			164,500.00		163,940.67			8.000%		CA - 70.00%		Paid Off - 360		07/01/2004
1560091 1			145,000.00		143,522.65			6.600%		CA - 41.43%		Paid Off - 240		07/01/2004
1560995 2			324,000.00		322,914.95			8.075%		CA - 90.00%		Paid Off - 360		07/01/2004
1564828 1			50,000.00		49,837.38			8.450%		MI - 62.50%		Paid Off - 360		07/01/2004
1566455 2			88,000.00		87,669.34			7.500%		IA - 86.27%		Paid Off - 360		07/01/2004
1566529 1			137,000.00		136,510.56			8.325%		NV - 62.27%		Paid Off - 360		07/01/2004
1567007 2			80,750.00		80,449.55			7.550%		PA - 85.00%		Paid Off - 360		07/01/2004
1567171 1			212,000.00		211,999.97			6.350%		CA - 80.00%		Paid Off - 360		07/01/2004
1568868 1			101,500.00		101,061.46			6.800%		CA - 70.00%		Paid Off - 360		07/01/2004
1569039 1			127,000.00		126,478.49			7.050%		FL - 79.38%		Paid Off - 360		07/01/2004
1571243 1			263,250.00		262,169.03			7.050%		CA - 65.00%		Paid Off - 360		07/01/2004
1573208 1			130,000.00		129,427.43			7.100%		IL - 78.31%		Paid Off - 360		07/01/2004
1574644 2			118,300.00		117,909.74			8.150%		MI - 65.00%		Paid Off - 360		07/01/2004
1575085 2			337,500.00		337,500.00			6.850%		CA - 90.00%		Paid Off - 360		07/01/2004
1575415 1			197,100.00		196,446.51			8.125%		NM - 90.00%		Paid Off - 360		07/01/2004
1575896 2			122,400.00		121,740.37			7.990%		CA - 80.00%		Paid Off - 360		07/01/2004
1576183 1			324,000.00		322,722.03			7.600%		CA - 80.00%		Paid Off - 360		07/01/2004
1577744 1			120,150.00		119,506.47			7.500%		MI - 90.00%		Paid Off - 360		07/01/2004
1579465 2			50,000.00		49,819.40			7.700%		TX - 47.62%		Paid Off - 360		07/01/2004
1581416 1			111,200.00		110,751.18			7.200%		OH - 80.00%		Paid Off - 360		07/01/2004
1585605 1			84,780.00		84,507.31			8.275%		NC - 90.00%		Paid Off - 360		07/01/2004
1587390 1			108,000.00		106,216.80			6.600%		MN - 80.00%		Paid Off - 180		07/01/2004
1592456 1			150,450.00		149,502.51			6.100%		CA - 85.00%		Paid Off - 360		07/01/2004
1594527 1			222,760.00		222,760.00			6.600%		CA - 80.00%		Paid Off - 360		07/01/2004




Page 21 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution

Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original						Current		State &		Type Prepayment		First


&		Loan	Principal		Prepayment		Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount		Date		Rate		Origination		Original Term		Date

1598753 1			271,150.00		270,291.09			8.350%		KS - 84.75%		Paid Off - 360		07/01/2004

1613586 2			206,500.00		206,191.86			11.900%		FL - 70.00%		Paid Off - 360		07/01/2004
1627138 1			289,750.00		288,903.13			8.750%		CA - 95.00%		Paid Off - 360		07/01/2004


TOTAL			32,189,197.00		31,913,336.35



Page 22 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



										Group 2		Group 1		Total


*Current*




Number of Loans Liquidated									0		1		1
Collateral Principal Realized Loss/(Gain) Amount									0.00		113.22		113.22
Collateral Interest Realized Loss/(Gain) Amount									0.00		0.00		0.00
Net Liquidation Proceeds									0.00		66,683.57		66,683.57

*Cumulative*




Number of Loans Liquidated									0		1		1
Collateral Realized Loss/(Gain) Amount									0.00		113.22		113.22
Net Liquidation Proceeds									0.00		66,683.57		66,683.57










Page 23 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution


DEFAULT SPEEDS



										Group 2		Group 1		Total



MDR									0.00%		0.01%		0.01%
3 Months Avg MDR									0.00%		0.00%		0.00%
12 Months Avg MDR									0.00%		0.00%		0.00%
Avg MDR Since Cut-off									0.00%		0.00%		0.00%


CDR									0.00%		0.11%		0.07%
3 Months Avg CDR									0.00%		0.04%		0.02%
12 Months Avg CDR									0.00%		0.03%		0.02%
Avg CDR Since Cut-off									0.00%		0.03%		0.02%


SDA									0.00%		0.80%		0.52%
3 Months Avg SDA Approximation									0.00%		0.31%		0.21%
12 Months Avg SDA Approximation									0.00%		0.26%		0.17%
Avg SDA Since Cut-off Approximation									0.00%		0.26%		0.17%


Loss Severity Approximation for Current Period									0.00%		0.17%		0.17%
3 Months Avg Loss Severity Approximation									0.00%		0.06%		0.06%
12 Months Avg Loss Severity Approximation									0.00%		0.04%		0.04%
Avg Loss Severity Approximation Since Cut-off									0.00%		0.04%		0.04%












Page 24 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution





COLLATERAL REALIZED LOSS CALCULATION METHODOLOGY
	Monthly Default Rate (MDR): (Beg Principal Balance of Liquidated Loans)/(Total Beg Principal Balance)



	Conditional Default Rate (CDR): 1-((1-MDR)^12)

	SDA Standard Default Assumption: CDR/IF(WAS<61,MIN(30,WAS)0.02,MAX(0.03,MIN(30,WAS)0.02-0.0095*(WAS-60)))

	Average MDR over period between nth month and mth month (AvgMDRn,m): [(1-MDRn)(1-MDRn+1)...*(1-MDRm)]^(1/months in period n,m)
	Average CDR over period between the nth month and mth month (AvgCDRn,m): 1-((1-AvgMDRn,m)^12)

	Average SDA Approximation over period between the nth month and mth month:
	AvgCDRn,m/IF(Avg WASn,m<61,MIN(30,Avg WASn,m)0.02,MAX(0.03,MIN(30,Avg WASn,m)0.02-0.0095*(Avg WASn,m-60)))

	Average WASn,m: (WASn + WASn+1 +...+ WASm )/(number of months in the period n,m)
	Loss Severity Approximation for current period: sum(Realized Loss Amount)/sum(Beg Principal Balance of Liquidated Loans)

	Average Loss Severity Approximation over period between nth month and mth month: Avg(Loss Severityn,m)

	Note: Default rates are calculated since deal issue date and include realized gains and additional realized losses and gains from prior periods.
	Dates correspond to distribution dates.




Page 25 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Realized Loss Detail Report
Loan Number			Current		State &			Prior		Realized				Cumulative

&		Loan	Note		LTV at	Original		Principal		Loss/(Gain)		Realized		Realized

Loan Group		Status	Rate		Origination	Term		Balance		Revision		Loss/(Gain)		Loss/(Gain)

1454526 1
		REO	8.400%		FL - 89.40%	360		66,796.79				113.22



TOTAL								66,796.79			113.22		0.00



Page 26 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Triggers and Adj. Cert. Report
TRIGGER EVENTS

									Group 2		Group 1		Total
Trigger Event in effect (0=No , 1=Yes)													0
Stepdown Date has occurred (0 = No, 1=Yes)													0
Balances 60+ days includes Bankruptcy and Foreclosure													25,029,524.79
Class A-2 Accelerated Event Occured (0 = No, 1=Yes)													0
Ending Balance													1,117,200,150.67
Senior Enhancement Percentage													20.8800%
Class A-2 Accelerated Amortization Amount													0



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION

									Group 2		Group 1		Total
Basis Risk CarryForward Amount paid													$0.00
Basis Risk CarryForward Amount unpaid													$0.00
Excess Reserve Fund Account Balance													0.00




Page 27 of 28
Morgan Stanley ABS Capital I Inc. 2004-NC7

Mortgage Pass-Through Certificates

2004-NC7

December 27, 2004 Distribution
Other Related Information
ADDITIONAL INFORMATION

									Group 2		Group 1		Total
Current Scheduled Payments									2,575,250.55		4,981,795.35		7,557,045.90
Current Scheduled Payments 1 Month Prior									2,620,586.96		5,077,898.96		7,698,485.92
Current Scheduled Payments 2 Month Prior									2,662,650.02		5,145,326.76		7,807,976.78
Current Scheduled Payments 3 Month Prior									2,696,983.60		5,190,623.22		7,887,606.82
Current Scheduled Payments 4 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 5 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 6 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 7 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 8 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 9 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 10 Month Prior									0.00		0.00		0.00
Current Scheduled Payments 11 Month Prior									0.00		0.00		0.00
Sched. Payments for 60+Day Delinquent Loans									66,529.61		105,952.74		172,482.35
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior									20,925.17		22,938.77		43,863.94
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior									9,854.39		10,930.51		20,784.90
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior									5,296.55		3,628.36		8,924.91
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior									0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior									0.00		0.00		0.00




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Morgan Stanley ABS Capital I Inc. Trust 2004-NC7 8-K