

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


                                MORGAN STANLEY ABS CAPITAL I INC.
              (as Depositor under the Pooling and Servicing Agreement, dated as
              March 1, 2005, providing for the issuance of Mortgage Pass-Through
                              Certificates, Series 2005-HE2)
                      (Exact name of registrant as specified in charter)



                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-28                        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 2005-HE2, which
     was made on March 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
     October 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:  Oct 28, 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
              October 25, 2005.



Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

				External Parties						Table of Contents

													Page
				Seller
										1. Certificate Payment Report					2
				Morgan Stanley
										2. Collection Account Report					6

										3. Credit Enhancement Report					8
										4. Collateral Report					9
				Certificate Insurer(s)						5. Delinquency Report					12

										6. REO Report					16

										7. Foreclosure Report					17
										8. Prepayment Report					20
										9. Prepayment Detail Report					23

										10. Realized Loss Report					31
										11. Realized Loss Detail Report					34
				Servicer(s)
										12. Triggers and Adj. Cert. Report					35
				Option One
										13. Other Related Information					36



				Underwriter(s)
				Morgan Stanley


										Total Number of Pages					36


				Dates						Contacts

				Cut-Off Date:			March 01, 2005			Marion Hogan
				Close Date:			March 30, 2005			Administrator
				First Distribution Date:			April 25, 2005			(714) 247-6282
										marion.c.hogan@db.com

										Address:
										1761 East St. Andrew Place, Santa Ana, CA 92705
				Distribution Date:			October 25, 2005
										Factor Information:			(800) 735-7777
				Record Date:			September 30, 2005
										Main Phone Number:			(714) 247-6000

							October 24, 2005


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






Page 1 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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-1ss	SR	$	326,085,000.00		261,256,023.53		850,243.21		12,866,227.32		13,716,470.53		0.00		0.00		248,389,796.21

A-1mz	SR	$	81,522,000.00		65,314,606.79		215,193.49		3,216,586.43		3,431,779.92		0.00		0.00		62,098,020.36
A-2ss	SR	$	366,742,000.00		285,508,317.48		931,470.89		16,397,137.01		17,328,607.90		0.00		0.00		269,111,180.47
A-2mz	SR	$	40,750,000.00		31,723,838.39		104,265.68		1,821,943.85		1,926,209.53		0.00		0.00		29,901,894.54
A-3a	SR	$	240,000,000.00		144,650,759.10		456,774.95		18,299,801.33		18,756,576.28		0.00		0.00		126,350,957.77
A-3b	SR	$	191,902,000.00		191,902,000.00		626,080.28		0.00		626,080.28		0.00		0.00		191,902,000.00
A-3mz	SR	$	47,990,000.00		37,395,443.67		122,906.36		2,033,348.92		2,156,255.28		0.00		0.00		35,362,094.75
M-1	SUB	$	49,257,000.00		49,256,999.99		167,843.23		0.01		167,843.24		0.00		0.00		49,256,999.98
M-2	SUB	$	44,490,000.00		44,490,000.00		153,033.24		0.00		153,033.24		0.00		0.00		44,490,000.00
M-3	SUB	$	28,601,000.00		28,601,000.00		99,301.08		0.00		99,301.08		0.00		0.00		28,601,000.00
M-4	SUB	$	26,218,000.00		26,218,000.00		94,195.45		0.00		94,195.45		0.00		0.00		26,218,000.00
M-5	SUB	$	25,423,000.00		25,423,000.00		92,363.17		0.00		92,363.17		0.00		0.00		25,423,000.00
M-6	SUB	$	22,245,000.00		22,245,000.00		81,713.30		0.00		81,713.30		0.00		0.00		22,245,000.00
B-1	SUB	$	19,067,000.00		19,067,000.00		77,258.42		0.00		77,258.42		0.00		0.00		19,067,000.00
B-2	SUB	$	15,890,000.00		15,890,000.00		65,665.43		0.00		65,665.43		0.00		0.00		15,890,000.00
B-3	SUB	$	15,890,000.00		15,890,000.00		73,345.59		0.00		73,345.59		0.00		0.00		15,890,000.00
X	NOF	$	46,874,277.00		46,873,915.16		3,164,655.51		0.00		3,164,655.51		0.00		0.00		46,873,915.16
P	NOF	$	0.00		0.00		1,088,254.42		0.00		1,088,254.42		0.00		0.00		0.00
R	NOF/RES	$	0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,588,946,277.00		1,311,705,904.11		8,464,563.70		54,635,044.87		63,099,608.57		0.00		0.00		1,257,070,859.24






Page 2 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

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-1ss	09/26/05		10/24/05		A-Act/360		61744CMU7		326,085,000.00		801.189946		2.607428		39.456667		42.064095	761.733279
A-1mz	09/26/05		10/24/05		A-Act/360		61744CMV5		81,522,000.00		801.189946		2.639698		39.456667		42.096366	761.733279
A-2ss	09/26/05		10/24/05		A-Act/360		61744CMW3		366,742,000.00		778.499101		2.539853		44.710279		47.250132	733.788823
A-2mz	09/26/05		10/24/05		A-Act/360		61744CMX1		40,750,000.00		778.499102		2.558667		44.710279		47.268946	733.788823
A-3a	09/26/05		10/24/05		A-Act/360		61744CMY9		240,000,000.00		602.711496		1.903229		76.249172		78.152401	526.462324
A-3b	09/26/05		10/24/05		A-Act/360		61744CMZ6		191,902,000.00		1,000.000000		3.262500		0.000000		3.262500	1,000.000000
A-3mz	09/26/05		10/24/05		A-Act/360		61744CNA0		47,990,000.00		779.234084		2.561083		42.370263		44.931346	736.863821
M-1	09/26/05		10/24/05		A-Act/360		61744CNB8		49,257,000.00		1,000.000000		3.407500		0.000000		3.407500	1,000.000000
M-2	09/26/05		10/24/05		A-Act/360		61744CNC6		44,490,000.00		1,000.000000		3.439722		0.000000		3.439722	1,000.000000
M-3	09/26/05		10/24/05		A-Act/360		61744CND4		28,601,000.00		1,000.000000		3.471944		0.000000		3.471944	1,000.000000
M-4	09/26/05		10/24/05		A-Act/360		61744CNE2		26,218,000.00		1,000.000000		3.592778		0.000000		3.592778	1,000.000000
M-5	09/26/05		10/24/05		A-Act/360		61744CNF9		25,423,000.00		1,000.000000		3.633056		0.000000		3.633056	1,000.000000
M-6	09/26/05		10/24/05		A-Act/360		61744CNG7		22,245,000.00		1,000.000000		3.673333		0.000000		3.673333	1,000.000000
B-1	09/26/05		10/24/05		A-Act/360		61744CNH5		19,067,000.00		1,000.000000		4.051944		0.000000		4.051944	1,000.000000
B-2	09/26/05		10/24/05		A-Act/360		61744CNJ1		15,890,000.00		1,000.000000		4.132500		0.000000		4.132500	1,000.000000
B-3	09/26/05		10/24/05		A-Act/360		61744CNK8		15,890,000.00		1,000.000000		4.615833		0.000000		4.615833	1,000.000000
X	09/26/05		10/24/05		A-Act/360				46,874,277.00		999.992281		67.513692		0.000000		67.513692	999.992281
P	09/26/05		10/24/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000
R	09/26/05		10/24/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000




Page 3 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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	326,085,000.00		6,032,413.86		75,831,180.08		1,864,023.71		77,695,203.79		83,727,617.65		0.00		0.00		248,389,796.21
A-1mz	81,522,000.00		1,529,603.00		18,957,969.43		466,010.21		19,423,979.64		20,953,582.64		0.00		0.00		62,098,020.36
A-2ss	366,742,000.00		6,716,888.09		95,307,128.34		2,323,691.19		97,630,819.53		104,347,707.62		0.00		0.00		269,111,180.47
A-2mz	40,750,000.00		752,705.66		10,589,911.92		258,193.54		10,848,105.46		11,600,811.12		0.00		0.00		29,901,894.54
A-3a	240,000,000.00		3,822,124.74		110,946,167.65		2,702,874.58		113,649,042.23		117,471,166.97		0.00		0.00		126,350,957.77
A-3b	191,902,000.00		3,946,265.49		0.00		0.00		0.00		3,946,265.49		0.00		0.00		191,902,000.00
A-3mz	47,990,000.00		887,109.96		12,327,580.29		300,324.96		12,627,905.25		13,515,015.21		0.00		0.00		35,362,094.75
M-1	49,257,000.00		1,064,392.65		0.02		0.00		0.02		1,064,392.67		0.00		0.00		49,256,999.98
M-2	44,490,000.00		971,714.29		0.00		0.00		0.00		971,714.29		0.00		0.00		44,490,000.00
M-3	28,601,000.00		631,321.51		0.00		0.00		0.00		631,321.51		0.00		0.00		28,601,000.00
M-4	26,218,000.00		601,552.09		0.00		0.00		0.00		601,552.09		0.00		0.00		26,218,000.00
M-5	25,423,000.00		590,691.15		0.00		0.00		0.00		590,691.15		0.00		0.00		25,423,000.00
M-6	22,245,000.00		523,309.08		0.00		0.00		0.00		523,309.08		0.00		0.00		22,245,000.00
B-1	19,067,000.00		500,573.70		0.00		0.00		0.00		500,573.70		0.00		0.00		19,067,000.00
B-2	15,890,000.00		426,391.66		0.00		0.00		0.00		426,391.66		0.00		0.00		15,890,000.00
B-3	15,890,000.00		481,741.83		0.00		0.00		0.00		481,741.83		0.00		0.00		15,890,000.00
X	46,874,277.00		28,298,606.98		349.64		12.20		361.84		28,298,968.82		0.00		0.00		46,873,915.16
P	0.00		6,494,427.80		0.00		0.00		0.00		6,494,427.80		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	1,588,946,277.00		64,271,833.54		323,960,287.37		7,915,130.39		331,875,417.76		396,147,251.30		0.00		0.00		1,257,070,859.24



Page 4 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

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-1ss	4.04000%		261,256,023.53		850,243.21		0.00		0.00		0.00		850,243.21		850,243.21		0.00
A-1mz	4.09000%		65,314,606.79		215,193.49		0.00		0.00		0.00		215,193.49		215,193.49		0.00
A-2ss	4.05000%		285,508,317.48		931,470.89		0.00		0.00		0.00		931,470.89		931,470.89		0.00
A-2mz	4.08000%		31,723,838.39		104,265.68		0.00		0.00		0.00		104,265.68		104,265.68		0.00
A-3a	3.92000%		144,650,759.10		456,774.95		0.00		0.00		0.00		456,774.95		456,774.95		0.00
A-3b	4.05000%		191,902,000.00		626,080.28		0.00		0.00		0.00		626,080.28		626,080.28		0.00
A-3mz	4.08000%		37,395,443.67		122,906.36		0.00		0.00		0.00		122,906.36		122,906.36		0.00
M-1	4.23000%		49,256,999.99		167,843.23		0.00		0.00		0.00		167,843.23		167,843.23		0.00
M-2	4.27000%		44,490,000.00		153,033.24		0.00		0.00		0.00		153,033.24		153,033.24		0.00
M-3	4.31000%		28,601,000.00		99,301.08		0.00		0.00		0.00		99,301.08		99,301.08		0.00
M-4	4.46000%		26,218,000.00		94,195.45		0.00		0.00		0.00		94,195.45		94,195.45		0.00
M-5	4.51000%		25,423,000.00		92,363.17		0.00		0.00		0.00		92,363.17		92,363.17		0.00
M-6	4.56000%		22,245,000.00		81,713.30		0.00		0.00		0.00		81,713.30		81,713.30		0.00
B-1	5.03000%		19,067,000.00		77,258.42		0.00		0.00		0.00		77,258.42		77,258.42		0.00
B-2	5.13000%		15,890,000.00		65,665.43		0.00		0.00		0.00		65,665.43		65,665.43		0.00
B-3	5.73000%		15,890,000.00		73,345.59		0.00		0.00		0.00		73,345.59		73,345.59		0.00
X	83.81075%		46,873,915.16		0.00		0.00		0.00		0.00		0.00		3,164,655.51		0.00
P	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		1,088,254.42		0.00
R	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,311,705,904.11		4,211,653.77		0.00		0.00		0.00		4,211,653.77		8,464,563.70		0.00



Page 5 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Collection Account Report
SUMMARY

								Group 3		Group 2		Group 1		Total
Principal Collections								20,330,062.65		18,216,314.28		16,080,371.56		54,626,748.49
Principal Withrawals								0.00		0.00		0.00		0.00
Principal Other Accounts								0.00		0.00		0.00		0.00
TOTAL NET PRINCIPAL								20,330,062.65		18,216,314.28		16,080,371.56		54,626,748.49
Interest Collections								2,773,253.43		2,323,558.02		2,372,773.49		7,469,584.94
Interest Withdrawals								-0.00		-0.00		-0.00		-0.00
Interest Other Accounts								0.00		0.00		1,088,254.42		1,088,254.42
Interest Fees								-29,535.52		-28,707.36		-25,534.00		-84,979.28
TOTAL NET INTEREST								2,743,717.92		2,294,850.65		3,435,493.91		8,472,860.08
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION								23,073,780.57		20,511,164.93		19,515,865.47		63,099,608.57



PRINCIPAL - COLLECTIONS

									Group 3		Group 2		Group 1		Total
Scheduled Principal Received									377,481.97		328,425.35		332,602.70		1,038,510.02
Prepayments In Full									19,959,378.33		17,711,111.62		15,460,956.09		53,131,446.04
Curtailments									-6,797.65		11,678.94		20,792.41		25,673.70
Liquidations									0.00		165,600.00		273,815.10		439,415.10
Insurance Principal									0.00		0.00		0.00		0.00
Repurchased Principal Amounts									0.00		0.00		0.00		0.00
Other Principal									0.00		0.00		0.00		0.00
Total Realized Loss Of Principal									-0.00		-501.63		-7,794.74		-8,296.37
Delinquent Principal									-336,418.65		-287,530.79		-293,875.57		-917,825.01
Advanced Principal									336,418.65		287,530.79		293,875.57		917,825.01
TOTAL PRINCIPAL COLLECTED									20,330,062.65		18,216,314.28		16,080,371.56		54,626,748.49


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS

								Group 3		Group 2		Group 1		Total
Closing Deposit
TOTAL OTHER ACCOUNTS PRINCIPAL								0.00		0.00		0.00		0.00





Page 6 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

INTEREST - COLLECTIONS

								Group 3		Group 2		Group 1		Total
Scheduled Interest								2,945,650.07		2,465,952.47		2,521,389.39		7,932,991.93
Liquidation Interest								0.00		807.30		1,542.49		2,349.79
Repurchased Interest								0.00		0.00		0.00		0.00
Insurance Interest								0.00		0.00		0.00		0.00
Other Interest								0.00		0.00		0.00		0.00
Relief Act Interest Shortfalls								-0.00		-0.00		-0.00		-0.00
Prepayment Interest Shortfalls								-53,605.32		-40,778.59		-39,351.11		-133,735.02
Compensating Interest								53,605.32		40,778.59		39,351.10		133,735.02
Delinquent Interest								-2,526,929.35		-2,062,293.58		-2,169,558.74		-6,758,781.67
Interest Advanced								2,354,532.71		1,919,091.83		2,019,400.37		6,293,024.91
TOTAL INTEREST COLLECTED								2,773,253.43		2,323,558.02		2,372,773.49		7,469,584.94


INTEREST - WITHDRAWALS

								Group 3		Group 2		Group 1		Total
Nonrecoverable Advances
TOTAL INTEREST WITHDRAWALS								0.00		0.00		0.00		0.00



INTEREST - OTHER ACCOUNTS

								Group 3		Group 2		Group 1		Total
Prepayment Charges								0.00		0.00		1,088,254.42		1,088,254.42
TOTAL INTEREST OTHER ACCOUNTS								0.00		0.00		1,088,254.42		1,088,254.42



INTEREST - FEES

								Group 3		Group 2		Group 1		Total
Current Servicing Fees								28,811.17		28,092.74		24,905.41		81,809.32
Current Trustee Fees								724.35		614.62		628.59		1,967.56
Current Custodian Fees														1,202.40
TOTAL INTEREST OTHER FEES								29,535.52		28,707.36		25,534.00		84,979.28




Page 7 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Credit Enhancement Report
ACCOUNTS

SPACE INTENTIONALLY LEFT BLANK



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES

								Group 3		Group 2		Group 1		Total
Overcollateralization Amount														46,873,915.17
Overcollateralization Target Amount														46,873,915.16
Overcollateralization Deficiency Amount														8,296.37
Overcollateralization Release Amount														0.00




Page 8 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Collateral Report


COLLATERAL



									Group 3		Group 2		Group 1		Total



Loan Count:


Original								3,369		2,867		3,482		9,718
Prior								2,894		2,402		2,987		8,283
Prefunding								0		0		0		0
Scheduled Paid Offs								-0		-0		-0		-0
Full Voluntary Prepayments								-95		-103		-91		-289
Repurchases								-0		-0		-0		-0
Liquidations								-0		-1		-1		-2
Current								2,799		2,298		2,895		7,992
Principal Balance:


Original								588,824,042.09		499,990,160.81		500,130,978.76		1,588,945,181.66
Prior								482,898,736.15		409,745,716.58		419,061,451.38		1,311,705,904.11
Prefunding								0.00		0.00		0.00		0.00
Scheduled Principal								-377,481.97		-328,425.35		-332,602.70		-1,038,510.02
Partial Prepayments								(6,797.65)		-11,678.94		-20,792.41		-25,673.70
Full Voluntary Prepayments								-19,959,378.33		-17,711,111.62		-15,460,956.09		-53,131,446.04
Repurchases								-0.00		-0.00		-0.00		-0.00
Liquidations								-0.00		-165,600.00		-273,815.10		-439,415.10
Current								462,568,673.50		391,528,900.67		402,973,285.08		1,257,070,859.25





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






Page 9 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Coupon Original								7.35029%		7.28066%		7.25938%		7.29976%
Weighted Average Coupon Prior								7.31835%		7.24025%		7.22705%		7.26474%
Weighted Average Coupon Current								7.31992%		7.22427%		7.22086%		7.25839%
Weighted Average Months to Maturity Original								351		350		350		350
Weighted Average Months to Maturity Prior								345		344		345		345
Weighted Average Months to Maturity Current								344		343		344		344
Weighted Avg Remaining Amortization Term Original								351		350		350		350
Weighted Avg Remaining Amortization Term Prior								345		344		345		345
Weighted Avg Remaining Amortization Term Current								344		343		344		344
Weighted Average Seasoning Original								5.37		5.24		5.32		5.31
Weighted Average Seasoning Prior								10.36		10.24		10.32		10.31
Weighted Average Seasoning Current								11.36		11.23		11.32		11.31









Page 10 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

ARM CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Margin Original								6.14265%		5.69932%		6.10156%		5.99015%
Weighted Average Margin Prior								6.15485%		5.69387%		6.10088%		5.99454%
Weighted Average Margin Current								6.16460%		5.69052%		6.10998%		6.00003%
Weighted Average Max Rate Original								13.52419%		13.80343%		13.45496%		13.58859%
Weighted Average Max Rate Prior								13.48071%		13.77819%		13.41649%		13.55039%
Weighted Average Max Rate Current								13.48256%		13.76041%		13.41322%		13.54436%
Weighted Average Min Rate Original								7.28857%		7.30824%		7.23762%		7.27777%
Weighted Average Min Rate Prior								7.26130%		7.27928%		7.21181%		7.24996%
Weighted Average Min Rate Current								7.26580%		7.26368%		7.21069%		7.24630%
Weighted Average Cap Up Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Up Prior								1.12338%		1.25661%		1.10468%		1.15802%
Weighted Average Cap Up Current								1.12039%		1.25542%		1.10356%		1.15619%
Weighted Average Cap Down Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Down Prior								1.12338%		1.25661%		1.10468%		1.15802%
Weighted Average Cap Down Current								1.12039%		1.25542%		1.10356%		1.15619%




SERVICING FEES & ADVANCES

									Group 3		Group 2		Group 1		Total




Current Servicing Fees								28,811.17		28,092.74		24,905.41		81,809.32
Delinquent Servicing Fees								172,396.64		142,604.59		149,683.31		464,684.54
TOTAL SERVICING FEES								201,207.82		170,696.36		174,588.73		546,492.91


Compensating Interest								-53,605.32		-40,778.59		-39,351.10		-133,735.02
Delinquent Servicing Fees								-172,396.64		-142,604.59		-149,683.31		-464,684.54
COLLECTED SERVICING FEES								-24,794.15		-12,686.82		-14,445.69		-51,926.66


Aggregate Advances with respect to this Distribution								2,690,951.36		2,206,622.62		2,313,275.93		7,210,849.91





ADDITIONAL COLLATERAL INFORMATION
								Group 3		Group 2		Group 1		Total
Net Prepayment Interest Shortfall								0.00		0.00		0.00		0.00
Libor For Current Period														3.8300%




Page 11 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				34,545,572.75		6,989,541.48		5,626,377.12		47,161,491.35
			% Balance				2.75%		0.56%		0.45%		3.75%
			# Loans				227		49		34		310
			% # Loans				2.84%		0.61%		0.43%		3.88%
	FORECLOSURE		Balance		321,412.89		0.00		2,896,641.57		12,316,746.29		15,534,800.75
			% Balance		0.03%		0.00%		0.23%		0.98%		1.24%
			# Loans		2		0		17		94		113
			% # Loans		0.03%		0.00%		0.21%		1.18%		1.41%
	BANKRUPTCY		Balance		3,362,774.87		358,836.12		685,704.27		2,441,799.04		6,849,114.30
			% Balance		0.27%		0.03%		0.05%		0.19%		0.54%
			# Loans		30		3		4		17		54
			% # Loans		0.38%		0.04%		0.05%		0.21%		0.68%
	REO		Balance		0.00		0.00		0.00		1,611,577.23		1,611,577.23
			% Balance		0.00%		0.00%		0.00%		0.13%		0.13%
			# Loans		0		0		0		12		12
			% # Loans		0.00%		0.00%		0.00%		0.15%		0.15%
	TOTAL		Balance		3,684,187.76		34,904,408.87		10,571,887.32		21,996,499.68		71,156,983.63
			% Balance		0.29%		2.78%		0.84%		1.75%		5.66%
			# Loans		32		230		70		157		489
			% # Loans		0.40%		2.88%		0.88%		1.96%		6.12%









Page 12 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution


	GROUP 1
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				11,089,825.07		2,060,517.95		1,483,931.09		14,634,274.11
			% Balance				2.75%		0.51%		0.37%		3.63%
			# Loans				84		18		12		114
			% # Loans				2.90%		0.62%		0.41%		3.94%
	FORECLOSURE		Balance		123,324.21		0.00		1,487,405.28		4,687,024.56		6,297,754.05
			% Balance		0.03%		0.00%		0.37%		1.16%		1.56%
			# Loans		1		0		9		39		49
			% # Loans		0.03%		0.00%		0.31%		1.35%		1.69%
	BANKRUPTCY		Balance		1,432,991.17		0.00		0.00		1,198,212.18		2,631,203.35
			% Balance		0.36%		0.00%		0.00%		0.30%		0.65%
			# Loans		12		0		0		9		21
			% # Loans		0.41%		0.00%		0.00%		0.31%		0.73%
	REO		Balance		0.00		0.00		0.00		413,798.57		413,798.57
			% Balance		0.00%		0.00%		0.00%		0.10%		0.10%
			# Loans		0		0		0		3		3
			% # Loans		0.00%		0.00%		0.00%		0.10%		0.10%
	TOTAL		Balance		1,556,315.38		11,089,825.07		3,547,923.23		7,782,966.40		23,977,030.08
			% Balance		0.39%		2.75%		0.88%		1.93%		5.95%
			# Loans		13		84		27		63		187
			% # Loans		0.45%		2.90%		0.93%		2.18%		6.46%










Page 13 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

	GROUP 2
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				10,678,511.52		3,037,957.00		2,201,284.40		15,917,752.92
			% Balance				2.73%		0.78%		0.56%		4.07%
			# Loans				63		16		10		89
			% # Loans				2.74%		0.70%		0.44%		3.87%
	FORECLOSURE		Balance		0.00		0.00		1,022,604.48		2,636,514.70		3,659,119.18
			% Balance		0.00%		0.00%		0.26%		0.67%		0.93%
			# Loans		0		0		5		18		23
			% # Loans		0.00%		0.00%		0.22%		0.78%		1.00%
	BANKRUPTCY		Balance		1,096,371.66		285,057.16		465,789.16		378,734.88		2,225,952.86
			% Balance		0.28%		0.07%		0.12%		0.10%		0.57%
			# Loans		8		2		2		3		15
			% # Loans		0.35%		0.09%		0.09%		0.13%		0.65%
	REO		Balance		0.00		0.00		0.00		696,997.39		696,997.39
			% Balance		0.00%		0.00%		0.00%		0.18%		0.18%
			# Loans		0		0		0		4		4
			% # Loans		0.00%		0.00%		0.00%		0.17%		0.17%
	TOTAL		Balance		1,096,371.66		10,963,568.68		4,526,350.64		5,913,531.37		22,499,822.35
			% Balance		0.28%		2.80%		1.16%		1.51%		5.75%
			# Loans		8		65		23		35		131
			% # Loans		0.35%		2.83%		1.00%		1.52%		5.70%










Page 14 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

	GROUP 3
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				12,777,236.16		1,891,066.53		1,941,161.63		16,609,464.32
			% Balance				2.76%		0.41%		0.42%		3.59%
			# Loans				80		15		12		107
			% # Loans				2.86%		0.54%		0.43%		3.82%
	FORECLOSURE		Balance		198,088.68		0.00		386,631.81		4,993,207.03		5,577,927.52
			% Balance		0.04%		0.00%		0.08%		1.08%		1.21%
			# Loans		1		0		3		37		41
			% # Loans		0.04%		0.00%		0.11%		1.32%		1.46%
	BANKRUPTCY		Balance		833,412.04		73,778.96		219,915.11		864,851.98		1,991,958.09
			% Balance		0.18%		0.02%		0.05%		0.19%		0.43%
			# Loans		10		1		2		5		18
			% # Loans		0.36%		0.04%		0.07%		0.18%		0.64%
	REO		Balance		0.00		0.00		0.00		500,781.27		500,781.27
			% Balance		0.00%		0.00%		0.00%		0.11%		0.11%
			# Loans		0		0		0		5		5
			% # Loans		0.00%		0.00%		0.00%		0.18%		0.18%
	TOTAL		Balance		1,031,500.72		12,851,015.12		2,497,613.45		#######		24,680,131.20
			% Balance		0.22%		2.78%		0.54%		1.79%		5.34%
			# Loans		11		81		20		59		171
			% # Loans		0.39%		2.89%		0.71%		2.11%		6.11%









Page 15 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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
1911736 1
			171,000.00		169,487.41		01-Mar-2005		7.250%		MO - 90.00%		360		01-Dec-2004

38268436 1			89,352.00		88,513.60		06-Mar-2005		7.015%		NC - 79.78%		360		01-Nov-2004
38283678 1			157,250.00		155,797.56		01-Mar-2005		7.490%		MI - 85.00%		360		01-Nov-2004
38259467 2			113,600.00		112,866.27		01-Dec-2004		9.275%		MI - 80.00%		360		01-Nov-2004
38260435 2			262,400.00		262,400.00		01-Dec-2004		7.500%		GA - 80.00%		360		01-Nov-2004
38683208 2			85,000.00		84,414.13		01-Mar-2005		8.509%		MI - 83.33%		360		01-Dec-2004
38684081 2			240,000.00		237,316.99		01-Feb-2005		6.500%		MI - 80.00%		360		01-Nov-2004
38256226 3			82,400.00		81,801.66		01-Apr-2005		8.250%		TX - 80.00%		360		01-Nov-2004
38260211 3			82,400.00		81,745.00		01-Mar-2005		8.250%		TX - 80.00%		360		01-Nov-2004
38261091 3			80,100.00		79,491.51		01-Feb-2005		8.699%		GA - 90.00%		360		01-Nov-2004
38277341 3			84,600.00		84,169.24		05-Nov-2004		9.990%		FL - 90.00%		360		01-Nov-2004
38683657 3			175,000.00		173,573.86		01-Jan-2005		8.125%		GA - 100.00%		360		01-Nov-2004


TOTAL			1,623,102.00		1,611,577.23


Page 16 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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
1838113 1
			57,600.00		57,344.07		01-Apr-2005		11.500%		CA - 20.00%		360		01-Nov-2004

1869230 1			186,300.02		186,300.02		01-Feb-2005		7.900%		MN - 90.00%		360		01-Dec-2004
1878206 1			99,920.00		99,920.00		01-Jun-2005		6.150%		CO - 80.00%		360		01-Dec-2004
1922971 1			304,000.00		304,000.00		01-Jan-2005		6.950%		TX - 80.00%		360		01-Dec-2004
1925724 1			238,000.00		235,898.15		01-Mar-2005		6.750%		MA - 70.00%		360		01-Jan-2005
11071846 1			63,200.00		62,624.51		01-Mar-2005		7.100%		FL - 80.00%		360		01-Dec-2004
31029860 1			119,000.00		118,250.00		01-May-2005		8.950%		CA - 26.15%		360		01-Dec-2004
38257850 1			45,000.00		44,730.98		01-May-2005		9.650%		FL - 90.00%		360		01-Nov-2004
38259523 1			91,800.00		91,212.03		01-Apr-2005		10.200%		IL - 90.00%		360		01-Nov-2004
38268204 1			49,999.50		49,653.59		30-May-2005		8.940%		VA - 82.64%		360		01-Oct-2004
38268484 1			103,959.20		102,941.23		28-Feb-2005		7.190%		NC - 79.97%		360		01-Oct-2004
38268844 1			135,150.00		134,224.16		08-Jun-2005		8.540%		TN - 85.00%		360		01-Nov-2004
38268852 1			122,400.00		121,261.39		05-Mar-2005		6.990%		SC - 80.00%		360		01-Nov-2004
38269060 1			134,800.00		133,533.83		14-Jun-2005		6.940%		NC - 78.37%		360		01-Nov-2004
38269604 1			64,000.00		63,619.59		18-Jan-2005		9.240%		TN - 71.91%		360		01-Nov-2004
38270460 1			192,000.00		190,213.89		13-Feb-2005		6.990%		FL - 80.00%		360		01-Nov-2004
38271644 1			146,700.00		145,240.42		11-Apr-2005		6.640%		OH - 90.00%		360		01-Nov-2004
38273108 1			210,400.00		208,095.89		01-May-2005		6.290%		IL - 80.00%		360		01-Dec-2004
38273764 1			88,800.00		87,882.22		01-Apr-2005		6.440%		IL - 80.00%		360		01-Dec-2004
38274781 1			268,000.00		265,027.14		28-Apr-2005		6.540%		NY - 80.00%		360		01-Oct-2004
38275037 1			276,000.00		272,938.33		13-Jun-2005		6.065%		CT - 79.31%		360		01-Nov-2004
38275357 1			156,000.00		154,433.05		01-Apr-2005		6.590%		CO - 80.00%		360		01-Dec-2004
38278565 1			77,600.00		76,842.56		08-May-2005		6.740%		IL - 78.38%		360		01-Nov-2004
38283630 1			65,586.00		65,233.53		01-Jun-2005		9.740%		MI - 74.53%		360		01-Dec-2004
38285318 1			282,488.00		280,533.48		01-May-2005		8.490%		NV - 79.57%		360		01-Dec-2004
38285494 1			104,000.00		103,273.08		01-Feb-2005		8.440%		OR - 80.00%		360		01-Dec-2004
38286318 1			196,000.00		194,246.02		01-Jun-2005		7.190%		CA - 80.00%		360		01-Dec-2004
38286462 1			127,500.00		126,652.71		15-Mar-2005		8.690%		TN - 85.00%		360		01-Nov-2004
38286782 1			124,800.00		123,742.52		01-Mar-2005		7.470%		FL - 80.00%		360		01-Dec-2004
38680888 1			80,000.00		79,533.32		01-May-2005		9.490%		IN - 89.89%		360		01-Dec-2004
38681392 1			101,250.00		100,585.27		01-Apr-2005		8.750%		NY - 75.00%		360		01-Dec-2004
38687329 1			165,000.00		164,160.95		01-Jan-2005		9.990%		OK - 75.00%		360		01-Dec-2004
38689169 1			135,120.00		134,276.96		01-Jan-2005		9.000%		IL - 80.00%		360		01-Dec-2004
41062517 1			124,100.00		123,324.21		01-Dec-2005		8.990%		IL - 85.00%		360		01-Dec-2004
61055185 1			115,200.00		114,210.44		01-Jun-2005		7.400%		OH - 80.00%		360		01-Dec-2004
121035728 1			54,000.00		53,662.39		01-Feb-2005		8.990%		MN - 51.43%		360		01-Dec-2004
141043046 1			125,000.00		124,161.18		01-Jan-2005		8.150%		NY - 78.13%		360		01-Jan-2005
271016636 1			91,000.00		90,225.94		01-Apr-2005		7.450%		MN - 70.00%		360		01-Dec-2004
321021030 1			171,000.00		169,438.98		01-Jun-2005		7.550%		CO - 95.00%		360		01-Nov-2004
351022024 1			55,250.00		55,088.23		01-Mar-2005		12.100%		TX - 65.00%		360		01-Jan-2005
371022045 1			112,500.00		111,624.87		01-Apr-2005		8.150%		FL - 90.00%		360		01-Dec-2004
551003609 1			103,500.00		102,806.71		01-Apr-2005		8.650%		OK - 90.00%		360		01-Dec-2004
651006267 1			52,000.00		51,662.13		01-Feb-2005		8.800%		SC - 80.00%		360		01-Dec-2004
731007520 1			306,000.00		303,659.99		01-Jun-2005		7.990%		GA - 85.00%		360		01-Dec-2004
741008253 1			64,000.00		61,699.83		01-Apr-2005		6.950%		MS - 80.00%		180		01-Dec-2004
741008269 1			70,200.00		69,529.15		01-Feb-2005		6.850%		OH - 90.00%		360		01-Dec-2004
741008367 1			100,000.00		99,219.35		01-Apr-2005		7.900%		KY - 91.74%		360		01-Dec-2004
841001310 1			63,000.00		62,598.81		01-Mar-2005		8.900%		MI - 70.00%		360		01-Dec-2004
841001404 1			127,500.00		126,416.95		01-Mar-2005		7.500%		MI - 82.79%		360		01-Dec-2004


Page 17 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

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
1822968 2
			58,400.00		58,007.17		01-Apr-2005		8.950%		MI - 73.00%		360		01-Dec-2004

1833055 2			33,600.00		33,021.18		01-Apr-2005		10.250%		MT - 20.00%		240		01-Nov-2004
1842936 2			41,200.00		40,547.54		01-Apr-2005		10.350%		CA - 20.00%		240		01-Nov-2004
1853431 2			30,800.00		30,400.51		01-Mar-2005		11.200%		CO - 20.00%		240		01-Dec-2004
1895226 2			293,840.00		290,383.20		01-Jun-2005		5.750%		OK - 80.00%		360		01-Dec-2004
1904309 2			170,000.00		169,105.26		01-Jun-2005		9.825%		NV - 69.39%		360		01-Dec-2004
1908451 2			272,000.00		270,452.72		01-Apr-2005		9.450%		OH - 85.00%		360		01-Dec-2004
38256306 2			112,500.00		111,729.72		01-Apr-2005		8.990%		TX - 75.00%		360		01-Nov-2004
38257746 2			165,000.00		163,837.10		01-Jun-2005		8.850%		IL - 100.00%		360		01-Nov-2004
38258595 2			125,896.00		124,459.01		01-Mar-2005		6.825%		SC - 80.00%		360		01-Oct-2004
38259299 2			301,600.00		299,132.15		01-Jun-2005		8.250%		MA - 80.00%		360		01-Nov-2004
38259619 2			123,250.00		122,168.22		01-Apr-2005		7.750%		RI - 79.52%		360		01-Nov-2004
38260363 2			100,800.00		100,146.77		01-Jun-2005		9.259%		MI - 70.00%		360		01-Nov-2004
38688313 2			233,750.00		231,921.27		01-Apr-2005		7.875%		CA - 85.00%		360		01-Dec-2004
38688881 2			99,200.00		98,301.66		01-Feb-2005		7.129%		IN - 80.00%		360		01-Dec-2004
161037575 2			248,250.00		245,808.38		01-Apr-2005		6.700%		MA - 75.00%		360		01-Dec-2004
211024589 2			171,000.00		169,895.39		01-Apr-2005		8.340%		NC - 90.00%		360		01-Jan-2005
231055996 2			180,000.00		178,376.68		01-Jan-2005		7.150%		PA - 80.00%		360		01-Dec-2004
321021417 2			264,000.00		261,749.93		01-Feb-2005		7.440%		CO - 80.00%		360		01-Dec-2004
321021473 2			166,500.00		165,266.75		01-Mar-2005		8.150%		UT - 90.00%		360		01-Dec-2004
331030523 2			197,400.00		195,197.90		01-May-2005		6.990%		NY - 75.92%		360		01-Dec-2004
651005867 2			155,000.00		153,961.69		01-Apr-2005		8.650%		RI - 67.39%		360		01-Dec-2004
651006136 2			146,400.00		145,248.98		01-May-2005		7.850%		FL - 80.00%		360		01-Dec-2004
1809138 3			361,250.00		359,108.60		01-Dec-2004		9.250%		NY - 85.00%		360		01-Dec-2004
1896814 3			420,000.00		416,284.98		01-May-2005		7.250%		CA - 84.00%		360		01-Dec-2004
38255834 3			141,714.00		140,745.51		01-Jun-2005		8.999%		IN - 90.00%		360		01-Nov-2004
38255866 3			127,500.00		126,127.80		01-Apr-2005		6.699%		WA - 85.00%		360		01-Nov-2004
38256250 3			218,000.00		215,867.68		01-Apr-2005		7.200%		CA - 80.00%		360		01-Nov-2004
38256442 3			143,200.00		141,943.04		01-May-2005		7.750%		NY - 80.00%		360		01-Nov-2004
38257882 3			86,700.00		86,010.88		01-Mar-2005		8.250%		TN - 85.00%		360		01-Nov-2004
38258491 3			105,000.00		102,562.58		01-Feb-2005		6.500%		FL - 76.09%		360		01-Sep-2004
38259995 3			136,000.00		134,677.19		01-Apr-2005		7.250%		PA - 80.00%		360		01-Nov-2004
38270780 3			78,000.00		77,342.93		06-Dec-2004		7.500%		DE - 55.71%		360		01-Nov-2004
38270924 3			71,400.00		70,809.06		09-Feb-2005		7.590%		DE - 85.00%		360		01-Nov-2004
38271452 3			117,000.00		116,105.28		20-Feb-2005		7.990%		PA - 90.00%		360		01-Nov-2004
38271732 3			98,100.00		97,247.33		03-Mar-2005		7.340%		IN - 90.00%		360		01-Nov-2004
38271956 3			72,165.00		71,694.83		21-Mar-2005		8.790%		IN - 84.90%		360		01-Nov-2004
38272060 3			90,000.00		89,311.67		01-Mar-2005		7.990%		OH - 100.00%		360		01-Dec-2004
38272148 3			109,020.00		108,331.42		19-Feb-2005		8.940%		OH - 79.00%		360		01-Nov-2004
38272868 3			298,400.00		295,729.60		14-Mar-2005		7.190%		FL - 80.00%		360		01-Nov-2004
38273252 3			170,000.00		168,307.34		01-Dec-2004		7.440%		WI - 85.00%		360		01-Nov-2004
38273612 3			68,000.00		67,529.51		01-Jun-2005		8.490%		WI - 80.00%		360		01-Dec-2004
38273772 3			164,610.00		163,243.13		01-Apr-2005		7.590%		IL - 89.46%		360		01-Dec-2004
38274421 3			97,600.00		96,800.10		05-May-2005		7.640%		MI - 80.00%		360		01-Nov-2004
38275077 3			320,000.00		317,617.78		13-Feb-2005		8.125%		MA - 80.00%		360		01-Nov-2004
38275229 3			207,920.00		206,130.44		18-Mar-2005		7.390%		MA - 79.97%		360		01-Nov-2004
38278429 3			135,200.00		134,176.10		04-Feb-2005		8.040%		SD - 80.00%		360		01-Nov-2004
38278661 3			50,000.00		49,656.04		12-May-2005		8.740%		NE - 78.74%		360		01-Nov-2004
38279605 3			180,000.00		178,356.79		01-Jun-2005		7.550%		TX - 80.00%		360		01-Nov-2004
38279997 3			117,600.00		116,473.78		15-Dec-2004		6.840%		GA - 79.46%		360		01-Nov-2004
38280253 3			176,256.00		174,696.97		19-Apr-2005		7.250%		NJ - 78.34%		360		01-Nov-2004


Page 18 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

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
38281453 3
			104,000.00		102,403.64		26-Feb-2005		6.990%		NC - 84.90%		360		01-Nov-2004

38281901 3			92,200.00		91,623.56		01-Mar-2005		8.990%		OH - 74.35%		360		01-Dec-2004
38282462 3			60,800.00		60,383.48		25-May-2005		8.540%		IN - 76.00%		360		01-Nov-2004
38282726 3			60,550.00		60,033.92		28-Dec-2004		7.440%		IN - 70.00%		360		01-Nov-2004
38688569 3			124,900.00		123,893.11		01-Apr-2005		8.599%		OH - 100.00%		360		01-Oct-2004
131028600 3			85,500.00		85,003.54		01-Apr-2005		9.350%		KY - 94.27%		360		01-Dec-2004
161036275 3			130,400.00		129,016.13		01-Feb-2005		6.300%		NH - 80.00%		360		01-Dec-2004
261049243 3			68,250.00		67,931.22		01-May-2005		9.920%		LA - 75.00%		360		01-Jan-2005
271017680 3			99,655.00		98,855.84		01-Mar-2005		7.750%		MN - 95.00%		360		01-Dec-2004
321021776 3			81,500.00		81,228.00		01-May-2005		11.500%		UT - 20.00%		360		01-Jan-2005
661002676 3			200,000.00		198,088.68		01-Sep-2005		6.850%		CA - 72.73%		360		01-Dec-2004
831027453 3			50,000.00		48,114.11		01-Mar-2005		9.350%		CA - 6.67%		180		01-Sep-2004
841001425 3			109,250.00		108,463.93		01-Apr-2005		7.800%		MI - 95.00%		360		01-Jan-2005


TOTAL			15,664,648.72		15,534,800.75


Page 19 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS


									Group 3		Group 2		Group 1		Total




Current


Number of Paid in Full Loans								95		103		91		289
Number of Repurchased Loans								0		0		0		0
Total Number of Loans Prepaid in Full								95		103		91		289
Curtailments Amount								-6,797.65		11,678.94		20,792.41		25,673.70
Paid in Full Balance								19,959,378.33		17,711,111.62		15,460,956.09		53,131,446.04
Repurchased Loans Balance								0.00		0.00		0.00		0.00
Total Prepayment Amount								19,952,580.68		17,722,790.56		15,481,748.50		53,157,119.74

Cumulative


Number of Paid in Full Loans								568		567		584		1,719
Number of Repurchased Loans								2		1		0		3
Total Number of Loans Prepaid in Full								570		568		584		1,722
Paid in Full Balance								122,475,117.75		105,558,225.67		93,972,008.95		322,005,352.37
Repurchased Loans Balance								502,879.82		65,328.97		0.00		568,208.79
Curtailments Amount								406,669.98		155,464.98		198,203.54		760,338.50
Total Prepayment Amount								123,384,667.55		105,779,019.62		94,170,212.49		323,333,899.66










Page 20 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution

VOLUNTARY PREPAYMENTS RATES


									Group 3		Group 2		Group 1		Total



SMM								4.14%		4.37%		3.76%		4.09%
3 Months Avg SMM								3.97%		4.10%		3.73%		3.94%
12 Months Avg SMM								3.32%		3.36%		2.96%		3.22%
Avg SMM Since Cut-off								3.32%		3.36%		2.96%		3.22%


CPR								39.76%		41.50%		36.89%		39.41%
3 Months Avg CPR								38.53%		39.52%		36.61%		38.24%
12 Months Avg CPR								33.28%		33.62%		30.30%		32.45%
Avg CPR Since Cut-off								33.28%		33.62%		30.30%		32.45%


PSA								1,750.36%		1,847.08%		1,628.81%		1,742.62%
3 Months Avg PSA Approximation								1,859.24%		1,930.63%		1,774.02%		1,854.66%
12 Months Avg PSA Approximation								1,988.81%		2,040.65%		1,820.51%		1,952.32%
Avg PSA Since Cut-off Approximation								1,988.80%		2,040.65%		1,820.51%		1,952.32%










Page 21 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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 22 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

1794873 2			68,400.00		68,106.70			28-Sep-2005		11.750%		MD - 20.00%		Paid Off - 360		01-Oct-2004


1833718 2			70,000.00		68,993.72			27-Sep-2005		10.400%		CA - 20.00%		Paid Off - 240		01-Nov-2004

1833801 3			87,000.00		86,540.79			29-Sep-2005		10.250%		CA - 20.00%		Paid Off - 360		01-Oct-2004

1834133 3			100,000.00		99,528.48			05-Oct-2005		10.350%		MA - 20.00%		Paid Off - 360		01-Nov-2004

1835910 3			84,000.00		83,592.66			03-Oct-2005		10.250%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1838984 3			77,000.00		76,640.77			03-Oct-2005		10.400%		IL - 20.00%		Paid Off - 360		01-Nov-2004

1839189 2			48,069.00		47,360.89			29-Sep-2005		10.200%		NY - 20.00%		Paid Off - 240		01-Nov-2004

1841755 3			72,000.00		71,645.47			28-Sep-2005		10.150%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1842338 3			83,000.00		82,656.81			16-Sep-2005		10.500%		CA - 20.00%		Paid Off - 360		01-Dec-2004

1843438 1			170,000.00		168,637.20			22-Sep-2005		7.250%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1844181 3			78,257.00		77,879.06			05-Oct-2005		10.990%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1845039 2			350,000.00		349,999.98			20-Sep-2005		6.875%		CA - 82.35%		Paid Off - 300		01-Dec-2004

1845878 1			254,520.00		254,520.00			27-Sep-2005		7.425%		NY - 84.84%		Paid Off - 360		01-Nov-2004

1846319 2			200,000.00		198,070.16			11-Oct-2005		6.800%		CA - 66.67%		Paid Off - 360		01-Nov-2004

1847691 1			54,754.00		54,422.67			16-Sep-2005		9.150%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1847717 2			62,600.00		62,290.66			20-Sep-2005		9.650%		CA - 20.00%		Paid Off - 360		01-Dec-2004

1847943 3			367,000.00		365,255.93			11-Oct-2005		6.875%		CA - 74.14%		Paid Off - 300		01-Dec-2004

1848597 2			84,000.00		83,731.68			20-Sep-2005		12.225%		SC - 70.00%		Paid Off - 360		01-Nov-2004

1850561 2			348,750.00		345,519.26			26-Sep-2005		6.500%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

1852563 2			252,000.00		249,209.92			26-Sep-2005		5.550%		DC - 72.00%		Paid Off - 360		01-Dec-2004

1860572 1			307,000.00		305,133.52			16-Sep-2005		8.100%		NJ - 94.46%		Paid Off - 360		01-Jan-2005

1863870 1			160,000.00		157,283.91			22-Sep-2005		8.250%		NJ - 61.54%		Paid Off - 240		01-Dec-2004

1865240 3			424,000.00		423,876.50			13-Oct-2005		6.950%		CA - 81.54%		Paid Off - 360		01-Nov-2004

1866484 2			145,000.00		143,719.48			07-Oct-2005		6.750%		CA - 56.86%		Paid Off - 360		01-Dec-2004

1867024 1			80,800.00		80,787.66			29-Sep-2005		6.050%		FL - 80.00%		Paid Off - 360		01-Dec-2004

1869318 2			146,200.00		145,027.89			14-Oct-2005		7.250%		AZ - 85.00%		Paid Off - 360		01-Dec-2004

1876806 2			66,000.00		65,394.99			29-Sep-2005		6.750%		IN - 78.57%		Paid Off - 360		01-Dec-2004

1877333 2			145,000.00		143,903.95			20-Sep-2005		7.550%		NY - 58.00%		Paid Off - 360		01-Dec-2004

1880669 3			90,000.00		88,656.92			23-Sep-2005		10.100%		CA - 20.00%		Paid Off - 240		01-Nov-2004

1885573 2			213,750.00		211,951.12			13-Oct-2005		7.000%		MD - 95.00%		Paid Off - 360		01-Dec-2004

1886795 1			110,700.00		109,932.46			03-Oct-2005		7.990%		AZ - 90.00%		Paid Off - 360		01-Dec-2004

1888414 1			134,000.00		132,635.58			22-Sep-2005		6.000%		CA - 70.53%		Paid Off - 360		01-Dec-2004

1889827 2			182,000.00		180,939.58			14-Oct-2005		8.850%		CA - 70.00%		Paid Off - 360		01-Dec-2004

1890321 3			391,000.00		387,709.57			04-Oct-2005		7.000%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1890460 3			470,000.00		467,060.17			22-Sep-2005		8.500%		VA - 74.02%		Paid Off - 360		01-Dec-2004

1892287 2			80,000.00		79,993.59			28-Sep-2005		6.200%		NM - 80.00%		Paid Off - 360		01-Dec-2004

1893010 2			190,000.00		189,999.44			14-Oct-2005		6.950%		CA - 79.17%		Paid Off - 360		01-Nov-2004



Page 23 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

1893025 1			50,000.00		49,794.13			14-Oct-2005		10.990%		CA - 20.83%		Paid Off - 360		01-Nov-2004


1893050 2			216,000.00		213,586.34			29-Sep-2005		5.500%		CA - 90.00%		Paid Off - 360		01-Dec-2004

1893944 2			134,360.00		134,360.00			21-Sep-2005		6.850%		CA - 80.00%		Paid Off - 360		01-Dec-2004

1894012 2			153,000.00		152,170.16			04-Oct-2005		9.200%		MI - 85.00%		Paid Off - 360		01-Dec-2004

1894272 1			234,000.00		231,336.62			04-Oct-2005		5.400%		CA - 73.13%		Paid Off - 360		01-Dec-2004

1894552 3			481,100.00		481,100.00			20-Sep-2005		6.875%		CA - 85.00%		Paid Off - 300		01-Dec-2004

1896028 2			181,600.00		181,592.99			12-Oct-2005		7.050%		HI - 80.00%		Paid Off - 360		01-Nov-2004

1896844 2			288,000.00		285,172.34			29-Sep-2005		7.100%		CA - 93.20%		Paid Off - 360		01-Dec-2004

1903599 3			616,000.00		608,859.09			29-Sep-2005		5.300%		CA - 80.00%		Paid Off - 360		01-Dec-2004

1904767 3			391,000.00		388,015.22			03-Oct-2005		7.500%		NJ - 88.86%		Paid Off - 360		01-Dec-2004

1905120 3			186,400.00		184,644.71			29-Sep-2005		6.750%		AZ - 80.00%		Paid Off - 360		01-Dec-2004

1908219 1			214,500.00		212,168.60			22-Sep-2005		5.650%		FL - 84.95%		Paid Off - 360		01-Dec-2004

1911153 1			306,000.00		302,026.51			16-Sep-2005		5.550%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1916400 3			156,000.00		154,910.51			14-Oct-2005		7.950%		CA - 80.00%		Paid Off - 360		01-Dec-2004

1916779 1			22,900.00		22,617.04			26-Sep-2005		10.800%		NM - 20.00%		Paid Off - 240		01-Dec-2004

1917144 2			91,600.00		90,763.49			26-Sep-2005		6.575%		NM - 80.00%		Paid Off - 360		01-Dec-2004

1919143 1			142,200.00		141,263.26			21-Sep-2005		8.250%		AZ - 90.00%		Paid Off - 360		01-Dec-2004

1919900 2			238,000.00		229,765.11			12-Oct-2005		6.200%		HI - 37.78%		Paid Off - 180		01-Dec-2004

1920524 1			153,000.00		151,899.08			27-Sep-2005		7.800%		FL - 100.00%		Paid Off - 360		01-Dec-2004

1936445 1			276,000.00		272,972.37			22-Sep-2005		5.600%		NY - 78.86%		Paid Off - 360		01-Dec-2004

1941755 2			193,800.00		193,745.88			07-Oct-2005		6.875%		CA - 85.00%		Paid Off - 300		01-Dec-2004

11069435 2			300,000.00		296,957.91			01-Sep-2005		6.540%		CA - 75.00%		Paid Off - 360		01-Nov-2004

11071381 2			304,000.00		301,366.48			22-Sep-2005		6.850%		VA - 80.00%		Paid Off - 360		01-Dec-2004

11071382 3			76,000.00		75,769.88			22-Sep-2005		11.990%		VA - 20.00%		Paid Off - 360		01-Dec-2004

11071575 1			304,000.00		301,939.48			21-Sep-2005		8.100%		CA - 69.89%		Paid Off - 360		01-Dec-2004

11071718 1			359,400.00		356,574.55			28-Sep-2005		7.350%		CA - 79.99%		Paid Off - 360		01-Dec-2004

22242496 3			360,000.00		359,792.33			23-Sep-2005		6.875%		CA - 80.00%		Paid Off - 360		01-May-2004

31029964 3			296,000.00		294,068.58			13-Sep-2005		8.290%		CA - 80.00%		Paid Off - 360		01-Dec-2004

31029981 3			440,000.00		437,219.98			26-Sep-2005		8.450%		CA - 79.64%		Paid Off - 360		01-Dec-2004

37853846 1			125,040.00		123,481.27			12-Sep-2005		7.250%		CT - 80.00%		Paid Off - 360		01-Oct-2004

38032510 1			56,950.00		56,612.61			01-Sep-2005		9.350%		WI - 85.00%		Paid Off - 360		01-Nov-2004

38256458 3			280,000.00		277,361.66			12-Sep-2005		6.990%		VA - 80.00%		Paid Off - 360		01-Nov-2004

38257170 2			89,000.00		88,179.44			26-Sep-2005		7.500%		CT - 94.68%		Paid Off - 360		01-Oct-2004

38257242 2			203,200.00		203,199.98			14-Sep-2005		6.490%		CA - 80.00%		Paid Off - 360		01-Oct-2004

38257250 3			253,000.00		250,969.47			20-Sep-2005		7.750%		VA - 74.41%		Paid Off - 360		01-Nov-2004

38257546 3			85,600.00		84,989.80			06-Sep-2005		8.350%		GA - 86.38%		Paid Off - 360		01-Nov-2004

38257658 2			120,000.00		119,082.25			29-Sep-2005		7.990%		CT - 80.00%		Paid Off - 360		01-Nov-2004

38258107 2			101,565.00		100,911.64			14-Sep-2005		8.850%		TX - 100.00%		Paid Off - 360		01-Nov-2004



Page 24 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

38258979 2			150,400.00		149,193.43			07-Sep-2005		7.750%		VA - 80.00%		Paid Off - 360		01-Nov-2004


38259011 2			179,200.00		177,829.62			14-Sep-2005		7.990%		WV - 80.00%		Paid Off - 360		01-Nov-2004

38259043 3			63,000.00		62,519.08			13-Sep-2005		7.999%		GA - 80.77%		Paid Off - 360		01-Nov-2004

38259051 2			104,000.00		103,263.55			08-Sep-2005		8.375%		FL - 80.00%		Paid Off - 360		01-Nov-2004

38259507 2			204,000.00		202,438.66			02-Sep-2005		8.000%		NV - 85.00%		Paid Off - 360		01-Nov-2004

38259659 2			112,000.00		111,054.84			16-Sep-2005		7.500%		AZ - 80.00%		Paid Off - 360		01-Nov-2004

38259755 2			170,000.00		168,807.25			21-Sep-2005		8.500%		MD - 68.00%		Paid Off - 360		01-Nov-2004

38259827 3			140,250.00		139,373.14			20-Sep-2005		8.990%		PA - 85.00%		Paid Off - 360		01-Nov-2004

38259843 2			124,968.00		122,995.99			27-Sep-2005		6.750%		FL - 80.00%		Paid Off - 360		01-Oct-2004

38259971 2			76,000.00		75,293.03			01-Sep-2005		6.990%		NJ - 80.00%		Paid Off - 360		01-Nov-2004

38260083 2			79,200.00		78,537.09			15-Sep-2005		7.990%		AL - 80.00%		Paid Off - 360		01-Oct-2004

38260091 2			152,150.00		150,653.44			20-Sep-2005		6.700%		DE - 85.00%		Paid Off - 360		01-Nov-2004

38260355 2			86,100.00		85,381.36			13-Sep-2005		8.500%		NJ - 70.00%		Paid Off - 360		01-Oct-2004

38260563 2			285,600.00		283,134.65			30-Sep-2005		7.375%		NJ - 80.00%		Paid Off - 360		01-Nov-2004

38260723 1			111,200.00		110,351.16			21-Sep-2005		7.999%		FL - 80.00%		Paid Off - 360		01-Nov-2004

38260963 3			106,000.00		105,170.64			28-Sep-2005		7.875%		OH - 80.00%		Paid Off - 360		01-Nov-2004

38261115 2			322,150.00		319,300.46			20-Sep-2005		7.250%		MD - 85.00%		Paid Off - 360		01-Nov-2004

38261131 3			381,900.00		381,696.72			26-Sep-2005		6.999%		IN - 95.00%		Paid Off - 360		01-Sep-2004

38268068 1			139,600.00		138,353.17			29-Sep-2005		7.200%		WV - 77.56%		Paid Off - 360		01-Nov-2004

38268092 1			120,700.00		119,785.76			21-Sep-2005		8.040%		VA - 85.00%		Paid Off - 360		01-Nov-2004

38269020 1			55,000.00		53,401.93			13-Sep-2005		8.290%		TN - 77.46%		Paid Off - 180		01-Nov-2004

38269108 1			92,000.00		91,154.16			06-Sep-2005		6.540%		GA - 80.00%		Paid Off - 360		01-Nov-2004

38269844 1			114,750.00		113,684.90			09-Sep-2005		6.490%		NC - 90.00%		Paid Off - 360		01-Nov-2004

38270972 1			225,000.00		222,704.66			09-Sep-2005		5.990%		MD - 74.50%		Paid Off - 360		01-Nov-2004

38271140 3			164,000.00		162,745.50			20-Sep-2005		7.490%		PA - 80.00%		Paid Off - 360		01-Nov-2004

38271532 3			395,250.00		392,085.67			07-Sep-2005		7.340%		KY - 85.00%		Paid Off - 360		01-Nov-2004

38272308 1			108,800.00		107,790.13			07-Sep-2005		6.490%		KY - 80.00%		Paid Off - 360		01-Nov-2004

38274045 3			72,000.00		71,501.14			22-Sep-2005		7.990%		MI - 75.00%		Paid Off - 360		01-Dec-2004

38274837 3			175,500.00		174,186.28			13-Sep-2005		7.600%		RI - 64.05%		Paid Off - 360		01-Nov-2004

38275341 3			97,750.00		96,956.72			20-Sep-2005		7.690%		OH - 82.84%		Paid Off - 360		01-Nov-2004

38275685 3			120,000.00		119,005.34			28-Sep-2005		7.100%		CA - 80.00%		Paid Off - 360		01-Dec-2004

38276373 1			162,400.00		159,923.07			28-Sep-2005		5.640%		WV - 80.00%		Paid Off - 360		01-Nov-2004

38276413 1			231,300.00		228,951.61			01-Sep-2005		6.540%		MD - 90.00%		Paid Off - 360		01-Nov-2004

38276493 1			232,000.00		229,005.02			26-Sep-2005		6.540%		MD - 80.00%		Paid Off - 360		01-Nov-2004

38276517 1			247,000.00		244,711.85			01-Sep-2005		6.500%		VA - 79.68%		Paid Off - 360		01-Nov-2004

38276813 3			105,300.00		104,533.24			14-Sep-2005		7.740%		MD - 76.30%		Paid Off - 360		01-Dec-2004

38277053 3			91,200.00		90,429.14			27-Sep-2005		6.990%		WA - 79.30%		Paid Off - 360		01-Dec-2004

38277229 3			144,000.00		142,619.25			09-Sep-2005		6.840%		FL - 86.75%		Paid Off - 360		01-Nov-2004



Page 25 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

38277973 3			129,200.00		128,136.27			16-Sep-2005		7.115%		AZ - 78.78%		Paid Off - 360		01-Dec-2004


38278037 3			128,000.00		127,147.86			07-Sep-2005		8.190%		AZ - 80.00%		Paid Off - 360		01-Dec-2004

38278077 3			205,200.00		203,006.30			14-Sep-2005		8.540%		AZ - 90.00%		Paid Off - 360		01-Dec-2004

38278597 3			255,500.00		253,260.92			29-Sep-2005		6.790%		MN - 70.00%		Paid Off - 360		01-Nov-2004

38279085 1			354,600.00		351,283.63			30-Sep-2005		6.450%		CA - 89.77%		Paid Off - 360		01-Dec-2004

38279941 3			272,000.00		269,882.43			26-Sep-2005		7.900%		GA - 80.00%		Paid Off - 360		01-Nov-2004

38280277 3			250,000.00		248,322.23			29-Sep-2005		8.150%		NJ - 74.63%		Paid Off - 360		01-Nov-2004

38280477 3			336,000.00		333,563.84			06-Sep-2005		7.765%		NY - 70.00%		Paid Off - 360		01-Nov-2004

38280613 1			143,500.00		142,036.05			07-Sep-2005		5.990%		NJ - 70.00%		Paid Off - 360		01-Nov-2004

38282158 3			153,000.00		151,993.60			14-Sep-2005		8.250%		VA - 79.27%		Paid Off - 360		01-Dec-2004

38282366 3			99,200.00		98,644.85			20-Sep-2005		9.500%		DE - 80.00%		Paid Off - 360		01-Dec-2004

38282502 3			87,200.00		86,435.84			16-Sep-2005		6.790%		OH - 80.00%		Paid Off - 360		01-Dec-2004

38282654 3			72,990.00		72,505.42			06-Sep-2005		8.690%		VA - 80.21%		Paid Off - 360		01-Nov-2004

38282750 1			107,000.00		106,044.12			01-Sep-2005		6.690%		FL - 64.85%		Paid Off - 360		01-Nov-2004

38283462 3			52,700.00		52,425.84			19-Sep-2005		9.840%		KS - 85.00%		Paid Off - 360		01-Dec-2004

38283502 1			105,000.00		103,415.71			26-Sep-2005		5.990%		WI - 70.00%		Paid Off - 360		01-Dec-2004

38283814 3			77,775.00		77,306.85			07-Sep-2005		8.690%		MI - 85.00%		Paid Off - 360		01-Nov-2004

38283926 1			280,000.00		277,616.15			01-Sep-2005		6.940%		MA - 47.86%		Paid Off - 360		01-Nov-2004

38284054 3			212,500.00		211,127.28			20-Sep-2005		8.340%		NH - 85.00%		Paid Off - 360		01-Nov-2004

38284326 1			210,000.00		208,424.99			01-Sep-2005		7.590%		CA - 77.78%		Paid Off - 360		01-Dec-2004

38284774 1			325,000.00		321,573.95			14-Sep-2005		5.815%		VA - 75.58%		Paid Off - 360		01-Dec-2004

38285446 3			470,400.00		465,601.29			01-Sep-2005		5.990%		CA - 80.00%		Paid Off - 360		01-Dec-2004

38285534 1			217,800.00		215,816.62			13-Sep-2005		6.590%		OR - 90.00%		Paid Off - 360		01-Dec-2004

38285926 1			200,000.00		198,108.00			14-Sep-2005		6.390%		MN - 80.00%		Paid Off - 360		01-Dec-2004

38285990 1			208,000.00		206,410.86			15-Sep-2005		6.940%		MN - 80.00%		Paid Off - 360		01-Dec-2004

38286070 1			226,100.00		224,064.56			22-Sep-2005		6.650%		CA - 85.00%		Paid Off - 360		01-Dec-2004

38286214 1			181,800.00		180,112.57			23-Sep-2005		6.490%		CA - 90.00%		Paid Off - 360		01-Dec-2004

38286534 3			500,000.00		495,203.01			08-Sep-2005		6.690%		NY - 76.10%		Paid Off - 360		01-Nov-2004

38286558 1			119,000.00		118,174.11			06-Sep-2005		7.990%		NJ - 85.00%		Paid Off - 360		01-Dec-2004

38286798 1			152,000.00		150,860.02			30-Sep-2005		7.590%		CA - 63.33%		Paid Off - 360		01-Dec-2004

38679792 2			152,800.00		151,523.26			26-Sep-2005		7.999%		FL - 80.00%		Paid Off - 360		01-Oct-2004

38679880 3			357,000.00		353,153.46			07-Sep-2005		7.125%		NY - 85.00%		Paid Off - 360		01-Sep-2004

38679920 3			87,500.00		86,359.25			13-Sep-2005		7.750%		VA - 100.00%		Paid Off - 360		01-Oct-2004

38680104 3			102,555.00		101,312.11			20-Sep-2005		8.200%		FL - 90.00%		Paid Off - 360		01-Dec-2004

38680144 1			131,750.00		130,883.34			14-Sep-2005		8.250%		CA - 85.00%		Paid Off - 360		01-Dec-2004

38680168 2			169,600.00		168,367.54			07-Sep-2005		7.750%		MN - 80.00%		Paid Off - 360		01-Dec-2004

38680264 1			320,000.00		317,557.18			28-Sep-2005		7.500%		CA - 77.11%		Paid Off - 360		01-Dec-2004

38680584 2			140,000.00		138,508.26			15-Sep-2005		7.950%		VA - 59.83%		Paid Off - 360		01-Dec-2004



Page 26 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

38680600 2			75,200.00		74,653.47			09-Sep-2005		7.750%		AL - 80.00%		Paid Off - 360		01-Dec-2004


38682000 1			212,000.00		209,836.98			16-Sep-2005		5.990%		CA - 80.00%		Paid Off - 360		01-Dec-2004

38682488 3			60,000.00		59,419.91			07-Sep-2005		6.500%		WA - 53.57%		Paid Off - 360		01-Dec-2004

38682688 2			116,010.00		115,065.01			21-Sep-2005		7.250%		FL - 90.00%		Paid Off - 360		01-Dec-2004

38682728 2			212,500.00		210,819.99			12-Sep-2005		7.650%		CA - 85.00%		Paid Off - 360		01-Dec-2004

38683048 1			220,000.00		218,317.24			29-Sep-2005		7.490%		NY - 80.00%		Paid Off - 360		01-Dec-2004

38683665 1			182,250.00		181,218.06			22-Sep-2005		8.990%		NJ - 90.00%		Paid Off - 360		01-Dec-2004

38683985 2			73,800.00		73,276.75			19-Sep-2005		7.875%		NY - 90.00%		Paid Off - 360		01-Dec-2004

38684617 2			293,250.00		290,777.30			13-Sep-2005		6.990%		NY - 85.00%		Paid Off - 360		01-Dec-2004

38684785 2			224,000.00		222,204.26			30-Sep-2005		7.250%		NJ - 80.00%		Paid Off - 360		01-Dec-2004

38684905 2			60,720.00		60,183.76			06-Sep-2005		6.750%		FL - 80.00%		Paid Off - 360		01-Dec-2004

38685137 2			152,998.00		151,226.41			26-Sep-2005		6.750%		AZ - 80.00%		Paid Off - 360		01-Sep-2004

38685185 1			256,000.00		253,840.49			16-Sep-2005		6.990%		VA - 80.00%		Paid Off - 360		01-Dec-2004

38685289 2			216,750.00		214,808.10			15-Sep-2005		6.675%		NJ - 85.00%		Paid Off - 360		01-Dec-2004

38685393 2			188,500.00		187,130.22			15-Sep-2005		7.750%		NJ - 78.54%		Paid Off - 360		01-Dec-2004

38685593 3			107,865.00		107,137.03			29-Sep-2005		8.250%		FL - 85.00%		Paid Off - 360		01-Dec-2004

38686121 2			79,200.00		78,751.49			21-Sep-2005		8.990%		TN - 80.00%		Paid Off - 360		01-Dec-2004

38686609 1			207,900.00		205,529.05			30-Sep-2005		7.990%		CA - 90.00%		Paid Off - 360		01-Dec-2004

38686697 3			82,800.00		82,331.11			09-Sep-2005		8.990%		TN - 90.00%		Paid Off - 360		01-Dec-2004

38686753 1			300,000.00		300,000.00			30-Sep-2005		6.875%		CA - 80.00%		Paid Off - 360		01-Dec-2004

38686809 2			228,000.00		226,386.46			26-Sep-2005		7.990%		NY - 80.00%		Paid Off - 360		01-Dec-2004

38687089 2			253,300.00		251,591.62			21-Sep-2005		8.125%		MD - 85.00%		Paid Off - 360		01-Dec-2004

38687297 1			240,000.00		238,234.51			13-Sep-2005		8.375%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

38687441 2			142,400.00		141,140.46			08-Sep-2005		7.250%		CA - 80.00%		Paid Off - 360		01-Nov-2004

38687761 2			184,500.00		182,870.47			20-Sep-2005		6.750%		FL - 90.00%		Paid Off - 360		01-Dec-2004

38687801 2			208,250.00		206,979.93			20-Sep-2005		8.625%		GA - 85.00%		Paid Off - 360		01-Dec-2004

38688097 2			111,500.00		110,606.12			30-Sep-2005		7.250%		CA - 87.11%		Paid Off - 360		01-Dec-2004

38688297 2			144,500.00		143,596.18			16-Sep-2005		8.500%		FL - 85.00%		Paid Off - 360		01-Dec-2004

38688633 2			155,700.00		153,553.06			09-Sep-2005		6.450%		NJ - 90.00%		Paid Off - 300		01-Dec-2004

38688649 2			111,156.00		109,796.69			06-Sep-2005		7.375%		AZ - 80.00%		Paid Off - 360		01-Oct-2004

41061811 2			188,500.00		187,183.55			26-Sep-2005		7.950%		IL - 65.00%		Paid Off - 360		01-Dec-2004

41062898 2			143,650.00		142,842.56			15-Sep-2005		8.490%		IL - 85.00%		Paid Off - 360		01-Jan-2005

71061338 2			141,100.00		140,102.78			08-Sep-2005		7.890%		FL - 85.00%		Paid Off - 360		01-Dec-2004

71062633 2			178,200.00		176,668.20			14-Sep-2005		6.890%		FL - 90.00%		Paid Off - 360		01-Dec-2004

71062794 3			390,000.00		387,022.84			12-Sep-2005		7.500%		FL - 66.10%		Paid Off - 360		01-Dec-2004

71062878 1			166,500.00		165,042.60			06-Sep-2005		8.600%		FL - 90.00%		Paid Off - 360		01-Dec-2004

71062982 1			67,000.00		66,610.38			19-Sep-2005		8.400%		FL - 39.41%		Paid Off - 360		01-Jan-2005

81051315 1			119,000.00		117,987.79			27-Sep-2005		7.450%		VA - 85.00%		Paid Off - 360		01-Nov-2004



Page 27 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

81051583 3			80,000.00		79,300.27			19-Sep-2005		6.800%		VA - 100.00%		Paid Off - 360		01-Dec-2004


81051771 1			288,750.00		286,997.87			23-Sep-2005		8.650%		VA - 75.00%		Paid Off - 360		01-Dec-2004

81051844 1			54,000.00		53,692.32			30-Sep-2005		8.990%		VA - 83.08%		Paid Off - 360		01-Dec-2004

81051852 1			132,500.00		131,583.77			02-Sep-2005		8.000%		VA - 50.00%		Paid Off - 360		01-Dec-2004

81051881 1			120,250.00		119,635.74			02-Sep-2005		9.490%		VA - 65.00%		Paid Off - 360		01-Dec-2004

81051949 2			276,000.00		274,729.52			13-Sep-2005		9.990%		MD - 73.40%		Paid Off - 360		01-Dec-2004

91028821 3			74,400.00		73,390.75			22-Sep-2005		6.500%		MO - 80.00%		Paid Off - 360		01-Nov-2004

101043794 1			50,000.00		49,602.30			07-Sep-2005		7.800%		FL - 59.52%		Paid Off - 360		01-Nov-2004

131028318 1			50,000.00		49,732.69			15-Sep-2005		9.750%		OH - 71.43%		Paid Off - 360		01-Nov-2004

141042808 2			172,900.00		172,097.39			14-Sep-2005		9.950%		CT - 70.00%		Paid Off - 360		01-Dec-2004

151026579 1			128,000.00		127,064.02			20-Sep-2005		8.050%		PA - 80.00%		Paid Off - 360		01-Dec-2004

161036983 2			225,000.00		222,974.56			27-Sep-2005		6.650%		RI - 60.00%		Paid Off - 360		01-Dec-2004

161036990 2			220,000.00		217,730.64			20-Sep-2005		6.450%		MA - 84.94%		Paid Off - 360		01-Nov-2004

161037098 3			137,600.00		136,198.95			26-Sep-2005		6.100%		MA - 61.16%		Paid Off - 360		01-Dec-2004

161037099 2			306,000.00		302,873.32			02-Sep-2005		6.500%		MA - 85.00%		Paid Off - 360		01-Nov-2004

161037285 3			108,000.00		106,930.88			28-Sep-2005		6.150%		NH - 80.00%		Paid Off - 360		01-Dec-2004

171022302 3			121,800.00		120,429.82			01-Sep-2005		5.990%		AZ - 70.00%		Paid Off - 360		01-Nov-2004

171022317 2			186,368.00		184,873.50			16-Sep-2005		7.750%		AZ - 85.00%		Paid Off - 360		01-Nov-2004

171022480 2			170,809.00		169,355.98			13-Sep-2005		7.450%		AZ - 85.00%		Paid Off - 360		01-Nov-2004

171022722 2			175,750.00		174,299.34			13-Sep-2005		7.100%		AZ - 95.00%		Paid Off - 360		01-Dec-2004

191020863 1			128,250.00		127,044.14			22-Sep-2005		7.940%		ID - 92.93%		Paid Off - 360		01-Dec-2004

211023279 2			216,000.00		214,315.13			09-Sep-2005		7.390%		GA - 90.00%		Paid Off - 360		01-Dec-2004

211023518 3			137,750.00		136,752.39			07-Sep-2005		7.300%		MD - 95.00%		Paid Off - 360		01-Jan-2005

211023924 2			238,500.00		236,945.32			02-Sep-2005		7.750%		MD - 78.20%		Paid Off - 360		01-Jan-2005

231056211 1			126,000.00		125,273.37			13-Sep-2005		8.900%		NY - 90.00%		Paid Off - 360		01-Dec-2004

231056388 1			132,800.00		131,443.65			01-Sep-2005		6.200%		ME - 80.00%		Paid Off - 360		01-Dec-2004

231056623 3			97,500.00		96,577.69			13-Sep-2005		6.390%		PA - 75.00%		Paid Off - 360		01-Dec-2004

231056769 2			171,000.00		169,615.74			21-Sep-2005		7.200%		NJ - 90.00%		Paid Off - 360		01-Dec-2004

231057097 2			295,600.00		292,728.56			27-Sep-2005		6.250%		NJ - 80.00%		Paid Off - 360		01-Dec-2004

231057424 3			91,200.00		90,288.64			08-Sep-2005		6.100%		CT - 80.00%		Paid Off - 360		01-Dec-2004

231057465 1			167,200.00		166,482.22			27-Sep-2005		9.800%		NJ - 95.00%		Paid Off - 360		01-Jan-2005

231057755 2			151,280.00		150,630.47			08-Sep-2005		10.000%		MA - 61.00%		Paid Off - 360		01-Jan-2005

231057766 3			100,000.00		99,172.61			22-Sep-2005		7.100%		MA - 46.08%		Paid Off - 360		01-Dec-2004

231057922 2			160,650.00		159,516.86			14-Sep-2005		7.900%		NJ - 85.00%		Paid Off - 360		01-Dec-2004

251033814 2			216,500.00		214,674.48			07-Sep-2005		6.990%		CA - 77.32%		Paid Off - 360		01-Dec-2004

251033978 1			352,000.00		349,906.99			29-Sep-2005		8.750%		CA - 76.52%		Paid Off - 360		01-Dec-2004

251034006 3			410,400.00		407,297.77			28-Sep-2005		7.550%		CA - 90.00%		Paid Off - 360		01-Dec-2004

251034027 2			161,000.00		159,682.04			07-Sep-2005		7.400%		CA - 94.71%		Paid Off - 360		01-Dec-2004



Page 28 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

261048271 3			80,750.00		80,180.26			02-Sep-2005		9.450%		FL - 85.00%		Paid Off - 360		01-Nov-2004


271016440 1			119,600.00		118,619.03			27-Sep-2005		7.700%		FL - 65.00%		Paid Off - 360		01-Dec-2004

271016476 3			72,000.00		71,318.54			28-Sep-2005		6.900%		NY - 72.00%		Paid Off - 360		01-Nov-2004

271016664 3			110,700.00		109,675.79			23-Sep-2005		7.250%		AZ - 90.00%		Paid Off - 360		01-Nov-2004

271017250 3			388,000.00		385,096.13			09-Sep-2005		7.050%		CA - 80.00%		Paid Off - 360		01-Jan-2005

271017501 2			212,500.00		210,829.40			20-Sep-2005		7.350%		MD - 85.00%		Paid Off - 360		01-Dec-2004

271017825 1			128,250.00		127,397.27			02-Sep-2005		7.650%		FL - 95.00%		Paid Off - 360		01-Jan-2005

311024382 2			183,750.00		182,305.40			20-Sep-2005		7.350%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

311024558 2			153,000.00		151,643.85			15-Sep-2005		6.990%		NJ - 85.00%		Paid Off - 360		01-Dec-2004

321021263 1			319,500.00		317,063.78			07-Sep-2005		6.950%		CO - 90.00%		Paid Off - 360		01-Jan-2005

331031039 3			626,850.00		622,023.68			01-Sep-2005		6.900%		NY - 90.00%		Paid Off - 360		01-Jan-2005

331031461 3			400,500.00		397,648.64			01-Sep-2005		8.100%		NY - 90.00%		Paid Off - 360		01-Jan-2005

341020053 2			175,750.00		174,268.10			28-Sep-2005		6.990%		NC - 95.00%		Paid Off - 360		01-Dec-2004

341020428 2			142,500.00		141,608.69			02-Sep-2005		8.500%		NC - 95.00%		Paid Off - 360		01-Dec-2004

371021365 1			52,200.00		51,856.68			21-Sep-2005		8.250%		FL - 90.00%		Paid Off - 360		01-Dec-2004

371021704 1			104,000.00		103,190.96			21-Sep-2005		8.600%		FL - 80.00%		Paid Off - 360		01-Jan-2005

371022180 3			71,250.00		70,798.97			02-Sep-2005		8.440%		FL - 95.00%		Paid Off - 360		01-Dec-2004

371022431 1			329,400.00		326,607.06			16-Sep-2005		7.400%		FL - 90.00%		Paid Off - 360		01-Dec-2004

381016937 2			230,000.00		227,949.27			07-Sep-2005		6.700%		MA - 76.92%		Paid Off - 360		01-Dec-2004

381016951 2			228,750.00		227,071.21			08-Sep-2005		7.700%		RI - 75.00%		Paid Off - 360		01-Dec-2004

381017224 3			140,000.00		138,926.91			13-Sep-2005		7.490%		RI - 73.68%		Paid Off - 360		01-Dec-2004

381017357 2			195,000.00		193,597.42			27-Sep-2005		7.250%		MA - 39.80%		Paid Off - 360		01-Jan-2005

521020454 1			85,600.00		85,057.27			27-Sep-2005		8.750%		IL - 80.00%		Paid Off - 360		01-Dec-2004

521020672 2			166,500.00		165,191.89			20-Sep-2005		7.650%		IN - 86.72%		Paid Off - 360		01-Dec-2004

521020977 1			50,000.00		49,476.85			20-Sep-2005		5.891%		IN - 38.46%		Paid Off - 360		01-Dec-2004

551003579 2			212,400.00		210,732.75			22-Sep-2005		6.800%		LA - 80.00%		Paid Off - 360		01-Jan-2005

551003580 3			53,100.00		52,459.42			22-Sep-2005		9.625%		LA - 20.00%		Paid Off - 360		01-Jan-2005

611013013 3			215,000.00		213,374.80			26-Sep-2005		7.550%		NY - 43.88%		Paid Off - 360		01-Dec-2004

611013118 3			60,000.00		59,739.74			13-Sep-2005		9.750%		NY - 14.63%		Paid Off - 360		01-Jan-2005

611013174 3			374,300.00		371,390.10			06-Sep-2005		6.850%		NY - 94.92%		Paid Off - 360		01-Jan-2005

631004373 3			486,000.00		481,168.00			06-Sep-2005		6.200%		CA - 75.00%		Paid Off - 360		01-Dec-2004

631004546 3			50,000.00		49,767.90			30-Sep-2005		9.950%		CA - 16.67%		Paid Off - 360		01-Dec-2004

631004782 3			518,700.00		518,700.00			30-Sep-2005		6.990%		CA - 95.00%		Paid Off - 360		01-Dec-2004

631004806 3			140,935.00		139,783.04			20-Sep-2005		7.150%		CA - 82.90%		Paid Off - 360		01-Dec-2004

661002423 2			324,400.00		321,574.81			29-Sep-2005		6.990%		CA - 80.00%		Paid Off - 360		01-Dec-2004

661002605 3			390,000.00		386,965.46			07-Sep-2005		8.200%		CA - 77.23%		Paid Off - 360		01-Dec-2004

671001023 3			480,000.00		473,839.48			08-Sep-2005		5.990%		CA - 82.76%		Paid Off - 360		01-Nov-2004

681002222 2			142,000.00		140,803.91			27-Sep-2005		7.500%		ME - 83.53%		Paid Off - 360		01-Nov-2004



Page 29 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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

681002673 1			168,150.00		166,853.70			09-Sep-2005		7.450%		ME - 95.00%		Paid Off - 360		01-Dec-2004


681002720 3			85,000.00		84,245.41			01-Sep-2005		6.725%		NH - 62.96%		Paid Off - 360		01-Dec-2004

691000971 3			468,350.00		468,350.00			01-Sep-2005		7.100%		PA - 95.00%		Paid Off - 360		01-Nov-2004

691001295 1			171,000.00		169,532.84			20-Sep-2005		6.900%		MD - 95.00%		Paid Off - 360		01-Dec-2004

691001298 1			145,000.00		143,871.19			01-Sep-2005		7.400%		MD - 78.80%		Paid Off - 360		01-Dec-2004

721005129 1			77,350.00		76,710.44			23-Sep-2005		7.515%		AZ - 85.00%		Paid Off - 360		01-Dec-2004

721005153 1			343,000.00		340,918.68			02-Sep-2005		8.650%		CA - 70.00%		Paid Off - 360		01-Dec-2004

721005173 2			174,400.00		173,379.72			21-Sep-2005		8.300%		AZ - 80.00%		Paid Off - 360		01-Jan-2005

741007435 1			125,991.00		124,899.54			19-Sep-2005		6.850%		FL - 80.00%		Paid Off - 360		01-Dec-2004

741007987 3			111,500.00		110,862.49			22-Sep-2005		9.100%		FL - 61.26%		Paid Off - 360		01-Dec-2004

781000721 1			131,250.00		130,430.11			06-Sep-2005		9.000%		PA - 75.00%		Paid Off - 360		01-Nov-2004

831030017 3			320,000.00		317,433.82			09-Sep-2005		7.750%		CA - 80.00%		Paid Off - 360		01-Nov-2004

831030031 3			441,750.00		437,279.02			09-Sep-2005		6.550%		CA - 95.00%		Paid Off - 360		01-Nov-2004

831030032 1			170,000.00		169,987.12			01-Sep-2005		8.450%		CA - 85.00%		Paid Off - 360		01-Nov-2004

831030041 1			104,000.00		103,337.70			06-Sep-2005		8.900%		CA - 80.00%		Paid Off - 360		01-Nov-2004

841001462 1			101,500.00		100,832.34			19-Sep-2005		8.250%		MI - 70.00%		Paid Off - 360		01-Dec-2004

841001652 1			104,000.00		103,204.31			20-Sep-2005		7.000%		MI - 83.20%		Paid Off - 360		01-Jan-2005

841001699 2			148,200.00		147,200.29			20-Sep-2005		7.600%		MI - 95.00%		Paid Off - 360		01-Jan-2005

1000010909 2			48,000.00		47,180.53			30-Sep-2005		9.750%		CA - 20.00%		Paid Off - 240		01-Oct-2004

1000030497 3			76,800.00		75,751.57			05-Oct-2005		10.800%		FL - 20.00%		Paid Off - 240		01-Nov-2004

1000034233 2			115,200.00		115,167.24			03-Oct-2005		6.750%		FL - 90.00%		Paid Off - 360		01-Nov-2004

1000047693 3			93,800.00		93,393.63			16-Sep-2005		10.750%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1000059714 1			232,000.00		231,999.76			21-Sep-2005		6.700%		CA - 66.29%		Paid Off - 360		01-Dec-2004

1000082074 1			188,000.00		185,795.48			07-Oct-2005		5.500%		CA - 44.87%		Paid Off - 360		01-Dec-2004



TOTAL			53,544,535.00		53,131,446.04



Page 30 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



									Group 3		Group 2		Group 1		Total


Current




Number of Loans Liquidated								0		1		1		2
Collateral Principal Realized Loss/(Gain) Amount								0.00		501.63		7,794.74		8,296.37
Collateral Interest Realized Loss/(Gain) Amount								0.00		0.00		0.00		0.00
Net Liquidation Proceeds								0.00		165,098.37		266,020.36		431,118.73

Cumulative




Number of Loans Liquidated								0		1		3		4
Collateral Realized Loss/(Gain) Amount								0.00		501.63		51,770.83		52,272.46
Net Liquidation Proceeds								0.00		165,098.37		407,921.53		573,019.90










Page 31 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution


DEFAULT SPEEDS



									Group 3		Group 2		Group 1		Total



MDR								0.00%		0.04%		0.07%		0.03%
3 Months Avg MDR								0.00%		0.01%		0.02%		0.01%
12 Months Avg MDR								0.00%		0.01%		0.02%		0.01%
Avg MDR Since Cut-off								0.00%		0.01%		0.02%		0.01%


CDR								0.00%		0.48%		0.78%		0.40%
3 Months Avg CDR								0.00%		0.16%		0.26%		0.13%
12 Months Avg CDR								0.00%		0.07%		0.18%		0.08%
Avg CDR Since Cut-off								0.00%		0.07%		0.18%		0.08%


SDA								0.00%		2.15%		3.45%		1.77%
3 Months Avg SDA Approximation								0.00%		0.79%		1.27%		0.65%
12 Months Avg SDA Approximation								0.00%		0.42%		1.08%		0.48%
Avg SDA Since Cut-off Approximation								0.00%		0.42%		1.08%		0.48%


Loss Severity Approximation for Current Period								0.00%		0.30%		2.85%		1.89%
3 Months Avg Loss Severity Approximation								0.00%		0.10%		0.95%		0.63%
12 Months Avg Loss Severity Approximation								0.00%		0.04%		3.79%		3.65%
Avg Loss Severity Approximation Since Cut-off								0.00%		0.04%		3.79%		3.65%












Page 32 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 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 33 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 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)

38284270 1
			6.760%		CO - 84.48%		360		273,815.10				7,794.74		0.00

1866578 2		Forcls	5.850%		CA - 80.00%		360		165,600.00				501.63		0.00


TOTAL									439,415.10			8,296.37		0.00



Page 34 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Triggers and Adj. Cert. Report
TRIGGER EVENTS

								Group 3		Group 2		Group 1		Total
						Trigger Event in effect (0=No , 1=Yes)								0
						Stepdown Date has occurred (0 = No, 1=Yes)								0
						3 months rolling 60+ days includes 60+ bkcs and all flcs								0.00
						Ending Balance								1,257,070,859.25
						Prior period Senior Enhancement Percentage								22.4100%



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION

								Group 3		Group 2		Group 1		Total
Basis Risk CarryForward Amount paid
Basis Risk CarryForward Amount unpaid
Excess Reserve Fund Account Balance




Page 35 of 36
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

October 25, 2005 Distribution
Other Related Information
ADDITIONAL INFORMATION

								Group 3		Group 2		Group 1		Total
Current Scheduled Payments														8,971,501.94
Current Scheduled Payments 1 Month Prior														9,359,994.26
Current Scheduled Payments 2 Month Prior														9,724,598.59
Current Scheduled Payments 3 Month Prior														10,097,222.63
Current Scheduled Payments 4 Month Prior														10,382,745.56
Current Scheduled Payments 5 Month Prior														10,627,011.35
Current Scheduled Payments 6 Month Prior														10,868,495.06
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		0.00
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior								0.00		0.00		0.00		0.00




Page 36 of 36

Morgan Stanley ABS Capital I Inc. Trust 2005-HE2 8-K