                                    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): July 25, 2005
                             (Date of earliest event reported)


                                MORGAN STANLEY ABS CAPITAL I INC.
             (as Depositor under the Pooling and Servicing Agreement, dated as
                  May 1, 2005, providing for the issuance of Morgan Stanley
              Home Equity Loan Trust, Mortgage Pass-Through Certificates
                                      Series 2005-2)
                      (Exact name of registrant as specified in charter)


                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-121914-02                        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 Home Equity Loan Trust,
     Mortgage Pass-Through Certificates Series 2005-2, which was made on
     May 1, 2005


     Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     Exhibit No. Description

     99.1 Monthly Remittance Statement to the Certificateholders dated as of
     July 25, 2005.


                                  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:  Jul 27, 2005               By:  /s/  Katherine M. Wannenmacher
                                            Katherine M. Wannenmacher
                                            Vice President



                                   EXHIBIT INDEX

         DOCUMENT

         99.1 Monthly Remittance Statement to the Certificateholders dated as of
              July 25, 2005.



Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

				External Parties						Table of Contents

													Page
				Seller									Page
				Seller						1. Certificate Payment Report					2
				Morgan Stanley						1. Certificate Payment Report					2
				Morgan Stanley						2. Collection Account Report					4
										2. Collection Account Report					4
										3. Credit Enhancement Report					6
										4. Collateral Report					7
				Certificate Insurer(s)						5. Delinquency Report					10
				Certificate Insurer(s)						5. Delinquency Report					10
										6. REO Report					13

										7. Foreclosure Report					14
										8. Prepayment Report					15
										9. Prepayment Detail Report					18
										9. Prepayment Detail Report					18
										10. Realized Loss Report					21
										11. Realized Loss Detail Report					24
				Servicer(s)						11. Realized Loss Detail Report					24
				Servicer(s)						12. Triggers and Adj. Cert. Report					25
				J. P. Morgan						12. Triggers and Adj. Cert. Report					25
				J. P. Morgan						13. Other Related Information					26
				HomeQ Servicing Corp.						13. Other Related Information					26
				HomeQ Servicing Corp.
				Countrywide Home Loans Srvc LP


				Underwriter(s)
				Morgan Stanley
				Blaylock & Partners, L.P.
				Utendahl Capital Partners, L.P.

										Total Number of Pages					26
										Total Number of Pages

				Dates						Contacts

				Cut-Off Date:			May 01, 2005			Marion Hogan
				Close Date:			May 26, 2005			Administrator
				First Distribution Date:			June 27, 2005			(714) 247-6282
										marion.c.hogan@db.com
										marion.c.hogan@db.com
										Address:
										1761 East St. Andrew Place, Santa Ana, CA 92705
				Distribution Date:			July 25, 2005
										Factor Information:			(800) 735-7777
				Record Date:			June 30, 2005			Factor Information:			(800) 735-7777
										Main Phone Number:			(714) 247-6000

							July 22, 2005
							July 22, 2005

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

				Note: Although Countrywide has revised the May and June distribution
				delinquency data,the statements will not be revised.




Page 1 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Certificate Payment Report
Current Period Distribution - REMIC II
					Prior												Current
	Class		Original		Principal						Total		Realized		Deferred		Principal
	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-1ss	SR	$	209,431,000.00		205,226,384.87		564,957.68		4,436,148.45		5,001,106.13		0.00		0.00		200,790,236.42
A-1ss	SR	$	209,431,000.00		205,226,384.87		564,957.68		4,436,148.45		5,001,106.13		0.00		0.00		200,790,236.42
A-1mz	SR	$	52,358,000.00		51,306,841.20		142,636.78		1,109,042.41		1,251,679.19		0.00		0.00		50,197,798.79
A-2a	SR	$	288,963,000.00		282,805,058.07		748,825.69		13,649,819.01		14,398,644.70		0.00		0.00		269,155,239.06
A-2b	SR	$	100,000,000.00		100,000,000.00		274,896.22		0.00		274,896.22		0.00		0.00		100,000,000.00
A-2c	SR	$	80,000,000.00		80,000,000.00		226,139.20		0.00		226,139.20		0.00		0.00		80,000,000.00
M-1	MEZ,FLT	$	35,366,000.00		35,366,000.00		102,446.11		0.00		102,446.11		0.00		0.00		35,366,000.00
M-2	MEZ,FLT	$	25,721,000.00		25,721,000.00		74,907.15		0.00		74,907.15		0.00		0.00		25,721,000.00
M-3	MEZ,FLT	$	17,913,000.00		17,913,000.00		52,446.60		0.00		52,446.60		0.00		0.00		17,913,000.00
M-4	MEZ,FLT	$	16,535,000.00		16,535,000.00		50,726.92		0.00		50,726.92		0.00		0.00		16,535,000.00
M-5	MEZ,FLT	$	14,698,000.00		14,698,000.00		45,434.23		0.00		45,434.23		0.00		0.00		14,698,000.00
M-6	MEZ,FLT	$	14,698,000.00		14,698,000.00		46,005.82		0.00		46,005.82		0.00		0.00		14,698,000.00
B-1	SUB, FLT, S	$	12,400,000.00		12,400,000.00		43,538.69		0.00		43,538.69		0.00		0.00		12,400,000.00
B-2	SUB, FLT, S	$	11,942,000.00		11,942,000.00		42,673.62		0.00		42,673.62		0.00		0.00		11,942,000.00
B-3	SUB, FLT, S	$	10,105,000.00		10,105,000.00		39,174.46		0.00		39,174.46		0.00		0.00		10,105,000.00
X	EXE/WAC	$	28,477,345.00		28,476,827.70		2,647,262.46		0.00		2,647,262.46		0.00		0.00		28,476,827.70
P	NOF/EXE	$	0.00		0.00		447,292.17		0.00		447,292.17		0.00		0.00		0.00
R	RES/EXE	$	0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00

Total			918,607,345.00		907,193,111.84		5,549,363.80		19,195,009.87		24,744,373.67		0.00		0.00		887,998,101.97
Total




Interest Accrual Detail Current Period Factor Information per $1,000 of Original Face-
									Orig. Principal		Prior							Current
									Orig. Principal		Prior							Current
	Period		Period						(with Notional)		Principal						Total	Principal
	Period		Period
Class	Starting		Ending		Method		Cusip		Balance		Balance		Interest		Principal		Distribution	Balance

									(1)		(1)		(2)		(3)		(4)=(2)+(3)	(5)
A-1ss	06/27/05		07/24/05		A-Act/360		61744CQV1		209,431,000.00		979.923626		2.697584		21.181909		23.879493	958.741716
A-1mz	06/27/05		07/24/05		A-Act/360		61744CQU3		52,358,000.00		979.923626		2.724260		21.181909		23.906169	958.741716
A-2a	06/27/05		07/24/05		A-Act/360		61744CQG4		288,963,000.00		978.689514		2.591424		47.237255		49.828679	931.452259
A-2b	06/27/05		07/24/05		A-Act/360		61744CQH2		100,000,000.00		1,000.000000		2.748962		0.000000		2.748962	1,000.000000
A-2c	06/27/05		07/24/05		A-Act/360		61744CQJ8		80,000,000.00		1,000.000000		2.826740		0.000000		2.826740	1,000.000000
M-1	06/27/05		07/24/05		A-Act/360		61744CQK5		35,366,000.00		1,000.000000		2.896740		0.000000		2.896740	1,000.000000
M-2	06/27/05		07/24/05		A-Act/360		61744CQL3		25,721,000.00		1,000.000000		2.912295		0.000000		2.912295	1,000.000000
M-3	06/27/05		07/24/05		A-Act/360		61744CQM1		17,913,000.00		1,000.000000		2.927851		0.000000		2.927851	1,000.000000
M-4	06/27/05		07/24/05		A-Act/360		61744CQN9		16,535,000.00		1,000.000000		3.067851		0.000000		3.067851	1,000.000000
M-5	06/27/05		07/24/05		A-Act/360		61744CQP4		14,698,000.00		1,000.000000		3.091185		0.000000		3.091185	1,000.000000
M-6	06/27/05		07/24/05		A-Act/360		61744CQQ2		14,698,000.00		1,000.000000		3.130073		0.000000		3.130073	1,000.000000
B-1	06/27/05		07/24/05		A-Act/360		61744CQR0		12,400,000.00		1,000.000000		3.511185		0.000000		3.511185	1,000.000000
B-2	06/27/05		07/24/05		A-Act/360		61744CQS8		11,942,000.00		1,000.000000		3.573406		0.000000		3.573406	1,000.000000
B-3	06/27/05		07/24/05		A-Act/360		61744CQT6		10,105,000.00		1,000.000000		3.876740		0.000000		3.876740	1,000.000000
X	06/27/05		07/24/05				28,477,345.00		999.981835		92.960297		0.000000		92.960297		999.981835
P	06/27/05		07/24/05				0.00		0.000000		0.000000		0.000000		0.000000		0.000000
R	06/27/05		07/24/05				0.00		0.000000		0.000000		0.000000		0.000000		0.000000



Page 2 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 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-1ss	209,431,000.00		1,182,081.03		8,365,712.69		275,050.89		8,640,763.58		9,822,844.61		0.00		0.00		200,790,236.42
A-1mz	52,358,000.00		298,547.27		2,091,438.16		68,763.05		2,160,201.21		2,458,748.48		0.00		0.00		50,197,798.79
A-2a	288,963,000.00		1,565,627.77		19,235,202.85		572,558.09		19,807,760.94		21,373,388.71		0.00		0.00		269,155,239.06
A-2b	100,000,000.00		569,118.44		0.00		0.00		0.00		569,118.44		0.00		0.00		100,000,000.00
A-2c	80,000,000.00		468,628.09		0.00		0.00		0.00		468,628.09		0.00		0.00		80,000,000.00
M-1	35,366,000.00		212,473.67		0.00		0.00		0.00		212,473.67		0.00		0.00		35,366,000.00
M-2	25,721,000.00		155,385.30		0.00		0.00		0.00		155,385.30		0.00		0.00		25,721,000.00
M-3	17,913,000.00		108,812.84		0.00		0.00		0.00		108,812.84		0.00		0.00		17,913,000.00
M-4	16,535,000.00		105,402.65		0.00		0.00		0.00		105,402.65		0.00		0.00		16,535,000.00
M-5	14,698,000.00		94,427.56		0.00		0.00		0.00		94,427.56		0.00		0.00		14,698,000.00
M-6	14,698,000.00		95,652.40		0.00		0.00		0.00		95,652.40		0.00		0.00		14,698,000.00
B-1	12,400,000.00		90,824.02		0.00		0.00		0.00		90,824.02		0.00		0.00		12,400,000.00
B-2	11,942,000.00		89,061.66		0.00		0.00		0.00		89,061.66		0.00		0.00		11,942,000.00
B-3	10,105,000.00		81,929.84		0.00		0.00		0.00		81,929.84		0.00		0.00		10,105,000.00
X	28,477,345.00		5,151,591.64		496.42		20.89		517.30		5,152,108.94		0.00		0.00		28,476,827.70
P	0.00		678,327.80		0.00		0.00		0.00		678,327.80		0.00		0.00		0.00
R	0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00

Total	918,607,345.00		10,947,891.98		29,692,850.12		916,392.92		30,609,243.03		41,557,135.01		0.00		0.00		887,998,101.97


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

	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-1ss	3.53938%		205,226,384.87		564,957.68		0.00		0.00		0.00		564,957.68		564,957.68		0.00
A-1mz	3.57438%		51,306,841.20		142,636.78		0.00		0.00		0.00		142,636.78		142,636.78		0.00
A-2a	3.40438%		282,805,058.07		748,825.69		0.00		0.00		0.00		748,825.69		748,825.69		0.00
A-2b	3.53438%		100,000,000.00		274,896.22		0.00		0.00		0.00		274,896.22		274,896.22		0.00
A-2c	3.63438%		80,000,000.00		226,139.20		0.00		0.00		0.00		226,139.20		226,139.20		0.00
M-1	3.72438%		35,366,000.00		102,446.11		0.00		0.00		0.00		102,446.11		102,446.11		0.00
M-2	3.74438%		25,721,000.00		74,907.15		0.00		0.00		0.00		74,907.15		74,907.15		0.00
M-3	3.76438%		17,913,000.00		52,446.60		0.00		0.00		0.00		52,446.60		52,446.60		0.00
M-4	3.94438%		16,535,000.00		50,726.92		0.00		0.00		0.00		50,726.92		50,726.92		0.00
M-5	3.97438%		14,698,000.00		45,434.23		0.00		0.00		0.00		45,434.23		45,434.23		0.00
M-6	4.02438%		14,698,000.00		46,005.82		0.00		0.00		0.00		46,005.82		46,005.82		0.00
B-1	4.51438%		12,400,000.00		43,538.69		0.00		0.00		0.00		43,538.69		43,538.69		0.00
B-2	4.59438%		11,942,000.00		42,673.62		0.00		0.00		0.00		42,673.62		42,673.62		0.00
B-3	4.98438%		10,105,000.00		39,174.46		0.00		0.00		0.00		39,174.46		39,174.46		0.00
X	119.52255%		28,476,827.70		0.00		0.00		0.00		0.00		0.00		2,647,262.46		0.00
P	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		447,292.17		0.00
R	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00

Total			907,193,111.84		2,454,809.17		0.00		0.00		0.00		2,454,809.17		5,549,363.80		0.00



Page 3 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Collection Account Report
SUMMARY
SUMMARY
										Group 2		Group 1		Total
Principal Collections										13,649,819.01		5,545,190.86		19,195,009.87
Principal Withrawals										0.00		0.00		0.00
Principal Other Accounts										0.00		0.00		0.00
TOTAL NET PRINCIPAL										13,649,819.01		5,545,190.86		19,195,009.87
Interest Collections										3,275,534.34		1,887,304.42		5,162,838.76
Interest Withdrawals										-0.00		-0.00		-0.00
Interest Other Accounts										284,662.23		162,629.94		447,292.17
Interest Fees										-39,487.05		-21,280.08		-60,767.13
TOTAL NET INTEREST										3,520,709.51		2,028,654.28		5,549,363.80
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION										17,170,528.52		7,573,845.14		24,744,373.67



PRINCIPAL - COLLECTIONS
PRINCIPAL - COLLECTIONS
											Group 2		Group 1		Total
Scheduled Principal Received											265,852.97		189,623.26		455,476.23
Prepayments In Full											13,374,226.68		5,338,907.09		18,713,133.77
Curtailments											9,739.36		16,660.51		26,399.87
Liquidations											0.00		0.00		0.00
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		-0.00		-0.00
Delinquent Principal											-227,475.07		-165,222.52		-392,697.59
Advanced Principal											227,475.07		165,222.52		392,697.59
TOTAL PRINCIPAL COLLECTED											13,649,819.01		5,545,190.86		19,195,009.87


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS
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 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

INTEREST - COLLECTIONS
INTEREST - COLLECTIONS
										Group 2		Group 1		Total
Scheduled Interest										3,481,545.27		2,002,303.46		5,483,848.73
Liquidation Interest										0.00		0.00		0.00
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		-0.00		-0.00
Prepayment Interest Shortfalls										-9,719.07		-4,941.72		-14,660.79
Compensating Interest										9,719.07		4,941.72		14,660.79
Delinquent Interest										-2,955,999.74		-1,705,987.44		-4,661,987.18
Interest Advanced										2,749,988.81		1,590,988.39		4,340,977.20
TOTAL INTEREST COLLECTED										3,275,534.34		1,887,304.42		5,162,838.76


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



INTEREST - OTHER ACCOUNTS
INTEREST - OTHER ACCOUNTS
										Group 2		Group 1		Total
Prepayment Charges										284,662.23		162,629.94		447,292.17
TOTAL INTEREST OTHER ACCOUNTS										284,662.23		162,629.94		447,292.17



INTEREST - FEES
INTEREST - FEES
										Group 2		Group 1		Total
Current Servicing Fees										37,056.39		19,930.79		56,987.18
Current Trustee Fees										2,430.67		1,349.30		3,779.97
TOTAL INTEREST OTHER FEES										39,487.05		21,280.08		60,767.13




Page 5 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Credit Enhancement Report
ACCOUNTS
ACCOUNTS
										Group 2		Group 1		Total
Excess Reserve Fund Account Balance														0.00



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES
STRUCTURAL FEATURES
										Group 2		Group 1		Total
Specified Subordinated Target Amount														28,476,827.70
Subordinated Amount														28,476,827.69
Subordinated Deficiency Amount														0.00
Subordinated Release Amount														0.00




Page 6 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Collateral Report


COLLATERAL



											Group 2		Group 1		Total



Loan Count:


Original										3,029		2,893		5,922
Prior										3,002		2,855		5,857
Prefunding										0		0		0
Scheduled Paid Offs										-0		-0		-0
Full Voluntary Prepayments										-61		-31		-92
Repurchases										-0		-0		-0
Liquidations										-0		-0		-0
Current										2,941		2,824		5,765
Principal Balance:


Original										589,506,120.12		329,081,324.57		918,587,444.69
Prior										583,361,544.97		323,831,566.86		907,193,111.83
Prefunding										0.00		0.00		0.00
Scheduled Principal										-265,852.97		-189,623.26		-455,476.23
Partial Prepayments										-9,739.36		-16,660.51		-26,399.87
Full Voluntary Prepayments										-13,374,226.68		-5,338,907.09		-18,713,133.77
Repurchases										-0.00		-0.00		-0.00
Liquidations										-0.00		-0.00		-0.00
Current										569,711,725.96		318,286,376.00		887,998,101.96





PREFUNDING
PREFUNDING
										Group 2		Group 1		Total
Closing Date Deposit Amount										0.00		0.00		0.00
Total Original Principal Balance										0.00		0.00		0.00






Page 7 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

CHARACTERISTICS
CHARACTERISTICS
										Group 2		Group 1		Total
Weighted Average Coupon Original										7.16413%		7.41938%		7.25557%
Weighted Average Coupon Prior										7.16413%		7.41938%		7.25557%
Weighted Average Coupon Current										7.16169%		7.41980%		7.25382%
Weighted Average Months to Maturity Original										351		343		348
Weighted Average Months to Maturity Prior										351		343		348
Weighted Average Months to Maturity Current										350		341		347
Weighted Avg Remaining Amortization Term Original										351		343		348
Weighted Avg Remaining Amortization Term Prior										351		343		348
Weighted Avg Remaining Amortization Term Current										350		341		347
Weighted Average Seasoning Original										4.05		4.37		4.17
Weighted Average Seasoning Prior										4.05		4.37		4.17
Weighted Average Seasoning Current										5.05		5.35		5.16









Page 8 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

ARM CHARACTERISTICS
ARM CHARACTERISTICS
										Group 2		Group 1		Total
Weighted Average Margin Original										6.36639%		6.41298%		6.38286%
Weighted Average Margin Prior										6.36639%		6.41298%		6.38286%
Weighted Average Margin Current										6.36447%		6.41323%		6.38164%
Weighted Average Max Rate Original										13.80902%		13.76266%		13.79263%
Weighted Average Max Rate Prior										13.80902%		13.76266%		13.79263%
Weighted Average Max Rate Current										13.80765%		13.76285%		13.79188%
Weighted Average Min Rate Original										7.00401%		7.15877%		7.05872%
Weighted Average Min Rate Prior										7.00401%		7.15877%		7.05872%
Weighted Average Min Rate Current										7.00073%		7.15807%		7.05612%
Weighted Average Cap Up Original										1.15781%		1.24236%		1.18770%
Weighted Average Cap Up Prior										1.15781%		1.24236%		1.18770%
Weighted Average Cap Up Current										1.15768%		1.24246%		1.18753%
Weighted Average Cap Down Original										1.15781%		1.24236%		1.18770%
Weighted Average Cap Down Prior										1.15781%		1.24236%		1.18770%
Weighted Average Cap Down Current										1.15768%		1.24246%		1.18753%




SERVICING FEES & ADVANCES

											Group 2		Group 1		Total




Current Servicing Fees										37,056.39		19,930.79		56,987.18
Delinquent Servicing Fees										206,010.93		114,999.04		321,009.97
TOTAL SERVICING FEES										243,067.32		134,929.82		377,997.14


Compensating Interest										-9,719.07		-4,941.72		-14,660.79
Delinquent Servicing Fees										-206,010.93		-114,999.04		-321,009.97
COLLECTED SERVICING FEES										-27,337.31		-14,989.07		-42,326.39


Aggregate Advances with respect to this Distribution										2,977,463.88		1,756,210.92		4,733,674.80





ADDITIONAL COLLATERAL INFORMATION
										Group 2		Group 1		Total
Net Prepayment Interest Shortfall										0.00		0.00		0.00
Libor For Current Period														3.314380%
Libor For Next Period														3.460000%




Page 9 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				15,285,719.23		1,788,470.87		153,765.20		17,227,955.30
			% Balance				1.72%		0.20%		0.02%		1.94%
			# Loans				97		16		1		114
			% # Loans				1.68%		0.28%		0.02%		1.98%
	FORECLOSURE		Balance		0.00		0.00		1,756,230.92		1,328,250.68		3,084,481.60
			% Balance		0.00%		0.00%		0.20%		0.15%		0.35%
			# Loans		0		0		14		9		23
			% # Loans		0.00%		0.00%		0.24%		0.16%		0.40%
	BANKRUPTCY		Balance		1,036,739.06		383,816.17		125,433.55		80,611.74		1,626,600.52
			% Balance		0.12%		0.04%		0.01%		0.01%		0.18%
			# Loans		11		3		1		1		16
			% # Loans		0.19%		0.05%		0.02%		0.02%		0.28%
	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		1,036,739.06		15,669,535.40		3,670,135.34		1,562,627.62		21,939,037.42
			% Balance		0.12%		1.76%		0.41%		0.18%		2.47%
			# Loans		11		100		31		11		153
			% # Loans		0.19%		1.73%		0.54%		0.19%		2.65%









Page 10 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution


	GROUP 1
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				4,457,594.48		375,475.67		0.00		4,833,070.15
			% Balance				1.40%		0.12%		0.00%		1.52%
			# Loans				43		6		0		49
			% # Loans				1.52%		0.21%		0.00%		1.74%
	FORECLOSURE		Balance		0.00		0.00		699,393.79		980,108.53		1,679,502.32
			% Balance		0.00%		0.00%		0.22%		0.31%		0.53%
			# Loans		0		0		7		7		14
			% # Loans		0.00%		0.00%		0.25%		0.25%		0.50%
	BANKRUPTCY		Balance		540,535.77		383,816.17		0.00		0.00		924,351.94
			% Balance		0.17%		0.12%		0.00%		0.00%		0.29%
			# Loans		6		3		0		0		9
			% # Loans		0.21%		0.11%		0.00%		0.00%		0.32%
	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		540,535.77		4,841,410.65		1,074,869.46		980,108.53		7,436,924.41
			% Balance		0.17%		1.52%		0.34%		0.31%		2.34%
			# Loans		6		46		13		7		72
			% # Loans		0.21%		1.63%		0.46%		0.25%		2.55%










Page 11 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

	GROUP 2
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				10,828,124.75		1,412,995.20		153,765.20		12,394,885.15
			% Balance				1.90%		0.25%		0.03%		2.18%
			# Loans				54		10		1		65
			% # Loans				1.84%		0.34%		0.03%		2.21%
	FORECLOSURE		Balance		0.00		0.00		1,056,837.13		348,142.15		1,404,979.28
			% Balance		0.00%		0.00%		0.19%		0.06%		0.25%
			# Loans		0		0		7		2		9
			% # Loans		0.00%		0.00%		0.24%		0.07%		0.31%
	BANKRUPTCY		Balance		496,203.29		0.00		125,433.55		80,611.74		702,248.58
			% Balance		0.09%		0.00%		0.02%		0.01%		0.12%
			# Loans		5		0		1		1		7
			% # Loans		0.17%		0.00%		0.03%		0.03%		0.24%
	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		496,203.29		10,828,124.75		2,595,265.88		582,519.09		14,502,113.01
			% Balance		0.09%		1.90%		0.46%		0.10%		2.55%
			# Loans		5		54		18		4		81
			% # Loans		0.17%		1.84%		0.61%		0.14%		2.75%









Page 12 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 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




TOTAL


Page 13 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 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
19157692 1
19157692 1			93,750.00		93,075.66		01-Mar-2005		7.250%		FL - 75.00%		360		01-Nov-2004

322569682 1			320,000.00		317,509.82		01-Feb-2005		6.850%		CA - 80.00%		360		01-Nov-2004
322587064 1			73,600.00		72,979.41		01-Feb-2005		6.990%		AZ - 80.00%		360		01-Oct-2004
322592213 1			118,500.00		117,289.19		01-Mar-2005		6.500%		MO - 79.00%		360		01-Sep-2004
322597170 1			65,850.00		65,113.94		01-Feb-2005		6.500%		AZ - 79.97%		360		01-Aug-2004
322964438 1			70,400.00		69,983.16		01-Feb-2005		7.625%		OH - 80.00%		360		01-Dec-2004
322965336 1			63,750.00		63,444.46		01-Mar-2005		7.999%		NE - 85.00%		360		01-Jan-2005
323067082 1			85,500.00		85,214.43		01-Feb-2005		8.999%		WI - 75.00%		360		01-Feb-2005
323068114 1			74,080.00		73,801.21		01-Mar-2005		9.875%		IN - 80.00%		360		01-Feb-2005
323077248 1			90,400.00		90,020.56		01-Mar-2005		7.875%		TX - 80.00%		360		01-Feb-2005
402136342 1			153,000.00		151,830.55		01-Mar-2005		9.600%		IN - 90.00%		360		01-May-2004
409249506 1			97,750.00		97,094.47		01-Feb-2005		6.990%		OH - 85.00%		360		01-Dec-2004
410212584 1			272,631.30		272,213.30		01-Feb-2005		7.250%		CA - 80.00%		360		01-Dec-2004
411026392 1			110,500.00		109,932.16		01-Mar-2005		7.650%		WA - 85.00%		360		01-Jan-2005
19146711 2			100,000.00		99,214.35		01-Mar-2005		7.375%		NC - 80.00%		360		01-Oct-2004
322964594 2			101,900.00		101,900.00		01-Mar-2005		8.625%		OK - 94.97%		360		01-Jan-2005
323067561 2			58,500.00		58,289.46		01-Mar-2005		9.250%		IN - 90.00%		360		01-Feb-2005
323069369 2			415,200.00		413,413.13		01-Mar-2005		7.750%		MA - 80.00%		360		01-Feb-2005
409146135 2			90,000.00		89,585.67		01-Mar-2005		8.875%		MO - 90.00%		360		01-Dec-2004
412021715 2			81,600.00		81,354.34		01-Feb-2005		9.500%		MO - 85.00%		360		01-Feb-2005
412077108 2			220,000.00		219,064.46		01-Mar-2005		7.990%		NY - 67.18%		360		01-Feb-2005
412078251 2			75,650.00		75,370.06		01-Mar-2005		8.500%		ID - 85.00%		360		01-Feb-2005
412157532 2			268,000.00		266,787.81		01-Jan-2005		7.500%		CA - 80.00%		360		01-Feb-2005


TOTAL			3,100,561.30		3,084,481.60


Page 14 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS
VOLUNTARY PREPAYMENTS

											Group 2		Group 1		Total




Current


Number of Paid in Full Loans										61		31		92
Number of Repurchased Loans										0		0		0
Total Number of Loans Prepaid in Full										61		31		92
Curtailments Amount										9,739.36		16,660.51		26,399.87
Paid in Full Balance										13,374,226.68		5,338,907.09		18,713,133.77
Repurchased Loans Balance										0.00		0.00		0.00
Total Prepayment Amount										13,383,966.04		5,355,567.60		18,739,533.64

Cumulative


Number of Paid in Full Loans										88		69		157
Number of Repurchased Loans										0		0		0
Total Number of Loans Prepaid in Full										88		69		157
Paid in Full Balance										19,210,929.81		10,372,847.96		29,583,777.77
Repurchased Loans Balance										0.00		0.00		0.00
Curtailments Amount										47,659.32		41,512.72		89,172.04
Total Prepayment Amount										19,258,589.13		10,414,360.68		29,672,949.81










Page 15 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

VOLUNTARY PREPAYMENTS RATES
VOLUNTARY PREPAYMENTS RATES

											Group 2		Group 1		Total



SMM										2.30%		1.65%		2.07%
3 Months Avg SMM										1.65%		1.60%		1.63%
12 Months Avg SMM										1.65%		1.60%		1.63%
Avg SMM Since Cut-off										1.65%		1.60%		1.63%


CPR										24.32%		18.15%		22.17%
3 Months Avg CPR										18.08%		17.56%		17.90%
12 Months Avg CPR										18.08%		17.56%		17.90%
Avg CPR Since Cut-off										18.08%		17.56%		17.90%


PSA										2,408.48%		1,694.73%		2,148.77%
3 Months Avg PSA Approximation										1,986.85%		1,806.26%		1,919.51%
12 Months Avg PSA Approximation										1,986.85%		1,806.26%		1,919.51%
Avg PSA Since Cut-off Approximation										1,986.85%		1,806.26%		1,919.51%










Page 16 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 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/(0.002min(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) Conditional Prepayment Rate (CPR): 1-((1-SMM)^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) Dates correspond to distribution dates. Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments, liquidations, and repurchases.













Page 17 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Prepayment Detail Report
Prepayment Detail Report - Mortgage Loans Prepaid in Full During Current Distribution
Loan Number			Original							Current		State &		Type Prepayment		First
Loan Number			Original							Current		State &		Type Prepayment

&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

19641430 2			366,000.00		364,201.78			22-Jun-2005		7.875%		CA - 75.00%		Paid Off - 360		01-Dec-2004
			366,000.00

19642008 2			134,000.00		133,331.26			21-Jun-2005		7.000%		IL - 83.39%		Paid Off - 360		01-Jan-2005
19642008 2					133,331.26			21-Jun-2005		7.000%		IL - 83.39%		Paid Off - 360		01-Jan-2005
19642016 2			108,900.00		108,431.15			22-Jun-2005		7.750%		FL - 90.00%		Paid Off - 360		01-Jan-2005
19642016 2					108,431.15			22-Jun-2005		7.750%		FL - 90.00%		Paid Off - 360		01-Jan-2005
19642586 2			410,400.00		410,400.00			21-Jun-2005		5.875%		CA - 79.69%		Paid Off - 360		01-Feb-2005
19642586 2					410,400.00			21-Jun-2005		5.875%		CA - 79.69%		Paid Off - 360		01-Feb-2005
19642594 2			102,600.00		102,363.04			21-Jun-2005		9.875%		CA - 19.92%		Paid Off - 360		01-Feb-2005
19642594 2					102,363.04			21-Jun-2005		9.875%		CA - 19.92%		Paid Off - 360		01-Feb-2005
19643303 1			153,000.00		152,993.44			27-Jun-2005		7.750%		FL - 90.00%		Paid Off - 360		01-Feb-2005
19643303 1					152,993.44			27-Jun-2005		7.750%		FL - 90.00%		Paid Off - 360		01-Feb-2005
19645746 2			225,000.00		224,020.43			29-Jun-2005		6.750%		CA - 90.00%		Paid Off - 360		01-Feb-2005
19645746 2					224,020.43			29-Jun-2005		6.750%		CA - 90.00%		Paid Off - 360		01-Feb-2005
19645902 2			75,500.00		75,041.40			29-Jun-2005		7.875%		IN - 82.07%		Paid Off - 360		01-Feb-2005
19645902 2					75,041.40			29-Jun-2005		7.875%		IN - 82.07%		Paid Off - 360		01-Feb-2005
19646819 2			92,000.00		91,671.02			16-Jun-2005		6.600%		FL - 80.00%		Paid Off - 360		01-Mar-2005
19646819 2					91,671.02			16-Jun-2005		6.600%		FL - 80.00%		Paid Off - 360		01-Mar-2005
19646876 2			23,000.00		22,960.06			16-Jun-2005		10.150%		FL - 20.00%		Paid Off - 180		01-Mar-2005
19646876 2					22,960.06			16-Jun-2005		10.150%		FL - 20.00%		Paid Off - 180		01-Mar-2005
19646975 2			212,000.00		211,208.32			29-Jun-2005		6.375%		IL - 61.99%		Paid Off - 360		01-Mar-2005
19646975 2					211,208.32			29-Jun-2005		6.375%		IL - 61.99%		Paid Off - 360		01-Mar-2005
19647007 2			118,000.00		117,725.44			29-Jun-2005		8.750%		RI - 62.11%		Paid Off - 360		01-Mar-2005
19647007 2					117,725.44			29-Jun-2005		8.750%		RI - 62.11%		Paid Off - 360		01-Mar-2005
19647270 2			300,000.00		299,078.44			30-Jun-2005		7.375%		CA - 65.22%		Paid Off - 360		01-Mar-2005
19647270 2					299,078.44			30-Jun-2005		7.375%		CA - 65.22%		Paid Off - 360		01-Mar-2005
19647494 2			271,600.00		271,600.00			28-Jun-2005		7.125%		CA - 79.88%		Paid Off - 360		01-Mar-2005
19647494 2					271,600.00			28-Jun-2005		7.125%		CA - 79.88%		Paid Off - 360		01-Mar-2005
19647502 2			67,900.00		67,768.32			28-Jun-2005		9.625%		CA - 19.97%		Paid Off - 360		01-Mar-2005
19647502 2					67,768.32			28-Jun-2005		9.625%		CA - 19.97%		Paid Off - 360		01-Mar-2005
19648021 2			105,500.00		105,111.30			29-Jun-2005		7.600%		TX - 84.40%		Paid Off - 360		01-Feb-2005
19648021 2					105,111.30			29-Jun-2005		7.600%		TX - 84.40%		Paid Off - 360		01-Feb-2005
322586926 1			335,000.00		332,465.31			22-Jun-2005		6.990%		NY - 83.75%		Paid Off - 360		01-Oct-2004
322586926 1					332,465.31			22-Jun-2005		6.990%		NY - 83.75%		Paid Off - 360		01-Oct-2004
322590100 2			295,000.00		292,444.54			05-Jul-2005		6.850%		CA - 73.75%		Paid Off - 360		01-Sep-2004
322590100 2					292,444.54			05-Jul-2005		6.850%		CA - 73.75%		Paid Off - 360		01-Sep-2004
322590670 2			236,000.00		236,000.00			08-Jul-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Oct-2004
322590670 2					236,000.00			08-Jul-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Oct-2004
322963380 2			352,000.00		352,000.00			23-Jun-2005		5.375%		CA - 80.00%		Paid Off - 360		01-Dec-2004
322963380 2					352,000.00			23-Jun-2005		5.375%		CA - 80.00%		Paid Off - 360		01-Dec-2004
322965930 2			86,000.00		85,844.40			14-Jul-2005		11.875%		MA - 20.00%		Paid Off - 180		01-Jan-2005
322965930 2					85,844.40			14-Jul-2005		11.875%		MA - 20.00%		Paid Off - 180		01-Jan-2005
322965948 2			344,000.00		342,790.64			14-Jul-2005		8.750%		MA - 80.00%		Paid Off - 360		01-Jan-2005
322965948 2					342,790.64			14-Jul-2005		8.750%		MA - 80.00%		Paid Off - 360		01-Jan-2005
322965963 1			156,750.00		156,252.95			30-Jun-2005		9.250%		CO - 75.00%		Paid Off - 360		01-Jan-2005
322965963 1					156,252.95			30-Jun-2005		9.250%		CO - 75.00%		Paid Off - 360		01-Jan-2005
322966003 1			131,920.00		130,986.63			06-Jul-2005		5.999%		AZ - 80.00%		Paid Off - 360		01-Dec-2004
322966003 1					130,986.63			06-Jul-2005		5.999%		AZ - 80.00%		Paid Off - 360		01-Dec-2004
322966516 2			59,000.00		58,923.38			16-Jun-2005		13.365%		NV - 20.00%		Paid Off - 180		01-Jan-2005
322966516 2					58,923.38			16-Jun-2005		13.365%		NV - 20.00%		Paid Off - 180		01-Jan-2005
322966524 2			236,000.00		234,958.75			16-Jun-2005		7.625%		NV - 80.00%		Paid Off - 360		01-Jan-2005
322966524 2					234,958.75			16-Jun-2005		7.625%		NV - 80.00%		Paid Off - 360		01-Jan-2005
322966706 1			90,000.00		89,999.66			06-Jul-2005		6.125%		FL - 100.00%		Paid Off - 360		01-Jan-2005
322966706 1					89,999.66			06-Jul-2005		6.125%		FL - 100.00%		Paid Off - 360		01-Jan-2005
322966813 1			495,900.00		495,900.00			15-Jul-2005		6.500%		CA - 95.00%		Paid Off - 360		01-Jan-2005
322966813 1					495,900.00			15-Jul-2005		6.500%		CA - 95.00%		Paid Off - 360		01-Jan-2005
322966854 1			13,600.00		13,536.20			06-Jul-2005		14.125%		FL - 20.00%		Paid Off - 240		01-Jan-2005
322966854 1					13,536.20			06-Jul-2005		14.125%		FL - 20.00%		Paid Off - 240		01-Jan-2005
322966862 1			54,400.00		54,147.50			06-Jul-2005		7.375%		FL - 80.00%		Paid Off - 360		01-Jan-2005
322966862 1					54,147.50			06-Jul-2005		7.375%		FL - 80.00%		Paid Off - 360		01-Jan-2005
322967233 1			205,000.00		203,802.73			01-Jul-2005		6.999%		VA - 67.88%		Paid Off - 360		01-Dec-2004
322967233 1					203,802.73			01-Jul-2005		6.999%		VA - 67.88%		Paid Off - 360		01-Dec-2004
322967449 2			97,800.00		97,567.91			17-Jun-2005		10.625%		CA - 19.96%		Paid Off - 180		01-Jan-2005
322967449 2					97,567.91			17-Jun-2005		10.625%		CA - 19.96%		Paid Off - 180		01-Jan-2005
323066746 1			144,000.00		143,177.74			06-Jul-2005		6.125%		WA - 80.00%		Paid Off - 360		01-Feb-2005
323066746 1					143,177.74			06-Jul-2005		6.125%		WA - 80.00%		Paid Off - 360		01-Feb-2005
323067371 1			125,400.00		124,916.85			11-Jul-2005		7.375%		UT - 95.00%		Paid Off - 360		01-Feb-2005
323067371 1					124,916.85			11-Jul-2005		7.375%		UT - 95.00%		Paid Off - 360		01-Feb-2005
323067983 2			76,400.00		76,214.04			16-Jun-2005		9.625%		IL - 84.98%		Paid Off - 360		01-Feb-2005
323067983 2					76,214.04			16-Jun-2005		9.625%		IL - 84.98%		Paid Off - 360		01-Feb-2005
323068742 1			75,000.00		74,847.39			24-Jun-2005		10.500%		OH - 100.00%		Paid Off - 360		01-Feb-2005
323068742 1					74,847.39			24-Jun-2005		10.500%		OH - 100.00%		Paid Off - 360		01-Feb-2005
323069195 2			110,250.00		109,873.52			30-Jun-2005		7.999%		NM - 90.00%		Paid Off - 360		01-Feb-2005
323069195 2					109,873.52					7.999%		NM - 90.00%		Paid Off - 360


Page 18 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

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

&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

323069559 2			431,200.00		431,200.00			05-Jul-2005		5.625%		CA - 80.00%		Paid Off - 360		01-Feb-2005
			431,200.00

323069567 2			80,850.00		80,672.89			06-Jul-2005		10.125%		CA - 15.00%		Paid Off - 180		01-Feb-2005
323069567 2					80,672.89			06-Jul-2005		10.125%		CA - 15.00%		Paid Off - 180		01-Feb-2005
323072231 2			50,000.00		49,904.19			13-Jul-2005		10.750%		VA - 20.00%		Paid Off - 180		01-Feb-2005
323072231 2					49,904.19			13-Jul-2005		10.750%		VA - 20.00%		Paid Off - 180		01-Feb-2005
323072702 2			140,000.00		139,384.56			01-Jul-2005		6.700%		AZ - 80.00%		Paid Off - 360		01-Feb-2005
323072702 2					139,384.56			01-Jul-2005		6.700%		AZ - 80.00%		Paid Off - 360		01-Feb-2005
323072710 2			35,000.00		34,773.05			01-Jul-2005		10.250%		AZ - 20.00%		Paid Off - 240		01-Feb-2005
323072710 2					34,773.05			01-Jul-2005		10.250%		AZ - 20.00%		Paid Off - 240		01-Feb-2005
323073155 2			400,000.00		400,000.00			30-Jun-2005		7.300%		VA - 82.47%		Paid Off - 360		01-Feb-2005
323073155 2					400,000.00			30-Jun-2005		7.300%		VA - 82.47%		Paid Off - 360		01-Feb-2005
323073627 1			185,000.00		184,043.14			14-Jul-2005		5.850%		CA - 52.86%		Paid Off - 360		01-Feb-2005
323073627 1					184,043.14			14-Jul-2005		5.850%		CA - 52.86%		Paid Off - 360		01-Feb-2005
323073965 1			331,100.00		331,100.00			01-Jul-2005		6.250%		CA - 75.25%		Paid Off - 360		01-Feb-2005
323073965 1					331,100.00			01-Jul-2005		6.250%		CA - 75.25%		Paid Off - 360		01-Feb-2005
323074153 1			328,000.00		328,000.00			11-Jul-2005		7.450%		CA - 80.00%		Paid Off - 360		01-Feb-2005
323074153 1					328,000.00			11-Jul-2005		7.450%		CA - 80.00%		Paid Off - 360		01-Feb-2005
323075697 1			88,000.00		87,578.57			20-Jun-2005		6.250%		MO - 80.00%		Paid Off - 360		01-Feb-2005
323075697 1					87,578.57			20-Jun-2005		6.250%		MO - 80.00%		Paid Off - 360		01-Feb-2005
323076026 1			113,050.00		112,571.97			16-Jun-2005		6.900%		FL - 85.00%		Paid Off - 360		01-Feb-2005
323076026 1					112,571.97			16-Jun-2005		6.900%		FL - 85.00%		Paid Off - 360		01-Feb-2005
323196048 2			427,500.00		427,500.00			30-Jun-2005		7.259%		GA - 92.93%		Paid Off - 360		01-Mar-2005
323196048 2					427,500.00			30-Jun-2005		7.259%		GA - 92.93%		Paid Off - 360		01-Mar-2005
323196717 2			13,000.00		12,988.54			06-Jul-2005		13.240%		CO - 20.00%		Paid Off - 180		01-Mar-2005
323196717 2					12,988.54			06-Jul-2005		13.240%		CO - 20.00%		Paid Off - 180		01-Mar-2005
323196725 1			52,000.00		51,862.54			06-Jul-2005		8.125%		CO - 80.00%		Paid Off - 360		01-Mar-2005
323196725 1					51,862.54			06-Jul-2005		8.125%		CO - 80.00%		Paid Off - 360		01-Mar-2005
323202416 1			216,000.00		216,000.00			23-Jun-2005		7.250%		IN - 80.00%		Paid Off - 360		01-Apr-2005
323202416 1					216,000.00			23-Jun-2005		7.250%		IN - 80.00%		Paid Off - 360		01-Apr-2005
323202481 2			252,000.00		252,000.00			28-Jun-2005		6.990%		CA - 80.00%		Paid Off - 360		01-Feb-2005
323202481 2					252,000.00			28-Jun-2005		6.990%		CA - 80.00%		Paid Off - 360		01-Feb-2005
323202945 1			240,000.00		239,133.50			14-Jul-2005		6.550%		CA - 80.00%		Paid Off - 360		01-Mar-2005
323202945 1					239,133.50			14-Jul-2005		6.550%		CA - 80.00%		Paid Off - 360		01-Mar-2005
323203034 1			117,600.00		117,179.59			28-Jun-2005		7.750%		CT - 80.00%		Paid Off - 360		01-Feb-2005
323203034 1					117,179.59			28-Jun-2005		7.750%		CT - 80.00%		Paid Off - 360		01-Feb-2005
323203877 2			360,000.00		360,000.00			23-Jun-2005		6.990%		IL - 80.00%		Paid Off - 360		01-Apr-2005
323203877 2					360,000.00			23-Jun-2005		6.990%		IL - 80.00%		Paid Off - 360		01-Apr-2005
323203885 2			90,000.00		89,885.81			23-Jun-2005		10.250%		IL - 20.00%		Paid Off - 180		01-Apr-2005
323203885 2					89,885.81			23-Jun-2005		10.250%		IL - 20.00%		Paid Off - 180		01-Apr-2005
323204396 1			350,000.00		350,000.00			21-Jun-2005		7.420%		FL - 79.91%		Paid Off - 360		01-Mar-2005
323204396 1					350,000.00			21-Jun-2005		7.420%		FL - 79.91%		Paid Off - 360		01-Mar-2005
323204610 1			135,000.00		134,526.53			05-Jul-2005		6.700%		FL - 90.00%		Paid Off - 360		01-Mar-2005
323204610 1					134,526.53			05-Jul-2005		6.700%		FL - 90.00%		Paid Off - 360		01-Mar-2005
323207928 2			171,900.00		171,593.34			13-Jul-2005		8.625%		OR - 90.00%		Paid Off - 360		01-Apr-2005
323207928 2					171,593.34			13-Jul-2005		8.625%		OR - 90.00%		Paid Off - 360		01-Apr-2005
323213231 2			152,000.00		151,996.67			27-Jun-2005		7.750%		CA - 95.00%		Paid Off - 360		01-Apr-2005
323213231 2					151,996.67			27-Jun-2005		7.750%		CA - 95.00%		Paid Off - 360		01-Apr-2005
323214635 1			105,600.00		105,253.50			05-Jul-2005		7.625%		NV - 80.00%		Paid Off - 360		01-Mar-2005
323214635 1					105,253.50			05-Jul-2005		7.625%		NV - 80.00%		Paid Off - 360		01-Mar-2005
323214643 1			26,400.00		26,371.77			05-Jul-2005		12.375%		NV - 20.00%		Paid Off - 180		01-Mar-2005
323214643 1					26,371.77			05-Jul-2005		12.375%		NV - 20.00%		Paid Off - 180		01-Mar-2005
323255521 2			616,250.00		616,250.00			14-Jul-2005		6.010%		CA - 85.00%		Paid Off - 360		01-Apr-2005
323255521 2					616,250.00			14-Jul-2005		6.010%		CA - 85.00%		Paid Off - 360		01-Apr-2005
323256529 2			600,000.00		600,000.00			30-Jun-2005		7.450%		NC - 80.00%		Paid Off - 360		01-Apr-2005
323256529 2					600,000.00			30-Jun-2005		7.450%		NC - 80.00%		Paid Off - 360		01-Apr-2005
323256826 2			487,500.00		486,102.41			23-Jun-2005		6.240%		NY - 75.00%		Paid Off - 360		01-Apr-2005
323256826 2					486,102.41			23-Jun-2005		6.240%		NY - 75.00%		Paid Off - 360		01-Apr-2005
323257717 2			416,000.00		414,832.33			14-Jul-2005		6.350%		MA - 68.09%		Paid Off - 360		01-Apr-2005
323257717 2					414,832.33			14-Jul-2005		6.350%		MA - 68.09%		Paid Off - 360		01-Apr-2005
323260554 1			157,000.00		156,561.42			20-Jun-2005		6.375%		VA - 89.71%		Paid Off - 360		01-Apr-2005
323260554 1					156,561.42			20-Jun-2005		6.375%		VA - 89.71%		Paid Off - 360		01-Apr-2005
323271114 2			140,250.00		140,092.17			12-Jul-2005		8.875%		FL - 85.00%		Paid Off - 360		01-May-2005
323271114 2					140,092.17			12-Jul-2005		8.875%		FL - 85.00%		Paid Off - 360		01-May-2005
323271874 2			180,900.00		180,568.92			14-Jul-2005		8.500%		MI - 90.00%		Paid Off - 360		01-Apr-2005
323271874 2					180,568.92			14-Jul-2005		8.500%		MI - 90.00%		Paid Off - 360		01-Apr-2005
323274019 2			175,100.00		174,634.00			30-Jun-2005		6.625%		CA - 85.00%		Paid Off - 360		01-Apr-2005
323274019 2					174,634.00			30-Jun-2005		6.625%		CA - 85.00%		Paid Off - 360		01-Apr-2005
323276311 2			496,000.00		496,000.00			29-Jun-2005		9.625%		CA - 80.00%		Paid Off - 360		01-Apr-2005
323276311 2					496,000.00			29-Jun-2005		9.625%		CA - 80.00%		Paid Off - 360		01-Apr-2005
323277350 2			371,250.00		370,478.48			23-Jun-2005		7.875%		CA - 72.79%		Paid Off - 360		01-Apr-2005
323277350 2					370,478.48			23-Jun-2005		7.875%		CA - 72.79%		Paid Off - 360		01-Apr-2005
323278184 2			95,000.00		94,740.97			01-Jul-2005		6.500%		CA - 47.50%		Paid Off - 360		01-Apr-2005
323278184 2					94,740.97			01-Jul-2005		6.500%		CA - 47.50%		Paid Off - 360		01-Apr-2005
323278325 2			200,000.00		199,633.93			27-Jun-2005		8.500%		IL - 78.43%		Paid Off - 360		01-Apr-2005
323278325 2					199,633.93					8.500%		IL - 78.43%		Paid Off - 360


Page 19 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution

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

&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

323278697 2			124,200.00		123,928.61			07-Jul-2005		7.625%		IL - 86.13%		Paid Off - 360		01-Apr-2005
			124,200.00

323278770 2			248,000.00		247,474.74			08-Jul-2005		6.540%		FL - 80.00%		Paid Off - 360		01-May-2005
323278770 2					247,474.74			08-Jul-2005		6.540%		FL - 80.00%		Paid Off - 360		01-May-2005
323278887 2			236,800.00		236,467.36			01-Jul-2005		7.790%		MD - 80.00%		Paid Off - 360		01-May-2005
323278887 2					236,467.36			01-Jul-2005		7.790%		MD - 80.00%		Paid Off - 360		01-May-2005
323278903 2			144,000.00		143,763.23			24-Jun-2005		7.000%		FL - 80.00%		Paid Off - 360		01-May-2005
323278903 2					143,763.23			24-Jun-2005		7.000%		FL - 80.00%		Paid Off - 360		01-May-2005
323278911 1			36,000.00		35,971.58			24-Jun-2005		10.550%		FL - 20.00%		Paid Off - 360		01-May-2005
323278911 1					35,971.58			24-Jun-2005		10.550%		FL - 20.00%		Paid Off - 360		01-May-2005
323280214 2			463,000.00		463,000.00			08-Jul-2005		6.800%		IN - 93.54%		Paid Off - 360		01-May-2005
323280214 2					463,000.00			08-Jul-2005		6.800%		IN - 93.54%		Paid Off - 360		01-May-2005
323280602 2			117,000.00		116,838.43			23-Jun-2005		7.875%		RI - 58.50%		Paid Off - 360		01-May-2005
323280602 2					116,838.43			23-Jun-2005		7.875%		RI - 58.50%		Paid Off - 360		01-May-2005
323280727 2			246,200.00		245,785.14			16-Jun-2005		6.875%		CA - 66.54%		Paid Off - 360		01-May-2005
323280727 2					245,785.14			16-Jun-2005		6.875%		CA - 66.54%		Paid Off - 360		01-May-2005
323281063 2			167,200.00		167,200.00			12-Jul-2005		7.500%		AZ - 80.00%		Paid Off - 360		01-May-2005
323281063 2					167,200.00			12-Jul-2005		7.500%		AZ - 80.00%		Paid Off - 360		01-May-2005
323281071 2			41,800.00		41,759.78			12-Jul-2005		9.625%		AZ - 20.00%		Paid Off - 360		01-May-2005
323281071 2					41,759.78			12-Jul-2005		9.625%		AZ - 20.00%		Paid Off - 360		01-May-2005
410049454 1			103,200.00		103,200.00			29-Jun-2005		7.250%		AZ - 74.24%		Paid Off - 360		01-Jan-2005
410049454 1					103,200.00			29-Jun-2005		7.250%		AZ - 74.24%		Paid Off - 360		01-Jan-2005
410143650 1			358,000.00		355,885.43			20-Jun-2005		6.125%		NJ - 84.83%		Paid Off - 360		01-Jan-2005
410143650 1					355,885.43			20-Jun-2005		6.125%		NJ - 84.83%		Paid Off - 360		01-Jan-2005
410201177 2			196,000.00		195,193.92			24-Jun-2005		7.990%		CA - 80.00%		Paid Off - 360		01-Jan-2005
410201177 2					195,193.92			24-Jun-2005		7.990%		CA - 80.00%		Paid Off - 360		01-Jan-2005
410255818 1			215,900.00		215,413.36			14-Jun-2005		9.990%		NJ - 85.00%		Paid Off - 360		01-Feb-2005
410255818 1					215,413.36			14-Jun-2005		9.990%		NJ - 85.00%		Paid Off - 360		01-Feb-2005
412065389 1			216,000.00		215,227.79			17-Jun-2005		7.750%		NJ - 88.89%		Paid Off - 360		01-Feb-2005
412065389 1					215,227.79			17-Jun-2005		7.750%		NJ - 88.89%		Paid Off - 360		01-Feb-2005
412134141 2			348,000.00		346,554.16			23-Jun-2005		6.990%		CA - 89.23%		Paid Off - 360		01-Feb-2005
412134141 2					346,554.16			23-Jun-2005		6.990%		CA - 89.23%		Paid Off - 360		01-Feb-2005
412214038 2			180,000.00		179,499.91			30-Jun-2005		8.990%		IL - 90.00%		Paid Off - 360		01-Feb-2005
412214038 2					179,499.91			30-Jun-2005		8.990%		IL - 90.00%		Paid Off - 360		01-Feb-2005


TOTAL			18,752,570.00		18,713,133.77
TOTAL


Page 20 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



											Group 2		Group 1		Total


Current
Current



Number of Loans Liquidated										0		0		0
Collateral Principal Realized Loss/(Gain) Amount										0.00		0.00		0.00
Collateral Interest Realized Loss/(Gain) Amount										0.00		0.00		0.00
Net Liquidation Proceeds										0.00		0.00		0.00

Cumulative
Cumulative



Number of Loans Liquidated										0		0		0
Collateral Realized Loss/(Gain) Amount										0.00		0.00		0.00
Net Liquidation Proceeds										0.00		0.00		0.00










Page 21 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution


DEFAULT SPEEDS



											Group 2		Group 1		Total



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


SDA										0.00%		0.00%		0.00%
3 Months Avg SDA Approximation										0.00%		0.00%		0.00%
12 Months Avg SDA Approximation										0.00%		0.00%		0.00%
Avg SDA Since Cut-off Approximation										0.00%		0.00%		0.00%


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












Page 22 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 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 23 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Realized Loss Detail Report
Loan Number			Current		State &				Prior		Realized				Cumulative
															Cumulative
&		Loan	Note		LTV at		Original		Principal		Loss/(Gain)		Realized		Realized

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




TOTAL



Page 24 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Triggers and Adj. Cert. Report
TRIGGER EVENTS
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
						3M Rolling Avg.Bal 60+ days includes BK,FC,REO								3,971,549.81
						Ending Balance								887,998,101.96
						Prior Period Senior Enhancement Percentage								20.7073%



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
										Group 2		Group 1		Total
Basis Risk CarryForward Amount paid														0.00
Basis Risk CarryForward Amount unpaid														0.00




Page 25 of 26
Morgan Stanley ABS Capital I Inc. 2005-HEL2

Mortgage Pass-Through Certificates
Mortgage Pass-Through Certificates
2005-HEL2

July 25, 2005 Distribution
Other Related Information
ADDITIONAL INFORMATION
ADDITIONAL INFORMATION
										Group 2		Group 1		Total
Current Scheduled Payments														5,939,324.95
Current Scheduled Payments 1 Month Prior														6,014,981.54
Current Scheduled Payments 2 Month Prior														0.00
Current Scheduled Payments 3 Month Prior														0.00
Current Scheduled Payments 4 Month Prior														0.00
Current Scheduled Payments 5 Month Prior														0.00
Current Scheduled Payments 6 Month Prior														0.00
Current Scheduled Payments 7 Month Prior														0.00
Current Scheduled Payments 8 Month Prior														0.00
Current Scheduled Payments 9 Month Prior														0.00
Current Scheduled Payments 10 Month Prior														0.00
Current Scheduled Payments 11 Month Prior														0.00





Sched. Payments for 60+Day Delinquent Loans										0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior										0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior										0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior										0.00		0.00		0.00
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




Page 26 of 26

Morgan Stanley Home Equity Loan Trust 2005-2 8-K