

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

                                      FORM 8-K

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

             Date of Report (Date of earliest event reported): December 27, 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
     December 27, 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:  Dec 29, 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
              December 27, 2005.



Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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					32
										11. Realized Loss Detail Report					35
				Servicer(s)
										12. Triggers and Adj. Cert. Report					36
				Option One
										13. Other Related Information					37



				Underwriter(s)
				Morgan Stanley


										Total Number of Pages					37


				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:			December 27, 2005
										Factor Information:			(800) 735-7777
				Record Date:			November 30, 2005
										Main Phone Number:			(714) 247-6000

							December 23, 2005


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






Page 1 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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		235,065,050.99		919,626.72		17,438,202.80		18,357,829.52		0.00		0.00		217,626,848.19

A-1mz	SR	$	81,522,000.00		58,766,803.40		232,520.65		4,359,590.80		4,592,111.45		0.00		0.00		54,407,212.60
A-2ss	SR	$	366,742,000.00		250,867,837.99		983,680.67		20,739,994.34		21,723,675.01		0.00		0.00		230,127,843.65
A-2mz	SR	$	40,750,000.00		27,874,812.26		110,043.56		2,304,494.09		2,414,537.65		0.00		0.00		25,570,318.17
A-3a	SR	$	240,000,000.00		104,444,009.29		397,467.48		24,802,625.20		25,200,092.68		0.00		0.00		79,641,384.09
A-3b	SR	$	191,902,000.00		191,902,000.00		752,469.06		0.00		752,469.06		0.00		0.00		191,902,000.00
A-3mz	SR	$	47,990,000.00		32,927,944.28		129,992.21		2,755,898.29		2,885,890.50		0.00		0.00		30,172,045.99
M-1	SUB	$	49,257,000.00		49,256,999.97		201,023.29		0.00		201,023.29		0.00		0.00		49,256,999.97
M-2	SUB	$	44,490,000.00		44,490,000.00		183,150.50		0.00		183,150.50		0.00		0.00		44,490,000.00
M-3	SUB	$	28,601,000.00		28,601,000.00		118,757.71		0.00		118,757.71		0.00		0.00		28,601,000.00
M-4	SUB	$	26,218,000.00		26,218,000.00		112,358.70		0.00		112,358.70		0.00		0.00		26,218,000.00
M-5	SUB	$	25,423,000.00		25,423,000.00		110,081.59		0.00		110,081.59		0.00		0.00		25,423,000.00
M-6	SUB	$	22,245,000.00		22,245,000.00		97,309.52		0.00		97,309.52		0.00		0.00		22,245,000.00
B-1	SUB	$	19,067,000.00		19,067,000.00		91,373.30		0.00		91,373.30		0.00		0.00		19,067,000.00
B-2	SUB	$	15,890,000.00		15,890,000.00		77,560.86		0.00		77,560.86		0.00		0.00		15,890,000.00
B-3	SUB	$	15,890,000.00		15,890,000.00		86,035.52		0.00		86,035.52		0.00		0.00		15,890,000.00
X	NOF	$	46,874,277.00		46,873,915.16		1,942,636.36		0.00		1,942,636.36		0.00		0.00		46,873,915.16
P	NOF	$	0.00		0.00		1,145,976.60		0.00		1,145,976.60		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		1,195,803,373.34		7,692,064.30		72,400,805.52		80,092,869.82		0.00		0.00		1,123,402,567.82






Page 2 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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	11/25/05		12/26/05		A-Act/360		61744CMU7		326,085,000.00		720.870482		2.820206		53.477476		56.297682	667.393005
A-1mz	11/25/05		12/26/05		A-Act/360		61744CMV5		81,522,000.00		720.870482		2.852244		53.477476		56.329720	667.393006
A-2ss	11/25/05		12/26/05		A-Act/360		61744CMW3		366,742,000.00		684.044473		2.682214		56.552002		59.234216	627.492471
A-2mz	11/25/05		12/26/05		A-Act/360		61744CMX1		40,750,000.00		684.044473		2.700455		56.552002		59.252458	627.492470
A-3a	11/25/05		12/26/05		A-Act/360		61744CMY9		240,000,000.00		435.183372		1.656115		103.344272		105.000386	331.839100
A-3b	11/25/05		12/26/05		A-Act/360		61744CMZ6		191,902,000.00		1,000.000000		3.921111		0.000000		3.921111	1,000.000000
A-3mz	11/25/05		12/26/05		A-Act/360		61744CNA0		47,990,000.00		686.141785		2.708735		57.426512		60.135247	628.715274
M-1	11/25/05		12/26/05		A-Act/360		61744CNB8		49,257,000.00		999.999999		4.081111		0.000000		4.081111	999.999999
M-2	11/25/05		12/26/05		A-Act/360		61744CNC6		44,490,000.00		1,000.000000		4.116667		0.000000		4.116667	1,000.000000
M-3	11/25/05		12/26/05		A-Act/360		61744CND4		28,601,000.00		1,000.000000		4.152222		0.000000		4.152222	1,000.000000
M-4	11/25/05		12/26/05		A-Act/360		61744CNE2		26,218,000.00		1,000.000000		4.285556		0.000000		4.285556	1,000.000000
M-5	11/25/05		12/26/05		A-Act/360		61744CNF9		25,423,000.00		1,000.000000		4.330000		0.000000		4.330000	1,000.000000
M-6	11/25/05		12/26/05		A-Act/360		61744CNG7		22,245,000.00		1,000.000000		4.374445		0.000000		4.374445	1,000.000000
B-1	11/25/05		12/26/05		A-Act/360		61744CNH5		19,067,000.00		1,000.000000		4.792222		0.000000		4.792222	1,000.000000
B-2	11/25/05		12/26/05		A-Act/360		61744CNJ1		15,890,000.00		1,000.000000		4.881111		0.000000		4.881111	1,000.000000
B-3	11/25/05		12/26/05		A-Act/360		61744CNK8		15,890,000.00		1,000.000000		5.414444		0.000000		5.414444	1,000.000000
X	11/25/05		12/26/05		A-Act/360				46,874,277.00		999.992281		41.443548		0.000000		41.443548	999.992281
P	11/25/05		12/26/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000
R	11/25/05		12/26/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000




Page 3 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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		7,860,543.51		106,148,959.28		2,309,192.53		108,458,151.81		116,318,695.32		0.00		0.00		217,626,848.19
A-1mz	81,522,000.00		1,991,925.14		26,537,483.96		577,303.44		27,114,787.40		29,106,712.54		0.00		0.00		54,407,212.60
A-2ss	366,742,000.00		8,687,178.94		133,721,968.77		2,892,187.58		136,614,156.35		145,301,335.29		0.00		0.00		230,127,843.65
A-2mz	40,750,000.00		973,147.43		14,858,320.64		321,361.19		15,179,681.83		16,152,829.26		0.00		0.00		25,570,318.17
A-3a	240,000,000.00		4,668,673.36		156,974,418.59		3,384,197.32		160,358,615.91		165,027,289.27		0.00		0.00		79,641,384.09
A-3b	191,902,000.00		5,402,281.93		0.00		0.00		0.00		5,402,281.93		0.00		0.00		191,902,000.00
A-3mz	47,990,000.00		1,147,659.51		17,441,925.12		376,028.89		17,817,954.01		18,965,613.52		0.00		0.00		30,172,045.99
M-1	49,257,000.00		1,453,635.83		0.03		0.00		0.03		1,453,635.86		0.00		0.00		49,256,999.97
M-2	44,490,000.00		1,326,401.55		0.00		0.00		0.00		1,326,401.55		0.00		0.00		44,490,000.00
M-3	28,601,000.00		861,339.10		0.00		0.00		0.00		861,339.10		0.00		0.00		28,601,000.00
M-4	26,218,000.00		819,287.12		0.00		0.00		0.00		819,287.12		0.00		0.00		26,218,000.00
M-5	25,423,000.00		804,048.38		0.00		0.00		0.00		804,048.38		0.00		0.00		25,423,000.00
M-6	22,245,000.00		711,942.05		0.00		0.00		0.00		711,942.05		0.00		0.00		22,245,000.00
B-1	19,067,000.00		677,940.49		0.00		0.00		0.00		677,940.49		0.00		0.00		19,067,000.00
B-2	15,890,000.00		576,985.83		0.00		0.00		0.00		576,985.83		0.00		0.00		15,890,000.00
B-3	15,890,000.00		649,020.49		0.00		0.00		0.00		649,020.49		0.00		0.00		15,890,000.00
X	46,874,277.00		32,471,347.90		349.64		12.20		361.84		32,471,709.74		0.00		0.00		46,873,915.16
P	0.00		8,831,349.11		0.00		0.00		0.00		8,831,349.11		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		79,914,707.67		455,683,426.03		9,860,283.15		465,543,709.18		545,458,416.85		0.00		0.00		1,123,402,567.82



Page 4 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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	4.40125%		235,065,050.99		919,626.72		0.00		0.00		0.00		919,626.72		919,626.72		0.00
A-1mz	4.45125%		58,766,803.40		232,520.65		0.00		0.00		0.00		232,520.65		232,520.65		0.00
A-2ss	4.41125%		250,867,837.99		983,680.67		0.00		0.00		0.00		983,680.67		983,680.67		0.00
A-2mz	4.44125%		27,874,812.26		110,043.56		0.00		0.00		0.00		110,043.56		110,043.56		0.00
A-3a	4.28125%		104,444,009.29		397,467.48		0.00		0.00		0.00		397,467.48		397,467.48		0.00
A-3b	4.41125%		191,902,000.00		752,469.06		0.00		0.00		0.00		752,469.06		752,469.06		0.00
A-3mz	4.44125%		32,927,944.28		129,992.21		0.00		0.00		0.00		129,992.21		129,992.21		0.00
M-1	4.59125%		49,256,999.97		201,023.29		0.00		0.00		0.00		201,023.29		201,023.29		0.00
M-2	4.63125%		44,490,000.00		183,150.50		0.00		0.00		0.00		183,150.50		183,150.50		0.00
M-3	4.67125%		28,601,000.00		118,757.71		0.00		0.00		0.00		118,757.71		118,757.71		0.00
M-4	4.82125%		26,218,000.00		112,358.70		0.00		0.00		0.00		112,358.70		112,358.70		0.00
M-5	4.87125%		25,423,000.00		110,081.59		0.00		0.00		0.00		110,081.59		110,081.59		0.00
M-6	4.92125%		22,245,000.00		97,309.52		0.00		0.00		0.00		97,309.52		97,309.52		0.00
B-1	5.39125%		19,067,000.00		91,373.30		0.00		0.00		0.00		91,373.30		91,373.30		0.00
B-2	5.49125%		15,890,000.00		77,560.86		0.00		0.00		0.00		77,560.86		77,560.86		0.00
B-3	6.09125%		15,890,000.00		86,035.52		0.00		0.00		0.00		86,035.52		86,035.52		0.00
X	46.62435%		46,873,915.16		0.00		0.00		0.00		0.00		0.00		1,942,636.36		0.00
P	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		1,145,976.60		0.00
R	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,195,803,373.34		4,603,451.34		0.00		0.00		0.00		4,603,451.34		7,692,064.30		0.00



Page 5 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Collection Account Report
SUMMARY

								Group 3		Group 2		Group 1		Total
Principal Collections								27,493,164.54		22,989,835.15		21,746,097.04		72,229,096.73
Principal Withrawals								0.00		0.00		0.00		0.00
Principal Other Accounts								0.00		0.00		0.00		0.00
TOTAL NET PRINCIPAL								27,493,164.54		22,989,835.15		21,746,097.04		72,229,096.73
Interest Collections								2,507,521.58		2,093,091.19		2,176,323.90		6,776,936.67
Interest Withdrawals								-0.00		-0.00		-0.00		-0.00
Interest Other Accounts								0.00		0.00		1,145,976.60		1,145,976.60
Interest Fees								-22,447.91		-18,510.91		-17,085.21		-59,140.18
TOTAL NET INTEREST								2,485,073.67		2,074,580.29		3,305,215.29		7,863,773.09
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION								29,978,238.21		25,064,415.44		25,051,312.33		80,092,869.82



PRINCIPAL - COLLECTIONS

									Group 3		Group 2		Group 1		Total
Scheduled Principal Received									343,980.75		294,985.74		307,807.45		946,773.94
Prepayments In Full									26,958,170.02		22,355,507.80		21,415,263.26		70,728,941.08
Curtailments									53,696.17		9,893.65		22,776.16		86,365.98
Liquidations									163,432.95		475,291.58		0.00		638,724.53
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									-26,115.35		-145,843.62		(250.17)		-171,708.80
Delinquent Principal									-322,370.35		-278,029.52		-292,454.69		-892,854.56
Advanced Principal									322,370.35		278,029.52		292,454.69		892,854.56
TOTAL PRINCIPAL COLLECTED									27,493,164.54		22,989,835.15		21,746,097.04		72,229,096.73


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 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution

INTEREST - COLLECTIONS

								Group 3		Group 2		Group 1		Total
Scheduled Interest								2,667,251.86		2,226,460.75		2,320,817.40		7,214,530.01
Liquidation Interest								1,123.60		3,284.14		0.00		4,407.74
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								-39,849.01		-46,882.70		-32,050.42		-118,782.13
Compensating Interest								39,849.01		46,882.70		32,050.42		118,782.12
Delinquent Interest								-2,353,602.73		-1,974,657.28		-2,085,222.08		-6,413,482.09
Interest Advanced								2,192,748.85		1,838,003.58		1,940,728.58		5,971,481.01
TOTAL INTEREST COLLECTED								2,507,521.58		2,093,091.19		2,176,323.90		6,776,936.67


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		1,145,976.60		1,145,976.60
TOTAL INTEREST OTHER ACCOUNTS								0.00		0.00		1,145,976.60		1,145,976.60



INTEREST - FEES

								Group 3		Group 2		Group 1		Total
Current Servicing Fees								21,790.39		17,954.32		16,505.61		56,250.32
Current Trustee Fees								657.52		556.59		579.60		1,793.71
Current Custodian Fees														1,096.15
TOTAL INTEREST OTHER FEES								22,447.91		18,510.91		17,085.21		59,140.18




Page 7 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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														46,873,915.16
Overcollateralization Target Amount														46,873,915.16
Overcollateralization Deficiency Amount														0.00
Overcollateralization Release Amount														0.00




Page 8 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Collateral Report


COLLATERAL



									Group 3		Group 2		Group 1		Total



Loan Count:


Original								3,369		2,867		3,482		9,718
Prior								2,682		2,189		2,795		7,666
Prefunding								0		0		0		0
Scheduled Paid Offs								-0		-0		-0		-0
Full Voluntary Prepayments								-124		-122		-136		-382
Repurchases								-0		-0		-0		-0
Liquidations								-2		-3		-0		-5
Current								2,556		2,064		2,659		7,279
Principal Balance:


Original								588,824,042.09		499,990,160.81		500,130,978.76		1,588,945,181.66
Prior								438,346,253.80		371,059,232.53		386,397,887.02		1,195,803,373.35
Prefunding								0.00		0.00		0.00		0.00
Scheduled Principal								-343,980.75		-294,985.74		-307,807.45		-946,773.94
Partial Prepayments								-53,696.17		-9,893.65		-22,776.16		-86,365.98
Full Voluntary Prepayments								-26,958,170.02		-22,355,507.80		-21,415,263.26		-70,728,941.08
Repurchases								-0.00		-0.00		-0.00		-0.00
Liquidations								-163,432.95		-475,291.58		-0.00		-638,724.53
Current								410,826,973.91		347,923,553.76		364,652,040.15		1,123,402,567.82





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






Page 9 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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								7.31576%		7.21626%		7.21820%		7.25349%
Weighted Average Coupon Current								7.30484%		7.21096%		7.21941%		7.24810%
Weighted Average Months to Maturity Original								351		350		350		350
Weighted Average Months to Maturity Prior								343		342		343		343
Weighted Average Months to Maturity Current								341		341		342		341
Weighted Avg Remaining Amortization Term Original								351		350		350		350
Weighted Avg Remaining Amortization Term Prior								343		342		343		343
Weighted Avg Remaining Amortization Term Current								341		341		342		341
Weighted Average Seasoning Original								5.37		5.24		5.32		5.31
Weighted Average Seasoning Prior								12.35		12.23		12.32		12.30
Weighted Average Seasoning Current								13.36		13.24		13.32		13.31









Page 10 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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								6.17161%		5.68815%		6.10728%		6.00183%
Weighted Average Margin Current								6.16105%		5.68478%		6.10849%		5.99838%
Weighted Average Max Rate Original								13.52419%		13.80343%		13.45496%		13.58859%
Weighted Average Max Rate Prior								13.48075%		13.75178%		13.40709%		13.53817%
Weighted Average Max Rate Current								13.46750%		13.74651%		13.40929%		13.53184%
Weighted Average Min Rate Original								7.28857%		7.30824%		7.23762%		7.27777%
Weighted Average Min Rate Prior								7.26934%		7.25828%		7.20915%		7.24525%
Weighted Average Min Rate Current								7.25879%		7.25341%		7.21149%		7.24071%
Weighted Average Cap Up Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Up Prior								1.11338%		1.25115%		1.10164%		1.15141%
Weighted Average Cap Up Current								1.10970%		1.25123%		1.10042%		1.14938%
Weighted Average Cap Down Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Down Prior								1.11338%		1.25115%		1.10164%		1.15141%
Weighted Average Cap Down Current								1.10970%		1.25123%		1.10042%		1.14938%




SERVICING FEES & ADVANCES

									Group 3		Group 2		Group 1		Total




Current Servicing Fees								21,790.39		17,954.32		16,505.61		56,250.32
Delinquent Servicing Fees								160,853.88		136,653.70		144,493.51		442,001.09
TOTAL SERVICING FEES								182,644.28		154,608.02		160,999.13		498,251.43


Compensating Interest								-39,849.01		-46,882.70		-32,050.42		-118,782.12
Delinquent Servicing Fees								-160,853.88		-136,653.70		-144,493.51		-442,001.09
COLLECTED SERVICING FEES								-18,058.61		-28,928.38		-15,544.79		-62,531.78


Aggregate Advances with respect to this Distribution								2,515,119.20		2,116,033.10		2,233,183.27		6,864,335.57





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														4.1913%




Page 11 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				35,458,647.81		13,299,664.51		7,713,454.13		56,471,766.45
			% Balance				3.16%		1.18%		0.69%		5.03%
			# Loans				236		99		51		386
			% # Loans				3.24%		1.36%		0.70%		5.30%
	FORECLOSURE		Balance		0.00		738,530.32		2,393,140.20		16,695,705.29		19,827,375.81
			% Balance		0.00%		0.07%		0.21%		1.49%		1.76%
			# Loans		0		3		15		116		134
			% # Loans		0.00%		0.04%		0.21%		1.59%		1.84%
	BANKRUPTCY		Balance		3,845,776.46		891,105.87		1,509,381.78		5,147,029.56		11,393,293.67
			% Balance		0.34%		0.08%		0.13%		0.46%		1.01%
			# Loans		35		9		10		41		95
			% # Loans		0.48%		0.12%		0.14%		0.56%		1.31%
	REO		Balance		0.00		0.00		0.00		3,128,516.61		3,128,516.61
			% Balance		0.00%		0.00%		0.00%		0.28%		0.28%
			# Loans		0		0		0		21		21
			% # Loans		0.00%		0.00%		0.00%		0.29%		0.29%
	TOTAL		Balance		3,845,776.46		37,088,284.00		17,202,186.49		32,684,705.59		90,820,952.54
			% Balance		0.34%		3.30%		1.53%		2.91%		8.08%
			# Loans		35		248		124		229		636
			% # Loans		0.48%		3.41%		1.70%		3.15%		8.74%








Page 12 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution


	GROUP 1
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				11,375,692.93		4,803,937.57		2,770,475.72		18,950,106.22
			% Balance				3.12%		1.32%		0.76%		5.20%
			# Loans				92		37		22		151
			% # Loans				3.46%		1.39%		0.83%		5.68%
	FORECLOSURE		Balance		0.00		169,167.19		482,507.77		5,986,111.57		6,637,786.53
			% Balance		0.00%		0.05%		0.13%		1.64%		1.82%
			# Loans		0		1		3		49		53
			% # Loans		0.00%		0.04%		0.11%		1.84%		1.99%
	BANKRUPTCY		Balance		1,389,652.32		545,494.61		470,237.17		1,903,217.50		4,308,601.60
			% Balance		0.38%		0.15%		0.13%		0.52%		1.18%
			# Loans		12		6		4		16		38
			% # Loans		0.45%		0.23%		0.15%		0.60%		1.43%
	REO		Balance		0.00		0.00		0.00		1,608,344.19		1,608,344.19
			% Balance		0.00%		0.00%		0.00%		0.44%		0.44%
			# Loans		0		0		0		11		11
			% # Loans		0.00%		0.00%		0.00%		0.41%		0.41%
	TOTAL		Balance		1,389,652.32		12,090,354.73		5,756,682.51		12,268,148.98		31,504,838.54
			% Balance		0.38%		3.32%		1.58%		3.36%		8.64%
			# Loans		12		99		44		98		253
			% # Loans		0.45%		3.72%		1.65%		3.69%		9.51%










Page 13 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution

	GROUP 2
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				9,966,065.58		3,920,919.15		2,584,598.32		16,471,583.05
			% Balance				2.86%		1.13%		0.74%		4.73%
			# Loans				55		25		15		95
			% # Loans				2.66%		1.21%		0.73%		4.60%
	FORECLOSURE		Balance		0.00		261,902.28		598,925.75		4,512,606.23		5,373,434.26
			% Balance		0.00%		0.08%		0.17%		1.30%		1.54%
			# Loans		0		1		4		22		27
			% # Loans		0.00%		0.05%		0.19%		1.07%		1.31%
	BANKRUPTCY		Balance		1,512,106.09		293,300.93		595,999.04		1,621,387.21		4,022,793.27
			% Balance		0.43%		0.08%		0.17%		0.47%		1.16%
			# Loans		12		2		2		12		28
			% # Loans		0.58%		0.10%		0.10%		0.58%		1.36%
	REO		Balance		0.00		0.00		0.00		510,308.96		510,308.96
			% Balance		0.00%		0.00%		0.00%		0.15%		0.15%
			# Loans		0		0		0		3		3
			% # Loans		0.00%		0.00%		0.00%		0.15%		0.15%
	TOTAL		Balance		1,512,106.09		10,521,268.79		5,115,843.94		9,228,900.72		26,378,119.54
			% Balance		0.43%		3.02%		1.47%		2.65%		7.58%
			# Loans		12		58		31		52		153
			% # Loans		0.58%		2.81%		1.50%		2.52%		7.41%










Page 14 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution

	GROUP 3
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				14,116,889.30		4,574,807.79		2,358,380.09		21,050,077.18
			% Balance				3.44%		1.11%		0.57%		5.12%
			# Loans				89		37		14		140
			% # Loans				3.48%		1.45%		0.55%		5.48%
	FORECLOSURE		Balance		0.00		307,460.85		1,311,706.68		6,196,987.49		7,816,155.02
			% Balance		0.00%		0.07%		0.32%		1.51%		1.90%
			# Loans		0		1		8		45		54
			% # Loans		0.00%		0.04%		0.31%		1.76%		2.11%
	BANKRUPTCY		Balance		944,018.05		52,310.33		443,145.57		1,622,424.85		3,061,898.80
			% Balance		0.23%		0.01%		0.11%		0.39%		0.75%
			# Loans		11		1		4		13		29
			% # Loans		0.43%		0.04%		0.16%		0.51%		1.13%
	REO		Balance		0.00		0.00		0.00		1,009,863.46		1,009,863.46
			% Balance		0.00%		0.00%		0.00%		0.25%		0.25%
			# Loans		0		0		0		7		7
			% # Loans		0.00%		0.00%		0.00%		0.27%		0.27%
	TOTAL		Balance		944,018.05		14,476,660.48		6,329,660.04		#######		32,937,994.46
			% Balance		0.23%		3.52%		1.54%		2.72%		8.02%
			# Loans		11		91		49		79		230
			% # Loans		0.43%		3.56%		1.92%		3.09%		9.00%









Page 15 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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
1869230 1
			186,300.02		186,300.02		01-Feb-2005		7.900%		MN - 90.00%		360		01-Dec-2004

1911736 1			171,000.00		169,201.47		01-Mar-2005		7.250%		MO - 90.00%		360		01-Dec-2004
1922971 1			304,000.00		304,000.00		01-Jan-2005		6.950%		TX - 80.00%		360		01-Dec-2004
38268204 1			49,999.50		49,592.88		30-May-2005		8.940%		VA - 82.64%		360		01-Oct-2004
38268436 1			89,352.00		88,357.28		06-Mar-2005		7.015%		NC - 79.78%		360		01-Nov-2004
38268484 1			103,959.20		102,764.36		28-Feb-2005		7.190%		NC - 79.97%		360		01-Oct-2004
38269604 1			64,000.00		63,546.96		18-Jan-2005		9.240%		TN - 71.91%		360		01-Nov-2004
38272268 1			277,100.00		273,632.24		18-Jul-2005		6.340%		IN - 85.00%		360		01-Nov-2004
38275357 1			156,000.00		154,137.87		01-Apr-2005		6.590%		CO - 80.00%		360		01-Dec-2004
38283678 1			157,250.00		155,544.77		01-Mar-2005		7.490%		MI - 85.00%		360		01-Nov-2004
741008253 1			64,000.00		61,266.34		01-Apr-2005		6.950%		MS - 80.00%		180		01-Dec-2004
38258291 2			190,901.00		189,153.60		01-Jun-2005		8.350%		MI - 88.79%		360		01-Nov-2004
38683208 2			85,000.00		84,302.63		01-Mar-2005		8.509%		MI - 83.33%		360		01-Dec-2004
38684081 2			240,000.00		236,852.73		01-Feb-2005		6.500%		MI - 80.00%		360		01-Nov-2004
38261091 3			80,100.00		79,389.16		01-Feb-2005		8.699%		GA - 90.00%		360		01-Nov-2004
38273252 3			170,000.00		168,030.12		01-Dec-2004		7.440%		WI - 85.00%		360		01-Nov-2004
38275229 3			207,920.00		205,791.88		18-Mar-2005		7.390%		MA - 79.97%		360		01-Nov-2004
38275549 3			153,900.00		152,358.08		15-Jun-2005		7.500%		VA - 90.00%		360		01-Nov-2004
38281453 3			104,000.00		102,213.65		26-Feb-2005		6.990%		NC - 84.90%		360		01-Nov-2004
38683657 3			175,000.00		173,324.74		01-Jan-2005		8.125%		GA - 100.00%		360		01-Nov-2004
161036275 3			130,400.00		128,755.83		01-Mar-2005		6.300%		NH - 80.00%		360		01-Dec-2004


TOTAL			3,160,181.72		3,128,516.61


Page 16 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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		57,302.15		01-Apr-2005		11.500%		CA - 20.00%		360		01-Nov-2004

1878206 1			99,920.00		99,920.00		01-Jun-2005		6.150%		CO - 80.00%		360		01-Dec-2004
11071846 1			63,200.00		62,515.81		01-Mar-2005		7.100%		FL - 80.00%		360		01-Dec-2004
21060025 1			153,600.00		151,811.78		01-Jul-2005		7.900%		CA - 80.00%		360		01-Dec-2004
31029860 1			119,000.00		118,106.93		01-May-2005		8.950%		CA - 26.15%		360		01-Dec-2004
38257106 1			192,000.00		192,000.00		01-Aug-2005		6.500%		KY - 80.00%		360		01-Nov-2004
38257850 1			45,000.00		44,683.57		01-May-2005		9.650%		FL - 90.00%		360		01-Nov-2004
38258611 1			94,400.00		93,695.08		01-Jul-2005		9.990%		MA - 80.00%		360		01-Nov-2004
38268396 1			131,000.00		129,923.27		06-Jun-2005		8.500%		SC - 94.93%		360		01-Nov-2004
38268404 1			100,000.00		98,771.94		06-Jul-2005		6.440%		NC - 80.00%		360		01-Nov-2004
38268684 1			50,000.00		49,668.74		01-Jul-2005		9.940%		NC - 64.10%		360		01-Nov-2004
38268852 1			122,400.00		121,046.44		05-Mar-2005		6.990%		SC - 80.00%		360		01-Nov-2004
38268916 1			160,000.00		158,867.95		05-Aug-2005		9.550%		CO - 80.00%		360		01-Nov-2004
38268988 1			199,200.00		196,820.68		30-Jul-2005		6.990%		TN - 79.68%		360		01-Oct-2004
38269060 1			134,800.00		133,294.86		14-Jun-2005		6.940%		NC - 78.37%		360		01-Nov-2004
38270460 1			192,000.00		189,876.70		13-Feb-2005		6.990%		FL - 80.00%		360		01-Nov-2004
38271644 1			146,700.00		144,965.38		11-Apr-2005		6.640%		OH - 90.00%		360		01-Nov-2004
38273108 1			210,400.00		207,674.43		01-May-2005		6.290%		IL - 80.00%		360		01-Dec-2004
38273764 1			88,800.00		87,709.46		01-Apr-2005		6.440%		IL - 80.00%		360		01-Dec-2004
38274189 1			176,000.00		173,755.66		20-Jun-2005		6.240%		MI - 80.00%		360		01-Nov-2004
38274781 1			268,000.00		264,512.54		28-Apr-2005		6.540%		NY - 80.00%		360		01-Oct-2004
38277037 1			77,920.00		76,926.24		01-Jul-2005		6.240%		WA - 79.51%		360		01-Dec-2004
38278565 1			77,600.00		76,699.76		08-May-2005		6.740%		IL - 78.38%		360		01-Nov-2004
38278925 1			95,920.00		94,626.28		14-Jun-2005		5.940%		IA - 79.93%		360		01-Nov-2004
38283870 1			256,000.00		253,196.15		26-Jul-2005		7.040%		MI - 80.00%		360		01-Nov-2004
38285014 1			133,600.00		131,639.82		01-Aug-2005		5.490%		WA - 80.00%		360		01-Dec-2004
38285126 1			107,600.00		106,498.66		19-Jul-2005		7.390%		FL - 79.70%		360		01-Nov-2004
38286486 1			263,500.00		260,413.99		01-Jul-2005		6.690%		GA - 85.00%		360		01-Dec-2004
38680736 1			145,600.00		143,832.03		01-Jul-2005		6.500%		CA - 70.00%		360		01-Dec-2004
38681392 1			101,250.00		100,458.59		01-Apr-2005		8.750%		NY - 75.00%		360		01-Dec-2004
38687329 1			165,000.00		164,000.00		01-Jan-2005		9.990%		OK - 75.00%		360		01-Dec-2004
38688457 1			114,000.00		113,310.38		01-Jul-2005		9.999%		MO - 75.00%		360		01-Dec-2004
38689169 1			135,120.00		134,116.10		01-Jan-2005		9.000%		IL - 80.00%		360		01-Dec-2004
41062517 1			124,100.00		123,176.18		01-Mar-2005		8.990%		IL - 85.00%		360		01-Dec-2004
51054187 1			114,000.00		112,846.68		01-Mar-2005		7.450%		AL - 95.00%		360		01-Dec-2004
61054708 1			78,200.00		77,417.46		01-Jul-2005		7.900%		OH - 85.00%		360		01-Nov-2004
61055185 1			115,200.00		114,023.22		01-Jun-2005		7.400%		OH - 80.00%		360		01-Dec-2004
91027898 1			120,000.00		118,604.03		01-Jul-2005		7.500%		IL - 80.00%		360		01-Oct-2004
121035728 1			54,000.00		53,597.97		01-Mar-2005		8.990%		MN - 51.43%		360		01-Dec-2004
131028884 1			122,720.00		121,352.47		01-Jul-2005		6.950%		OH - 80.00%		360		01-Dec-2004
141043046 1			125,000.00		123,986.49		01-Jun-2005		8.150%		NY - 78.13%		360		01-Jan-2005
271016636 1			91,000.00		90,079.45		01-Apr-2005		7.450%		MN - 70.00%		360		01-Dec-2004
321021030 1			171,000.00		169,167.19		01-Sep-2005		7.550%		CO - 95.00%		360		01-Nov-2004
351022024 1			55,250.00		55,053.88		01-Mar-2005		12.100%		TX - 65.00%		360		01-Jan-2005
371022045 1			112,500.00		111,466.01		01-Apr-2005		8.150%		FL - 90.00%		360		01-Dec-2004
371022137 1			78,000.00		77,203.17		01-Jun-2005		7.400%		FL - 63.41%		360		01-Dec-2004
551003609 1			103,500.00		102,674.67		01-Apr-2005		8.650%		OK - 90.00%		360		01-Dec-2004
651006267 1			52,000.00		51,597.73		01-Feb-2005		8.800%		SC - 80.00%		360		01-Dec-2004
731007520 1			306,000.00		303,215.88		01-Jun-2005		7.990%		GA - 85.00%		360		01-Dec-2004


Page 17 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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
741008269 1
			70,200.00		69,402.61		01-Mar-2005		6.850%		OH - 90.00%		360		01-Dec-2004

741008367 1			100,000.00		99,071.63		01-Apr-2005		7.900%		KY - 91.74%		360		01-Dec-2004
841001121 1			106,100.00		104,994.91		01-Jul-2005		7.300%		MI - 79.18%		360		01-Dec-2004
841001404 1			127,500.00		126,213.53		01-Mar-2005		7.500%		MI - 82.79%		360		01-Dec-2004
1833055 2			33,600.00		32,925.21		01-Apr-2005		10.250%		MT - 20.00%		240		01-Nov-2004
1853431 2			30,800.00		30,659.44		01-Mar-2005		11.200%		CO - 20.00%		240		01-Dec-2004
1876539 2			422,750.00		419,023.15		01-Jun-2005		8.150%		MA - 95.00%		360		01-Dec-2004
1888789 2			299,625.00		296,155.84		01-May-2005		6.750%		IL - 85.00%		360		01-Dec-2004
1895226 2			293,840.00		289,734.93		01-Jun-2005		5.750%		OK - 80.00%		360		01-Dec-2004
1904309 2			170,000.00		168,933.78		01-Jun-2005		9.825%		NV - 69.39%		360		01-Dec-2004
38257642 2			188,000.00		185,973.66		01-Aug-2005		7.125%		FL - 80.00%		360		01-Nov-2004
38257746 2			165,000.00		163,633.23		01-Jun-2005		8.850%		IL - 100.00%		360		01-Nov-2004
38258467 2			168,400.00		166,343.54		01-Jul-2005		6.875%		OR - 80.00%		360		01-Nov-2004
38258779 2			100,000.00		98,490.99		01-Aug-2005		7.250%		WA - 80.00%		360		01-Oct-2004
38259299 2			301,600.00		298,712.11		01-Jun-2005		8.250%		MA - 80.00%		360		01-Nov-2004
38260531 2			215,000.00		212,615.72		01-Jul-2005		7.375%		NJ - 89.58%		360		01-Nov-2004
38260595 2			121,500.00		120,523.96		01-Jul-2005		8.999%		IN - 90.00%		360		01-Nov-2004
38681152 2			256,000.00		253,307.52		01-Jul-2005		7.250%		GA - 80.00%		360		01-Dec-2004
38681624 2			130,500.00		129,314.66		01-Jun-2005		7.999%		IN - 90.00%		360		01-Dec-2004
38685001 2			281,250.00		278,015.99		01-Jun-2005		7.300%		CA - 75.00%		360		01-Dec-2004
38685913 2			287,200.00		284,229.48		01-Jul-2005		7.500%		VA - 80.00%		360		01-Dec-2004
38687873 2			162,000.00		160,697.16		01-Aug-2005		8.650%		FL - 90.00%		360		01-Dec-2004
38688881 2			99,200.00		98,131.94		01-Feb-2005		7.129%		IN - 80.00%		360		01-Dec-2004
161037575 2			248,250.00		245,348.16		01-Jul-2005		6.700%		MA - 75.00%		360		01-Dec-2004
321021417 2			264,000.00		261,324.13		01-Mar-2005		7.440%		CO - 80.00%		360		01-Dec-2004
321021473 2			166,500.00		165,032.49		01-Mar-2005		8.150%		UT - 90.00%		360		01-Dec-2004
331030523 2			197,400.00		194,846.98		01-May-2005		6.990%		NY - 75.92%		360		01-Dec-2004
331030853 2			248,000.00		245,563.53		01-Jul-2005		7.600%		NY - 80.00%		360		01-Dec-2004
381017089 2			265,000.00		261,902.28		01-Sep-2005		6.700%		RI - 89.83%		360		01-Dec-2004
611012828 2			160,000.00		158,230.44		01-Jul-2005		6.990%		NY - 62.75%		360		01-Dec-2004
651005867 2			155,000.00		153,763.94		01-Aug-2005		8.650%		RI - 67.39%		360		01-Dec-2004
1809138 3			361,250.00		358,699.45		01-Dec-2004		9.250%		NY - 85.00%		360		01-Dec-2004
1895245 3			73,460.00		73,020.36		01-Jun-2005		10.050%		OK - 20.00%		360		01-Dec-2004
38255834 3			141,714.00		140,575.48		01-Jun-2005		8.999%		IN - 90.00%		360		01-Nov-2004
38255866 3			127,500.00		125,890.06		01-Apr-2005		6.699%		WA - 85.00%		360		01-Nov-2004
38257882 3			86,700.00		85,890.41		01-Mar-2005		8.250%		TN - 85.00%		360		01-Nov-2004
38259995 3			136,000.00		134,448.33		01-Apr-2005		7.250%		PA - 80.00%		360		01-Nov-2004
38260827 3			440,000.00		434,084.11		01-Jul-2005		6.500%		GA - 80.00%		360		01-Nov-2004
38270924 3			71,400.00		70,697.14		09-Feb-2005		7.590%		DE - 85.00%		360		01-Nov-2004
38271180 3			168,000.00		166,195.10		01-Jun-2005		7.140%		PA - 80.00%		360		01-Dec-2004
38271452 3			117,000.00		115,935.47		20-Feb-2005		7.990%		PA - 90.00%		360		01-Nov-2004
38271692 3			92,000.00		91,396.97		01-Jul-2005		9.990%		OH - 79.31%		360		01-Nov-2004
38271732 3			98,100.00		97,086.05		03-Mar-2005		7.340%		IN - 90.00%		360		01-Nov-2004
38271956 3			72,165.00		71,605.25		21-Mar-2005		8.790%		IN - 84.90%		360		01-Nov-2004
38272148 3			109,020.00		108,200.07		19-Feb-2005		8.940%		OH - 79.00%		360		01-Nov-2004
38272868 3			298,400.00		295,224.94		14-Mar-2005		7.190%		FL - 80.00%		360		01-Nov-2004
38273548 3			90,000.00		89,312.72		01-Aug-2005		8.865%		MO - 78.26%		360		01-Dec-2004
38273772 3			164,610.00		162,985.06		01-Apr-2005		7.590%		IL - 89.46%		360		01-Dec-2004
38275373 3			166,500.00		164,658.66		01-Aug-2005		6.990%		CO - 90.00%		360		01-Dec-2004
38277341 3			84,600.00		84,086.69		05-Nov-2004		9.990%		FL - 90.00%		360		01-Nov-2004
38278429 3			135,200.00		133,981.75		04-Feb-2005		8.040%		SD - 80.00%		360		01-Nov-2004


Page 18 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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
38278445 3
			299,920.00		296,672.88		14-Jul-2005		7.100%		MN - 79.98%		360		01-Nov-2004

38280253 3			176,256.00		174,402.25		19-Apr-2005		7.250%		NJ - 78.34%		360		01-Nov-2004
38280293 3			82,000.00		81,484.72		04-Aug-2005		9.440%		CT - 65.60%		360		01-Dec-2004
38281293 3			50,000.00		49,684.47		02-Jun-2005		9.390%		NC - 45.45%		360		01-Dec-2004
38281725 3			272,700.00		269,854.10		29-Jul-2005		7.290%		VA - 90.00%		360		01-Nov-2004
38281901 3			92,200.00		91,513.57		01-Mar-2005		8.990%		OH - 74.35%		360		01-Dec-2004
38282270 3			152,000.00		150,528.11		03-Jul-2005		7.250%		CO - 80.00%		360		01-Dec-2004
38282462 3			60,800.00		60,304.19		25-May-2005		8.540%		IN - 76.00%		360		01-Nov-2004
38282582 3			61,500.00		60,923.54		01-Aug-2005		7.840%		OH - 75.00%		360		01-Dec-2004
38283430 3			468,000.00		463,451.47		01-Aug-2005		7.990%		IL - 80.00%		360		01-Dec-2004
38283854 3			68,000.00		65,695.18		01-Jul-2005		8.740%		MI - 85.00%		360		01-Dec-2004
38680120 3			207,000.00		204,710.90		01-Jul-2005		6.990%		NJ - 90.00%		360		01-Dec-2004
38681200 3			69,700.00		69,039.21		01-Jul-2005		7.999%		IN - 85.00%		360		01-Dec-2004
38682472 3			245,000.00		242,290.68		01-Aug-2005		6.990%		CA - 71.01%		360		01-Dec-2004
38683745 3			235,200.00		235,200.00		01-Apr-2005		5.990%		CA - 80.00%		360		01-Dec-2004
38684249 3			91,500.00		90,667.47		01-Jul-2005		7.990%		TN - 100.00%		360		01-Dec-2004
38684745 3			60,000.00		59,487.75		01-Jul-2005		8.625%		OH - 80.00%		360		01-Dec-2004
61054984 3			57,600.00		57,308.61		01-Jun-2005		10.450%		OH - 65.45%		360		01-Jan-2005
121036044 3			104,500.00		103,606.06		01-May-2005		8.300%		MN - 95.00%		360		01-Dec-2004
131028600 3			85,500.00		84,908.63		01-Apr-2005		9.350%		KY - 94.27%		360		01-Dec-2004
141042829 3			139,500.00		138,199.96		01-Aug-2005		7.600%		CT - 90.00%		360		01-Jan-2005
161036024 3			179,400.00		177,011.23		01-Jul-2005		6.600%		MA - 65.00%		360		01-Nov-2004
231056967 3			310,500.00		307,460.85		01-Sep-2005		7.850%		DE - 90.00%		360		01-Dec-2004
261049243 3			68,250.00		67,864.25		01-May-2005		9.920%		LA - 75.00%		360		01-Jan-2005
271017680 3			99,655.00		98,704.36		01-Mar-2005		7.750%		MN - 95.00%		360		01-Dec-2004
321021776 3			81,500.00		81,170.41		01-May-2005		11.500%		UT - 20.00%		360		01-Jan-2005
341020580 3			72,000.00		71,384.93		01-Aug-2005		8.500%		NC - 90.00%		360		01-Dec-2004
371022078 3			59,500.00		58,937.87		01-Jul-2005		8.350%		FL - 85.00%		360		01-Dec-2004
381016913 3			532,000.00		526,763.31		01-Jul-2005		7.590%		RI - 81.85%		360		01-Dec-2004
521018619 3			50,040.00		49,594.52		01-Jul-2005		8.100%		OH - 90.00%		360		01-Dec-2004
741008097 3			72,000.00		71,197.69		01-Mar-2005		6.950%		OH - 75.00%		360		01-Dec-2004
831027453 3			50,000.00		47,827.58		01-Mar-2005		9.350%		CA - 6.67%		180		01-Sep-2004
841001425 3			109,250.00		108,300.52		01-Apr-2005		7.800%		MI - 95.00%		360		01-Jan-2005
841001570 3			96,750.00		96,029.68		01-Jul-2005		8.990%		MI - 90.00%		360		01-Dec-2004


TOTAL			20,027,155.00		19,827,375.81


Page 19 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS


									Group 3		Group 2		Group 1		Total




Current


Number of Paid in Full Loans								124		122		136		382
Number of Repurchased Loans								0		0		0		0
Total Number of Loans Prepaid in Full								124		122		136		382
Curtailments Amount								53,696.17		9,893.65		22,776.16		86,365.98
Paid in Full Balance								26,958,170.02		22,355,507.80		21,415,263.26		70,728,941.08
Repurchased Loans Balance								0.00		0.00		0.00		0.00
Total Prepayment Amount								27,011,866.19		22,365,401.45		21,438,039.42		70,815,307.06

Cumulative


Number of Paid in Full Loans								808		796		820		2,424
Number of Repurchased Loans								2		1		0		3
Total Number of Loans Prepaid in Full								810		797		820		2,427
Paid in Full Balance								173,126,231.78		147,648,707.92		131,559,756.82		452,334,696.52
Repurchased Loans Balance								502,879.82		65,328.97		0.00		568,208.79
Curtailments Amount								511,482.05		121,764.18		301,878.42		935,124.65
Total Prepayment Amount								174,140,593.65		147,835,801.07		131,861,635.24		453,838,029.96










Page 20 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution

VOLUNTARY PREPAYMENTS RATES


									Group 3		Group 2		Group 1		Total



SMM								6.20%		6.16%		5.55%		5.98%
3 Months Avg SMM								5.17%		5.23%		4.45%		4.96%
12 Months Avg SMM								3.85%		3.87%		3.37%		3.70%
Avg SMM Since Cut-off								3.85%		3.87%		3.37%		3.70%


CPR								53.63%		53.37%		49.62%		52.29%
3 Months Avg CPR								47.12%		47.51%		42.12%		45.68%
12 Months Avg CPR								37.55%		37.75%		33.76%		36.42%
Avg CPR Since Cut-off								37.55%		37.75%		33.76%		36.42%


PSA								2,007.75%		2,015.76%		1,862.94%		1,964.57%
3 Months Avg PSA Approximation								1,906.90%		1,941.73%		1,709.35%		1,856.13%
12 Months Avg PSA Approximation								2,005.05%		2,043.40%		1,810.91%		1,956.17%
Avg PSA Since Cut-off Approximation								2,005.04%		2,043.40%		1,810.91%		1,956.17%










Page 21 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

1797771 2			316,720.00		312,448.21			08-Dec-2005		5.500%		HI - 80.00%		Paid Off - 360		01-Dec-2004

1798886 2			70,000.00		69,598.10			29-Nov-2005		10.250%		NY - 20.00%		Paid Off - 360		01-Nov-2004
1824811 3			75,000.00		74,646.32			08-Dec-2005		11.550%		CA - 20.00%		Paid Off - 360		01-Oct-2004
1832155 1			64,000.00		63,606.74			02-Dec-2005		10.300%		OR - 20.00%		Paid Off - 360		01-Oct-2004
1832399 2			24,000.00		23,654.33			29-Nov-2005		11.100%		UT - 20.00%		Paid Off - 240		01-Dec-2004
1834698 2			52,000.00		51,707.61			02-Dec-2005		10.350%		CA - 20.00%		Paid Off - 360		01-Nov-2004
1835580 1			66,000.00		65,621.13			30-Nov-2005		10.250%		NY - 20.00%		Paid Off - 360		01-Nov-2004
1837147 3			388,000.00		383,580.21			22-Nov-2005		6.400%		NY - 80.00%		Paid Off - 360		01-Dec-2004
1837155 3			97,000.00		96,488.25			22-Nov-2005		10.250%		NY - 20.00%		Paid Off - 360		01-Dec-2004
1840766 1			67,000.00		66,688.73			08-Dec-2005		11.250%		NY - 20.00%		Paid Off - 360		01-Nov-2004
1842908 2			50,400.00		49,823.80			07-Dec-2005		10.300%		MD - 20.00%		Paid Off - 360		01-Nov-2004
1843718 1			65,400.00		65,097.47			30-Nov-2005		11.300%		CA - 20.00%		Paid Off - 360		01-Nov-2004
1845196 2			273,750.00		271,378.56			25-Nov-2005		7.990%		CA - 75.00%		Paid Off - 360		01-Dec-2004
1851867 1			135,248.00		133,982.92			06-Dec-2005		7.850%		FL - 79.09%		Paid Off - 360		01-Nov-2004
1853435 3			100,000.00		96,807.63			22-Nov-2005		10.000%		CA - 20.00%		Paid Off - 360		01-Dec-2004
1855348 1			48,000.00		46,695.88			29-Nov-2005		11.300%		FL - 20.00%		Paid Off - 240		01-Nov-2004
1855953 1			324,000.00		324,000.00			02-Dec-2005		6.500%		AZ - 90.00%		Paid Off - 360		01-Nov-2004
1859493 1			318,750.00		315,278.45			05-Dec-2005		6.700%		NY - 75.00%		Paid Off - 360		01-Dec-2004
1869249 3			375,000.00		370,040.37			30-Nov-2005		5.600%		CA - 75.00%		Paid Off - 360		01-Dec-2004
1871577 1			118,150.00		117,223.32			29-Nov-2005		8.350%		TN - 85.00%		Paid Off - 360		01-Dec-2004
1872222 1			207,000.00		204,725.39			23-Nov-2005		6.850%		NV - 84.49%		Paid Off - 360		01-Dec-2004
1874288 1			35,000.00		34,422.89			05-Dec-2005		10.700%		HI - 20.00%		Paid Off - 240		01-Nov-2004
1875507 1			47,328.00		46,666.82			21-Nov-2005		11.350%		AZ - 20.00%		Paid Off - 240		01-Dec-2004
1875588 1			152,000.00		151,981.70			13-Dec-2005		6.300%		CA - 80.00%		Paid Off - 360		01-Dec-2004
1875876 1			298,800.00		298,800.00			01-Dec-2005		6.300%		NV - 90.00%		Paid Off - 360		01-Nov-2004
1879166 1			140,000.00		139,999.83			23-Nov-2005		8.150%		OR - 82.35%		Paid Off - 360		01-Dec-2004
1881524 1			232,940.00		229,773.17			23-Nov-2005		5.450%		CA - 53.80%		Paid Off - 360		01-Dec-2004
1884405 3			499,000.00		494,444.73			22-Nov-2005		7.550%		NJ - 69.31%		Paid Off - 360		01-Dec-2004
1886635 2			228,750.00		226,731.87			18-Nov-2005		7.725%		CA - 75.00%		Paid Off - 360		01-Dec-2004
1888063 1			180,500.00		180,500.00			17-Nov-2005		6.950%		NV - 95.00%		Paid Off - 360		01-Dec-2004
1889662 3			220,000.00		217,117.05			08-Dec-2005		5.650%		CO - 80.00%		Paid Off - 360		01-Dec-2004
1891945 3			260,000.00		257,002.80			05-Dec-2005		7.700%		TX - 80.00%		Paid Off - 360		01-Dec-2004
1892636 3			531,000.03		530,584.33			08-Dec-2005		7.750%		CA - 90.00%		Paid Off - 360		01-Dec-2004
1892880 2			323,000.00		318,377.10			25-Nov-2005		5.400%		CA - 73.91%		Paid Off - 360		01-Dec-2004
1892922 1			233,500.00		231,450.51			18-Nov-2005		7.750%		CA - 86.48%		Paid Off - 360		01-Dec-2004
1893383 2			288,400.00		283,608.89			09-Dec-2005		5.375%		CA - 80.00%		Paid Off - 360		01-Dec-2004
1893405 2			65,600.00		65,234.50			30-Nov-2005		9.990%		CA - 20.00%		Paid Off - 360		01-Dec-2004
1893455 3			366,000.00		362,907.91			23-Nov-2005		7.990%		VA - 79.91%		Paid Off - 360		01-Dec-2004
1894121 1			108,000.00		106,986.47			17-Nov-2005		7.425%		WI - 86.40%		Paid Off - 360		01-Dec-2004
1894947 3			53,600.00		53,150.26			07-Dec-2005		8.000%		FL - 80.00%		Paid Off - 360		01-Dec-2004
1895479 1			45,600.00		44,857.58			08-Dec-2005		10.800%		UT - 20.00%		Paid Off - 240		01-Nov-2004


Page 23 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

1896298 1			255,000.00		252,783.83			23-Nov-2005		7.800%		CA - 79.94%		Paid Off - 360		01-Dec-2004

1897540 2			69,000.00		68,624.36			06-Dec-2005		10.100%		CA - 20.00%		Paid Off - 360		01-Dec-2004
1898029 1			46,000.00		45,749.54			22-Nov-2005		10.100%		CA - 20.00%		Paid Off - 360		01-Dec-2004
1905877 2			182,750.00		180,955.14			22-Nov-2005		7.175%		IN - 85.00%		Paid Off - 360		01-Dec-2004
1908451 2			272,000.00		270,305.33			29-Nov-2005		9.450%		OH - 85.00%		Paid Off - 360		01-Dec-2004
1909050 1			198,900.00		196,956.15			23-Nov-2005		7.200%		NJ - 79.56%		Paid Off - 360		01-Dec-2004
1910697 1			316,800.00		316,797.63			29-Nov-2005		6.700%		MD - 90.00%		Paid Off - 360		01-Dec-2004
1919110 1			255,000.00		251,338.46			25-Nov-2005		5.150%		NJ - 53.68%		Paid Off - 360		01-Dec-2004
1930169 1			186,100.00		184,547.63			30-Nov-2005		7.550%		OR - 81.62%		Paid Off - 360		01-Jan-2005
1938753 1			213,000.00		210,667.97			29-Nov-2005		6.625%		CA - 53.92%		Paid Off - 360		01-Dec-2004
1943089 1			190,000.00		188,157.23			30-Nov-2005		7.600%		NM - 100.00%		Paid Off - 360		01-Dec-2004
1943215 1			184,000.00		181,736.11			02-Dec-2005		5.990%		CA - 81.78%		Paid Off - 360		01-Dec-2004
1943714 1			313,650.00		309,358.53			05-Dec-2005		5.550%		CA - 85.00%		Paid Off - 360		01-Dec-2004
1954013 1			106,000.00		105,071.44			17-Nov-2005		7.300%		AZ - 92.17%		Paid Off - 360		01-Jan-2005
11071277 2			205,000.00		203,304.41			14-Nov-2005		8.050%		NV - 74.55%		Paid Off - 360		01-Dec-2004
11072017 3			250,600.00		248,668.35			03-Nov-2005		7.950%		CA - 70.00%		Paid Off - 360		01-Jan-2005
21059947 1			320,400.00		317,560.12			01-Nov-2005		7.700%		CA - 90.00%		Paid Off - 360		01-Dec-2004
21060037 3			488,000.00		482,819.77			14-Nov-2005		7.050%		CA - 80.00%		Paid Off - 360		01-Dec-2004
21060318 2			190,000.00		187,826.38			02-Nov-2005		5.900%		CA - 70.11%		Paid Off - 360		01-Jan-2005
21060363 2			104,500.00		104,400.00			07-Nov-2005		6.890%		CA - 95.00%		Paid Off - 360		01-Dec-2004
21060485 2			217,500.00		211,715.40			30-Nov-2005		6.040%		HI - 75.00%		Paid Off - 240		01-Dec-2004
21060551 3			225,000.00		222,059.33			04-Nov-2005		6.950%		CA - 50.00%		Paid Off - 360		01-Jan-2005
31029536 1			198,550.00		196,502.00			07-Nov-2005		7.350%		CA - 82.73%		Paid Off - 360		01-Nov-2004
31029969 2			200,000.00		198,007.27			16-Nov-2005		7.100%		CA - 64.52%		Paid Off - 360		01-Dec-2004
31030030 1			174,200.00		172,829.28			22-Nov-2005		8.300%		CA - 65.00%		Paid Off - 360		01-Dec-2004
31030040 3			160,000.00		158,211.63			17-Nov-2005		6.500%		CA - 55.56%		Paid Off - 360		01-Dec-2004
31030079 3			50,000.00		49,741.72			01-Nov-2005		10.350%		CA - 7.41%		Paid Off - 360		01-Dec-2004
31030222 2			253,500.00		251,564.27			17-Nov-2005		8.450%		CA - 65.00%		Paid Off - 360		01-Dec-2004
36158559 1			240,000.00		236,342.70			15-Nov-2005		6.080%		CA - 75.00%		Paid Off - 360		01-Sep-2004
36160287 3			192,000.00		189,295.36			03-Nov-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Sep-2004
38030462 1			64,400.00		63,834.70			21-Nov-2005		8.500%		OK - 70.00%		Paid Off - 360		01-Oct-2004
38034599 1			230,000.00		226,944.17			02-Nov-2005		6.430%		CA - 67.65%		Paid Off - 360		01-Oct-2004
38036727 1			95,000.00		88,516.36			01-Nov-2005		6.650%		MD - 38.00%		Paid Off - 360		01-Oct-2004
38255290 3			114,750.00		113,997.94			29-Nov-2005		9.625%		MD - 85.00%		Paid Off - 360		01-Nov-2004
38255642 3			97,500.00		96,775.43			23-Nov-2005		8.999%		TN - 75.00%		Paid Off - 360		01-Nov-2004
38255778 3			168,750.00		167,390.63			29-Nov-2005		8.600%		MD - 75.00%		Paid Off - 360		01-Nov-2004
38256362 3			388,000.00		388,000.00			03-Nov-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Oct-2004
38256514 2			119,000.00		117,733.95			30-Nov-2005		7.200%		FL - 85.00%		Paid Off - 360		01-Nov-2004
38256610 2			273,000.00		270,944.29			30-Nov-2005		8.999%		FL - 82.73%		Paid Off - 360		01-Nov-2004
38256674 3			356,000.00		352,433.48			30-Nov-2005		7.500%		CA - 74.95%		Paid Off - 360		01-Nov-2004
38257186 2			88,500.00		87,464.78			29-Nov-2005		6.750%		NY - 75.00%		Paid Off - 360		01-Nov-2004
38257274 3			51,000.00		50,481.09			21-Nov-2005		7.875%		TN - 85.00%		Paid Off - 360		01-Nov-2004
38257338 2			164,706.25		163,052.88			01-Nov-2005		7.490%		NM - 95.00%		Paid Off - 360		01-Nov-2004


Page 24 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

38257434 3			459,000.00		458,742.74			07-Nov-2005		6.125%		CA - 85.00%		Paid Off - 360		01-Nov-2004

38257682 3			476,000.00		470,368.12			28-Nov-2005		6.750%		FL - 80.00%		Paid Off - 360		01-Nov-2004
38258171 2			125,600.00		124,457.16			30-Nov-2005		7.990%		MD - 80.00%		Paid Off - 360		01-Nov-2004
38258219 2			121,645.00		120,229.93			09-Nov-2005		7.500%		MN - 80.00%		Paid Off - 360		01-Sep-2004
38258251 2			225,000.00		222,136.16			25-Nov-2005		6.250%		NY - 67.16%		Paid Off - 360		01-Nov-2004
38258323 2			232,000.00		229,434.39			11-Nov-2005		6.990%		VA - 80.00%		Paid Off - 360		01-Nov-2004
38258339 2			40,000.00		39,608.92			18-Nov-2005		7.625%		TX - 80.00%		Paid Off - 360		01-Nov-2004
38258515 2			133,600.00		132,553.70			30-Nov-2005		8.740%		NC - 80.00%		Paid Off - 360		01-Nov-2004
38258587 2			70,000.00		69,071.56			10-Nov-2005		6.030%		CA - 70.00%		Paid Off - 360		01-Nov-2004
38258867 2			125,000.00		119,524.81			30-Nov-2005		6.625%		NY - 83.33%		Paid Off - 180		01-Nov-2004
38259427 2			78,500.00		77,382.83			03-Nov-2005		5.650%		TX - 23.93%		Paid Off - 360		01-Nov-2004
38259651 2			167,600.00		165,610.71			01-Nov-2005		6.625%		UT - 80.00%		Paid Off - 360		01-Nov-2004
38259851 2			150,000.00		148,177.80			01-Nov-2005		6.500%		NY - 62.50%		Paid Off - 360		01-Nov-2004
38259915 3			145,000.00		143,679.61			30-Nov-2005		7.990%		CA - 52.54%		Paid Off - 360		01-Nov-2004
38260195 2			145,500.00		143,954.39			25-Nov-2005		8.010%		MD - 75.00%		Paid Off - 360		01-Nov-2004
38260483 2			140,550.00		138,425.03			22-Nov-2005		7.500%		WA - 75.00%		Paid Off - 360		01-Nov-2004
38260603 2			204,000.00		201,854.49			09-Nov-2005		7.250%		MN - 80.00%		Paid Off - 360		01-Nov-2004
38267924 1			247,500.00		244,980.92			09-Nov-2005		6.990%		TN - 90.00%		Paid Off - 360		01-Nov-2004
38267932 1			105,000.00		103,895.63			07-Nov-2005		7.250%		FL - 72.41%		Paid Off - 360		01-Oct-2004
38268548 1			123,476.00		122,300.13			17-Nov-2005		7.450%		NC - 79.66%		Paid Off - 360		01-Nov-2004
38268892 1			110,960.00		109,406.73			22-Nov-2005		5.290%		FL - 79.83%		Paid Off - 360		01-Nov-2004
38269004 1			53,600.00		53,068.32			08-Nov-2005		7.990%		VA - 80.00%		Paid Off - 360		01-Nov-2004
38269164 1			117,520.00		116,391.31			07-Nov-2005		7.290%		NC - 79.95%		Paid Off - 360		01-Nov-2004
38269428 1			190,800.00		188,408.37			03-Nov-2005		5.890%		VA - 79.83%		Paid Off - 360		01-Nov-2004
38269644 1			192,000.00		189,808.72			28-Nov-2005		6.390%		CA - 76.80%		Paid Off - 360		01-Nov-2004
38269692 1			64,800.00		64,091.26			10-Nov-2005		6.990%		NC - 76.24%		Paid Off - 360		01-Nov-2004
38269708 1			64,620.00		63,972.18			30-Nov-2005		9.240%		VA - 88.52%		Paid Off - 360		01-Nov-2004
38270356 3			164,050.00		162,554.93			18-Nov-2005		7.690%		OH - 89.64%		Paid Off - 360		01-Nov-2004
38273100 3			184,500.00		181,566.20			30-Nov-2005		7.570%		MO - 90.00%		Paid Off - 360		01-Dec-2004
38273132 3			146,000.00		144,937.68			18-Nov-2005		8.690%		WI - 74.87%		Paid Off - 360		01-Nov-2004
38273420 3			100,000.00		99,056.68			01-Nov-2005		8.670%		IL - 80.00%		Paid Off - 360		01-Dec-2004
38273940 3			63,000.00		62,582.52			09-Nov-2005		9.150%		MI - 90.00%		Paid Off - 360		01-Nov-2004
38274053 3			153,000.00		151,390.83			01-Nov-2005		7.250%		MI - 90.00%		Paid Off - 360		01-Oct-2004
38274061 3			119,000.00		118,150.53			02-Nov-2005		8.790%		MI - 85.00%		Paid Off - 360		01-Nov-2004
38274109 3			79,200.00		78,440.78			10-Nov-2005		7.300%		MI - 80.00%		Paid Off - 360		01-Nov-2004
38274237 3			66,000.00		65,528.30			08-Nov-2005		9.040%		OH - 77.65%		Paid Off - 360		01-Dec-2004
38274765 3			121,000.00		118,250.19			15-Nov-2005		7.390%		RI - 59.02%		Paid Off - 240		01-Nov-2004
38274901 3			216,750.00		214,657.79			01-Nov-2005		7.690%		RI - 85.00%		Paid Off - 360		01-Nov-2004
38275021 3			260,000.00		257,609.88			01-Nov-2005		7.640%		MA - 78.08%		Paid Off - 360		01-Nov-2004
38275045 1			225,000.00		222,480.25			30-Nov-2005		6.490%		MA - 69.88%		Paid Off - 360		01-Nov-2004
38275141 3			279,650.00		277,183.47			02-Nov-2005		7.740%		NY - 84.74%		Paid Off - 360		01-Nov-2004
38275181 1			240,000.00		236,935.36			03-Nov-2005		5.790%		MA - 58.39%		Paid Off - 360		01-Nov-2004
38275405 3			319,500.00		316,152.99			30-Nov-2005		6.840%		CA - 90.00%		Paid Off - 360		01-Dec-2004


Page 25 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

38275493 3			154,850.00		153,328.69			23-Nov-2005		7.600%		NM - 95.00%		Paid Off - 360		01-Nov-2004

38275509 3			308,000.00		304,055.00			14-Nov-2005		6.800%		CA - 80.00%		Paid Off - 360		01-Nov-2004
38275789 3			108,000.00		106,640.95			30-Nov-2005		6.840%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38276101 3			171,000.00		169,139.34			10-Nov-2005		6.990%		IL - 90.00%		Paid Off - 360		01-Nov-2004
38276589 1			315,000.00		311,336.46			09-Nov-2005		6.290%		VA - 90.00%		Paid Off - 360		01-Nov-2004
38276701 1			178,000.00		175,920.02			28-Nov-2005		6.265%		MD - 81.65%		Paid Off - 360		01-Dec-2004
38277453 3			60,000.00		59,418.15			23-Nov-2005		7.240%		FL - 80.00%		Paid Off - 360		01-Nov-2004
38277733 3			185,600.00		183,609.82			10-Nov-2005		7.150%		UT - 68.74%		Paid Off - 360		01-Nov-2004
38277901 3			102,000.00		101,104.63			22-Nov-2005		7.750%		NV - 75.56%		Paid Off - 360		01-Dec-2004
38277981 3			280,500.00		277,821.74			01-Nov-2005		7.320%		AZ - 85.00%		Paid Off - 360		01-Dec-2004
38278277 1			171,700.00		168,988.94			29-Nov-2005		6.250%		MN - 85.00%		Paid Off - 360		01-Jul-2004
38278341 3			140,960.00		139,477.45			01-Nov-2005		7.250%		MN - 78.75%		Paid Off - 360		01-Nov-2004
38278909 1			128,000.00		126,525.27			01-Nov-2005		6.340%		MN - 80.00%		Paid Off - 360		01-Dec-2004
38279077 1			345,000.00		342,048.60			18-Nov-2005		8.300%		CA - 75.00%		Paid Off - 360		01-Nov-2004
38279253 3			108,000.00		107,002.36			02-Nov-2005		7.490%		CA - 74.48%		Paid Off - 360		01-Dec-2004
38279341 1			236,000.00		233,229.33			16-Nov-2005		6.240%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38279477 3			382,000.00		376,087.82			10-Nov-2005		5.190%		CA - 74.76%		Paid Off - 360		01-Nov-2004
38279533 1			293,920.00		290,234.21			16-Nov-2005		5.890%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38280245 3			245,600.00		242,863.06			16-Nov-2005		6.950%		FL - 80.00%		Paid Off - 360		01-Oct-2004
38280285 3			136,000.00		134,936.99			16-Nov-2005		8.750%		VA - 80.00%		Paid Off - 360		01-Nov-2004
38280325 3			164,000.00		162,385.39			02-Nov-2005		7.440%		NJ - 80.00%		Paid Off - 360		01-Nov-2004
38280341 3			292,000.00		289,555.87			10-Nov-2005		7.990%		NJ - 76.84%		Paid Off - 360		01-Nov-2004
38281029 3			463,200.00		458,440.07			16-Nov-2005		6.940%		CA - 89.94%		Paid Off - 360		01-Dec-2004
38281045 3			99,000.00		97,992.34			01-Nov-2005		6.990%		WV - 83.90%		Paid Off - 360		01-Nov-2004
38281173 3			139,500.00		138,107.26			07-Nov-2005		7.090%		GA - 88.85%		Paid Off - 360		01-Nov-2004
38281469 3			88,000.00		86,988.37			18-Nov-2005		6.840%		VA - 80.00%		Paid Off - 360		01-Dec-2004
38281525 3			97,750.00		96,901.99			01-Nov-2005		7.840%		NC - 85.00%		Paid Off - 360		01-Dec-2004
38281645 3			172,000.00		170,551.62			07-Nov-2005		7.960%		NC - 74.78%		Paid Off - 360		01-Dec-2004
38281757 3			89,528.00		88,495.94			11-Nov-2005		10.840%		SC - 79.94%		Paid Off - 360		01-Dec-2004
38282294 3			220,000.00		216,968.22			23-Nov-2005		6.750%		MD - 73.83%		Paid Off - 360		01-Dec-2004
38282694 3			63,750.00		63,143.67			25-Nov-2005		7.340%		IN - 85.00%		Paid Off - 360		01-Nov-2004
38282910 1			106,250.00		105,002.61			25-Nov-2005		6.240%		FL - 85.00%		Paid Off - 360		01-Dec-2004
38282926 1			108,000.00		106,773.88			14-Nov-2005		6.590%		FL - 80.00%		Paid Off - 360		01-Nov-2004
38282942 3			101,600.00		100,624.25			30-Nov-2005		7.290%		FL - 79.38%		Paid Off - 360		01-Nov-2004
38283270 1			180,000.00		178,096.23			04-Nov-2005		6.790%		WI - 72.00%		Paid Off - 360		01-Dec-2004
38283606 1			85,600.00		85,138.81			30-Nov-2005		10.150%		MI - 80.00%		Paid Off - 360		01-Nov-2004
38283894 1			76,400.00		75,721.41			09-Nov-2005		7.690%		MI - 79.58%		Paid Off - 360		01-Nov-2004
38284030 1			308,800.00		305,805.40			08-Nov-2005		7.240%		MA - 80.00%		Paid Off - 360		01-Nov-2004
38284174 3			256,000.00		253,899.26			10-Nov-2005		8.090%		MA - 67.19%		Paid Off - 360		01-Dec-2004
38284382 1			280,000.00		276,834.53			03-Nov-2005		6.440%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38284438 1			310,000.00		306,844.88			22-Nov-2005		6.990%		CA - 84.93%		Paid Off - 360		01-Dec-2004
38284502 1			303,000.00		299,509.12			17-Nov-2005		6.340%		CA - 78.70%		Paid Off - 360		01-Dec-2004
38284846 1			225,000.00		222,631.61			18-Nov-2005		6.815%		FL - 84.91%		Paid Off - 360		01-Dec-2004


Page 26 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

38284998 3			234,000.00		231,451.06			23-Nov-2005		6.790%		OR - 90.00%		Paid Off - 360		01-Dec-2004

38285134 1			233,750.00		230,681.12			16-Nov-2005		5.640%		FL - 64.93%		Paid Off - 360		01-Nov-2004
38285494 1			104,000.00		103,204.17			10-Nov-2005		8.440%		OR - 80.00%		Paid Off - 360		01-Dec-2004
38286158 3			293,250.00		289,154.75			02-Nov-2005		6.840%		CA - 83.31%		Paid Off - 360		01-Dec-2004
38286614 1			169,000.00		167,486.04			29-Nov-2005		7.690%		NJ - 66.93%		Paid Off - 360		01-Dec-2004
38286638 3			364,000.00		358,975.98			09-Nov-2005		5.590%		NJ - 80.00%		Paid Off - 360		01-Dec-2004
38286654 3			248,000.00		245,924.16			02-Nov-2005		7.990%		NJ - 80.00%		Paid Off - 360		01-Dec-2004
38679688 2			157,700.00		155,861.84			30-Nov-2005		7.490%		VA - 95.00%		Paid Off - 360		01-Sep-2004
38679960 3			42,500.00		42,097.82			21-Nov-2005		8.750%		TN - 85.00%		Paid Off - 360		01-Sep-2004
38680096 1			242,400.00		239,816.53			15-Nov-2005		6.750%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38680504 2			161,500.00		159,974.34			16-Nov-2005		7.375%		NJ - 85.00%		Paid Off - 360		01-Dec-2004
38680536 1			101,250.00		100,334.62			17-Nov-2005		7.600%		VT - 75.00%		Paid Off - 360		01-Dec-2004
38680544 2			276,000.00		272,909.15			23-Nov-2005		6.490%		NY - 80.00%		Paid Off - 360		01-Dec-2004
38680688 2			131,920.00		130,498.92			30-Nov-2005		6.875%		AL - 80.00%		Paid Off - 360		01-Dec-2004
38680872 2			341,428.00		338,269.98			25-Nov-2005		7.500%		CA - 90.00%		Paid Off - 360		01-Dec-2004
38680968 2			283,000.00		279,683.81			15-Nov-2005		6.250%		NY - 87.08%		Paid Off - 360		01-Dec-2004
38681096 1			185,000.00		183,393.91			02-Nov-2005		7.990%		TX - 74.15%		Paid Off - 360		01-Dec-2004
38681104 2			91,100.00		90,314.21			21-Nov-2005		8.299%		MD - 67.48%		Paid Off - 360		01-Dec-2004
38681240 2			#######		163,655.35			16-Nov-2005		8.125%		MD - 62.74%		Paid Off - 360		01-Dec-2004
38681592 2			52,000.00		51,524.05			21-Nov-2005		7.750%		VT - 80.00%		Paid Off - 360		01-Dec-2004
38681608 3			342,000.00		339,137.28			29-Nov-2005		7.990%		NY - 90.00%		Paid Off - 360		01-Dec-2004
38682448 2			139,050.00		136,903.72			08-Nov-2005		7.990%		FL - 90.00%		Paid Off - 360		01-Dec-2004
38682536 2			165,750.00		163,834.08			01-Nov-2005		6.759%		MI - 85.00%		Paid Off - 360		01-Nov-2004
38682720 3			425,000.00		419,274.78			02-Nov-2005		5.500%		CA - 77.27%		Paid Off - 360		01-Dec-2004
38682864 2			146,200.00		144,596.09			17-Nov-2005		6.599%		AL - 86.00%		Paid Off - 360		01-Dec-2004
38683265 1			120,000.00		118,540.22			25-Nov-2005		6.125%		NY - 80.00%		Paid Off - 360		01-Dec-2004
38683289 2			308,800.00		306,345.56			03-Nov-2005		8.250%		MD - 80.00%		Paid Off - 360		01-Dec-2004
38683793 3			57,000.00		55,781.21			23-Nov-2005		7.990%		TN - 75.00%		Paid Off - 360		01-Dec-2004
38683993 2			108,900.00		107,793.72			17-Nov-2005		7.000%		FL - 90.00%		Paid Off - 360		01-Dec-2004
38684137 2			196,987.00		195,891.71			01-Nov-2005		9.999%		CO - 85.00%		Paid Off - 360		01-Dec-2004
38684177 3			126,500.00		124,630.04			08-Nov-2005		6.690%		CT - 60.24%		Paid Off - 360		01-Dec-2004
38684297 2			144,000.00		142,534.40			25-Nov-2005		6.990%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38684537 2			197,200.00		195,177.33			10-Nov-2005		6.950%		MD - 80.00%		Paid Off - 360		01-Dec-2004
38684913 2			134,400.00		133,032.07			09-Nov-2005		6.990%		NJ - 80.00%		Paid Off - 360		01-Dec-2004
38685041 3			328,000.00		327,999.98			10-Nov-2005		6.250%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38685609 2			190,000.00		188,560.76			25-Nov-2005		8.490%		OR - 69.09%		Paid Off - 360		01-Dec-2004
38685617 2			56,250.00		54,550.78			02-Nov-2005		7.500%		NY - 75.00%		Paid Off - 360		01-Dec-2004
38686073 1			250,400.00		248,202.25			01-Nov-2005		7.750%		NJ - 80.00%		Paid Off - 360		01-Dec-2004
38686705 2			140,000.00		138,818.29			16-Nov-2005		7.490%		OH - 80.00%		Paid Off - 360		01-Dec-2004
38686873 2			82,875.00		82,226.08			16-Nov-2005		8.750%		VA - 85.00%		Paid Off - 360		01-Nov-2004
38686905 1			130,000.00		129,275.77			16-Nov-2005		9.990%		MD - 69.89%		Paid Off - 360		01-Dec-2004
38686921 3			87,000.00		86,209.19			18-Nov-2005		7.999%		OH - 100.00%		Paid Off - 360		01-Nov-2004
38687169 1			126,400.00		123,931.82			21-Nov-2005		9.500%		IL - 80.00%		Paid Off - 360		01-Dec-2004


Page 27 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

38687233 2			176,798.40		176,634.61			22-Nov-2005		6.250%		OR - 80.00%		Paid Off - 360		01-Dec-2004

38687377 3			288,000.00		284,699.15			23-Nov-2005		6.990%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38687489 3			84,000.00		83,125.84			09-Nov-2005		6.875%		FL - 89.36%		Paid Off - 360		01-Dec-2004
38688377 2			190,000.00		188,248.48			23-Nov-2005		7.500%		CA - 80.00%		Paid Off - 360		01-Dec-2004
38688657 2			95,200.00		94,322.32			25-Nov-2005		7.500%		MD - 85.00%		Paid Off - 360		01-Dec-2004
41062497 3			203,400.00		200,721.11			15-Nov-2005		6.150%		IL - 90.00%		Paid Off - 360		01-Dec-2004
41062613 3			210,750.00		208,749.52			15-Nov-2005		7.350%		IL - 75.00%		Paid Off - 360		01-Dec-2004
41062932 2			198,000.00		196,740.71			17-Nov-2005		9.350%		IL - 75.00%		Paid Off - 360		01-Dec-2004
51054230 2			143,920.00		142,422.38			11-Nov-2005		7.450%		GA - 80.00%		Paid Off - 360		01-Dec-2004
61055058 1			112,500.00		111,217.33			22-Nov-2005		6.750%		OH - 90.00%		Paid Off - 360		01-Dec-2004
71062861 2			164,000.00		162,747.73			21-Nov-2005		8.450%		FL - 80.00%		Paid Off - 360		01-Dec-2004
81051101 3			246,905.00		244,372.70			04-Nov-2005		6.950%		VA - 95.00%		Paid Off - 360		01-Dec-2004
81051775 1			126,350.00		124,990.47			07-Nov-2005		6.700%		VA - 95.00%		Paid Off - 360		01-Dec-2004
81051863 3			340,000.00		336,986.39			02-Nov-2005		7.700%		VA - 85.00%		Paid Off - 360		01-Dec-2004
81052024 1			168,750.00		167,183.26			15-Nov-2005		7.000%		VA - 75.00%		Paid Off - 360		01-Jan-2005
91028890 1			84,660.00		83,924.28			29-Nov-2005		7.800%		MO - 54.62%		Paid Off - 360		01-Dec-2004
101043950 1			148,800.00		147,448.87			17-Nov-2005		8.000%		FL - 80.00%		Paid Off - 360		01-Nov-2004
101044088 1			124,000.00		123,135.46			15-Nov-2005		8.900%		FL - 70.86%		Paid Off - 360		01-Dec-2004
101044318 3			397,600.00		394,473.94			16-Nov-2005		7.850%		TX - 80.00%		Paid Off - 360		01-Jan-2005
121035494 2			144,000.00		142,985.71			10-Nov-2005		8.850%		WI - 84.76%		Paid Off - 360		01-Dec-2004
121035946 2			195,500.00		193,608.23			01-Nov-2005		7.500%		MN - 85.00%		Paid Off - 360		01-Jan-2005
131028998 1			137,250.00		135,972.24			01-Nov-2005		7.450%		OH - 89.12%		Paid Off - 360		01-Dec-2004
141041651 2			330,025.00		326,194.08			21-Nov-2005		6.300%		NY - 77.65%		Paid Off - 360		01-Dec-2004
141042169 2			180,000.00		178,009.47			02-Nov-2005		6.990%		CT - 78.26%		Paid Off - 360		01-Nov-2004
141042238 2			220,000.00		218,218.42			15-Nov-2005		7.800%		NY - 80.00%		Paid Off - 360		01-Jan-2005
151026283 3			118,950.00		117,694.31			29-Nov-2005		6.800%		PA - 65.00%		Paid Off - 360		01-Dec-2004
161037049 1			119,700.00		118,424.31			29-Nov-2005		6.750%		CT - 95.00%		Paid Off - 360		01-Dec-2004
161037486 3			254,000.00		251,318.79			02-Nov-2005		6.800%		MA - 79.87%		Paid Off - 360		01-Dec-2004
161037663 3			439,920.00		435,904.16			25-Nov-2005		7.550%		MA - 80.00%		Paid Off - 360		01-Dec-2004
161037706 1			106,600.00		105,537.80			11-Nov-2005		7.100%		MA - 62.34%		Paid Off - 360		01-Dec-2004
191020965 2			172,500.00		170,604.57			11-Nov-2005		6.590%		WA - 75.00%		Paid Off - 360		01-Dec-2004
191021033 2			148,000.00		146,348.33			02-Nov-2005		6.700%		WA - 80.00%		Paid Off - 360		01-Dec-2004
191021068 1			165,300.00		163,700.08			29-Nov-2005		7.250%		WA - 95.00%		Paid Off - 360		01-Dec-2004
191021241 1			133,250.00		132,232.51			23-Nov-2005		8.450%		CA - 65.00%		Paid Off - 360		01-Dec-2004
191021366 3			140,000.00		138,536.27			07-Nov-2005		6.850%		AZ - 92.72%		Paid Off - 360		01-Dec-2004
191021417 3			100,000.00		98,834.14			15-Nov-2005		6.650%		WA - 33.90%		Paid Off - 360		01-Dec-2004
191021615 1			162,000.00		160,763.03			15-Nov-2005		8.450%		OR - 64.80%		Paid Off - 360		01-Dec-2004
211024053 1			220,800.00		218,683.63			17-Nov-2005		7.300%		MD - 69.00%		Paid Off - 360		01-Dec-2004
211024075 1			82,960.85		82,329.63			10-Nov-2005		8.950%		NC - 85.00%		Paid Off - 360		01-Dec-2004
211024400 1			313,400.00		310,781.94			17-Nov-2005		8.000%		GA - 95.00%		Paid Off - 360		01-Dec-2004
231054882 2			220,800.00		218,804.10			21-Nov-2005		7.600%		RI - 73.60%		Paid Off - 360		01-Dec-2004
231056006 2			204,000.00		202,006.32			17-Nov-2005		7.200%		NJ - 80.00%		Paid Off - 360		01-Dec-2004
231056299 3			220,000.00		217,478.78			02-Nov-2005		7.450%		NJ - 57.14%		Paid Off - 360		01-Dec-2004


Page 28 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

231056510 1			118,915.00		117,795.21			14-Nov-2005		8.000%		CT - 85.00%		Paid Off - 360		01-Dec-2004

231056554 2			279,000.00		276,621.57			04-Nov-2005		7.990%		NY - 90.00%		Paid Off - 360		01-Dec-2004
231056569 2			170,910.00		169,207.08			08-Nov-2005		7.100%		PA - 90.00%		Paid Off - 360		01-Dec-2004
231056631 3			300,000.00		297,174.50			04-Nov-2005		7.390%		MA - 80.00%		Paid Off - 360		01-Dec-2004
231056818 2			220,000.00		217,971.98			03-Nov-2005		7.500%		MA - 80.00%		Paid Off - 360		01-Dec-2004
231056939 2			202,400.00		200,658.26			21-Nov-2005		7.850%		MA - 80.00%		Paid Off - 360		01-Dec-2004
231057128 3			71,010.00		70,398.92			21-Nov-2005		7.850%		NY - 90.00%		Paid Off - 360		01-Dec-2004
231057486 2			177,000.00		175,040.28			09-Nov-2005		6.550%		MA - 76.96%		Paid Off - 360		01-Dec-2004
231057501 1			180,200.00		178,803.24			17-Nov-2005		8.390%		NH - 85.00%		Paid Off - 360		01-Dec-2004
231057757 3			101,200.00		100,212.25			07-Nov-2005		6.740%		VT - 80.00%		Paid Off - 360		01-Jan-2005
231058458 3			375,920.00		371,632.53			29-Nov-2005		6.650%		MA - 80.00%		Paid Off - 360		01-Dec-2004
251033086 3			137,000.00		135,555.57			01-Nov-2005		7.250%		WA - 74.05%		Paid Off - 360		01-Nov-2004
251033968 3			408,000.00		404,757.15			28-Nov-2005		8.250%		CA - 80.00%		Paid Off - 360		01-Dec-2004
251034196 2			273,000.00		269,552.52			30-Nov-2005		5.850%		CA - 65.00%		Paid Off - 360		01-Dec-2004
261048834 1			108,500.00		107,519.23			02-Nov-2005		7.600%		FL - 70.00%		Paid Off - 360		01-Dec-2004
261049246 1			128,800.00		127,491.63			21-Nov-2005		7.000%		LA - 80.00%		Paid Off - 360		01-Dec-2004
261049522 2			158,320.00		156,499.51			22-Nov-2005		6.350%		FL - 80.00%		Paid Off - 360		01-Dec-2004
261049557 1			100,000.00		99,273.92			21-Nov-2005		8.250%		FL - 80.00%		Paid Off - 360		01-Jan-2005
271015724 3			270,300.00		267,927.65			01-Nov-2005		7.750%		CA - 58.76%		Paid Off - 360		01-Dec-2004
271016247 1			100,800.00		99,665.90			21-Nov-2005		6.900%		FL - 90.00%		Paid Off - 360		01-Nov-2004
271016739 1			157,500.00		155,843.83			17-Nov-2005		6.990%		WI - 90.00%		Paid Off - 360		01-Dec-2004
271017213 1			107,950.00		107,017.31			18-Nov-2005		8.250%		MD - 85.00%		Paid Off - 360		01-Nov-2004
281013007 2			310,400.00		307,108.28			01-Nov-2005		6.776%		MA - 87.44%		Paid Off - 360		01-Dec-2004
311025024 2			216,750.00		214,509.86			03-Nov-2005		6.440%		NJ - 85.00%		Paid Off - 360		01-Jan-2005
321020869 1			50,000.00		49,260.44			02-Nov-2005		6.650%		CO - 38.17%		Paid Off - 360		01-Nov-2004
321021064 2			161,600.00		159,383.89			01-Nov-2005		5.850%		UT - 80.00%		Paid Off - 360		01-Nov-2004
321021165 1			245,000.00		243,393.88			22-Nov-2005		9.300%		CA - 70.00%		Paid Off - 360		01-Dec-2004
321021177 3			471,750.00		467,401.29			25-Nov-2005		7.500%		CO - 69.89%		Paid Off - 360		01-Dec-2004
321021362 3			102,000.00		100,683.65			10-Nov-2005		6.050%		WY - 80.00%		Paid Off - 360		01-Dec-2004
331030501 1			112,000.00		110,991.18			01-Nov-2005		7.990%		NY - 70.00%		Paid Off - 360		01-Dec-2004
331030548 2			246,600.00		243,941.56			01-Nov-2005		6.690%		NY - 90.00%		Paid Off - 360		01-Dec-2004
331031062 3			414,000.00		408,906.51			25-Nov-2005		5.990%		NY - 90.00%		Paid Off - 360		01-Dec-2004
331031115 2			144,000.00		142,279.88			03-Nov-2005		6.150%		NY - 80.00%		Paid Off - 360		01-Dec-2004
331031246 2			240,000.00		229,737.29			16-Nov-2005		5.950%		NY - 49.48%		Paid Off - 180		01-Dec-2004
331031252 1			119,700.00		118,669.94			16-Nov-2005		7.850%		NJ - 90.00%		Paid Off - 360		01-Dec-2004
331031506 2			284,000.00		280,764.94			15-Nov-2005		6.400%		NY - 80.00%		Paid Off - 360		01-Dec-2004
331031574 3			650,000.00		645,511.78			01-Nov-2005		8.500%		NY - 52.00%		Paid Off - 360		01-Jan-2005
341020230 3			139,320.00		137,853.68			10-Nov-2005		7.250%		NC - 90.00%		Paid Off - 360		01-Nov-2004
351022191 1			84,000.00		83,471.21			17-Nov-2005		9.400%		TX - 75.00%		Paid Off - 360		01-Dec-2004
361021500 1			63,750.00		63,314.29			07-Nov-2005		8.550%		MI - 79.69%		Paid Off - 360		01-Jan-2005
361021865 3			81,250.00		80,423.08			01-Nov-2005		6.990%		MI - 65.00%		Paid Off - 360		01-Dec-2004
371019879 1			97,200.00		96,366.17			02-Nov-2005		7.900%		FL - 90.00%		Paid Off - 360		01-Dec-2004
371021984 2			184,536.00		182,801.32			11-Nov-2005		7.400%		FL - 90.00%		Paid Off - 360		01-Dec-2004


Page 29 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

371022006 1			123,500.00		122,602.24			15-Nov-2005		8.700%		FL - 95.00%		Paid Off - 360		01-Dec-2004

371022046 1			125,584.00		124,379.92			01-Nov-2005		7.300%		FL - 80.00%		Paid Off - 360		01-Dec-2004
381015558 2			179,999.00		177,967.97			25-Nov-2005		6.450%		NY - 80.00%		Paid Off - 360		01-Dec-2004
381015957 2			212,500.00		210,560.22			03-Nov-2005		7.550%		RI - 85.00%		Paid Off - 360		01-Dec-2004
381016117 3			240,000.00		237,389.86			08-Nov-2005		6.990%		CT - 39.34%		Paid Off - 360		01-Dec-2004
381016816 2			203,000.00		200,287.58			16-Nov-2005		5.990%		RI - 70.00%		Paid Off - 360		01-Nov-2004
381016916 3			140,125.00		138,750.44			01-Nov-2005		7.190%		CT - 95.00%		Paid Off - 360		01-Dec-2004
381016945 2			154,000.00		152,291.70			15-Nov-2005		6.540%		MA - 70.00%		Paid Off - 360		01-Dec-2004
381016955 3			70,000.00		69,282.10			25-Nov-2005		6.950%		MA - 59.32%		Paid Off - 360		01-Dec-2004
381017059 3			567,000.00		567,000.00			11-Nov-2005		6.750%		MA - 77.14%		Paid Off - 360		01-Dec-2004
381017074 2			250,000.00		247,411.14			23-Nov-2005		6.900%		MA - 93.63%		Paid Off - 360		01-Dec-2004
381017105 2			180,800.00		178,830.35			25-Nov-2005		6.690%		RI - 80.00%		Paid Off - 360		01-Dec-2004
381017118 1			135,500.00		134,310.73			23-Nov-2005		7.750%		RI - 67.75%		Paid Off - 360		01-Dec-2004
381017146 2			180,000.00		176,563.31			01-Nov-2005		6.900%		RI - 64.29%		Paid Off - 360		01-Dec-2004
381017349 2			215,000.00		212,978.92			18-Nov-2005		7.400%		RI - 77.06%		Paid Off - 360		01-Dec-2004
381017360 2			218,000.00		215,547.60			01-Nov-2005		5.990%		MA - 58.92%		Paid Off - 360		01-Jan-2005
381017390 2			250,000.00		247,926.11			23-Nov-2005		7.590%		RI - 90.91%		Paid Off - 360		01-Jan-2005
381017436 3			255,000.00		252,224.71			29-Nov-2005		6.640%		RI - 85.00%		Paid Off - 360		01-Dec-2004
521020591 1			156,750.00		155,372.41			23-Nov-2005		7.750%		VA - 95.00%		Paid Off - 360		01-Dec-2004
521020732 3			93,520.00		92,691.28			30-Nov-2005		7.900%		WI - 80.00%		Paid Off - 360		01-Jan-2005
521020773 3			84,000.00		83,453.84			18-Nov-2005		8.800%		AL - 80.00%		Paid Off - 360		01-Jan-2005
561000813 1			213,750.00		212,101.32			25-Nov-2005		8.400%		FL - 77.45%		Paid Off - 360		01-Dec-2004
611012094 3			412,300.00		407,863.76			11-Nov-2005		6.700%		NY - 95.00%		Paid Off - 360		01-Dec-2004
611012797 2			336,000.00		331,440.45			03-Nov-2005		6.125%		NY - 82.96%		Paid Off - 360		01-Dec-2004
611012906 2			330,000.00		274,149.65			01-Nov-2005		6.250%		NY - 84.62%		Paid Off - 180		01-Dec-2004
611012952 2			227,696.00		225,662.39			28-Nov-2005		7.200%		NY - 60.72%		Paid Off - 360		01-Jan-2005
611013147 2			296,000.00		292,828.89			29-Nov-2005		6.250%		NY - 73.09%		Paid Off - 360		01-Jan-2005
621004528 2			170,850.00		169,332.68			30-Nov-2005		7.690%		FL - 85.00%		Paid Off - 360		01-Dec-2004
621004586 1			124,000.00		122,533.28			23-Nov-2005		6.200%		FL - 80.00%		Paid Off - 360		01-Dec-2004
621005028 3			440,000.00		433,761.79			29-Nov-2005		7.100%		FL - 80.00%		Paid Off - 360		01-Dec-2004
621005092 2			184,000.00		182,287.20			02-Nov-2005		7.450%		FL - 80.00%		Paid Off - 360		01-Dec-2004
621005146 2			120,000.00		119,219.84			07-Nov-2005		9.850%		FL - 71.43%		Paid Off - 360		01-Jan-2005
631004531 2			285,000.00		282,096.52			28-Nov-2005		7.000%		CA - 83.82%		Paid Off - 360		01-Dec-2004
631004713 1			155,000.00		153,286.37			01-Nov-2005		6.750%		CA - 38.75%		Paid Off - 360		01-Dec-2004
651005819 1			148,000.00		146,696.28			22-Nov-2005		7.750%		FL - 88.10%		Paid Off - 360		01-Dec-2004
651006275 3			375,767.00		375,766.30			23-Nov-2005		6.650%		SC - 80.00%		Paid Off - 360		01-Dec-2004
651006433 2			218,800.00		216,688.88			09-Nov-2005		6.800%		MA - 80.00%		Paid Off - 360		01-Jan-2005
661002028 3			370,500.00		366,602.88			01-Nov-2005		7.250%		CA - 95.00%		Paid Off - 360		01-Nov-2004
661002413 1			204,250.00		204,114.76			29-Nov-2005		7.450%		CA - 92.00%		Paid Off - 360		01-Dec-2004
661002719 2			259,250.00		256,836.63			21-Nov-2005		7.450%		CA - 85.00%		Paid Off - 360		01-Dec-2004
661002848 2			164,500.00		163,038.03			02-Nov-2005		7.690%		CA - 70.00%		Paid Off - 360		01-Dec-2004
681000775 3			115,000.00		113,809.13			30-Nov-2005		6.900%		NH - 65.71%		Paid Off - 360		01-Dec-2004
681002671 1			152,000.00		150,767.52			15-Nov-2005		8.150%		ME - 80.00%		Paid Off - 360		01-Dec-2004


Page 30 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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

691000523 2			175,700.00		173,773.34			02-Nov-2005		7.450%		MD - 70.00%		Paid Off - 360		01-Oct-2004

691001255 1			292,000.00		289,462.30			01-Nov-2005		7.800%		MD - 63.48%		Paid Off - 360		01-Dec-2004
691001302 1			167,200.00		167,200.00			08-Nov-2005		7.200%		MD - 80.00%		Paid Off - 360		01-Dec-2004
691001366 2			170,000.00		168,463.24			16-Nov-2005		7.600%		MD - 85.00%		Paid Off - 360		01-Dec-2004
691001387 2			196,650.00		196,650.00			02-Nov-2005		7.650%		VA - 95.00%		Paid Off - 360		01-Jan-2005
711004506 1			119,000.00		117,836.98			30-Nov-2005		7.200%		ME - 61.66%		Paid Off - 360		01-Dec-2004
711004723 1			242,000.00		239,747.03			01-Nov-2005		7.450%		MA - 67.22%		Paid Off - 360		01-Dec-2004
711004728 1			127,500.00		126,279.50			15-Nov-2005		7.350%		ME - 85.00%		Paid Off - 360		01-Dec-2004
711004962 1			92,000.00		91,345.43			15-Nov-2005		8.800%		NY - 56.44%		Paid Off - 360		01-Dec-2004
711005053 2			144,000.00		142,810.57			08-Nov-2005		7.600%		RI - 82.29%		Paid Off - 360		01-Jan-2005
721004616 1			144,800.00		142,991.31			01-Nov-2005		6.350%		AZ - 80.00%		Paid Off - 360		01-Nov-2004
721004940 1			100,000.00		98,882.24			30-Nov-2005		6.500%		AZ - 80.00%		Paid Off - 360		01-Dec-2004
721005027 2			200,000.00		198,028.93			01-Nov-2005		7.400%		AZ - 80.00%		Paid Off - 360		01-Dec-2004
721005074 3			161,000.00		159,234.33			02-Nov-2005		6.600%		CA - 70.00%		Paid Off - 360		01-Dec-2004
721005147 2			150,000.00		148,367.51			11-Nov-2005		6.640%		AZ - 84.75%		Paid Off - 360		01-Dec-2004
731007196 2			152,000.00		150,528.84			02-Nov-2005		7.250%		GA - 84.44%		Paid Off - 360		01-Dec-2004
731007651 1			170,000.00		168,273.18			23-Nov-2005		7.000%		MD - 82.93%		Paid Off - 360		01-Dec-2004
731007709 1			81,700.00		80,981.80			02-Nov-2005		7.750%		VA - 95.00%		Paid Off - 360		01-Dec-2004
741007880 3			90,250.00		89,496.13			17-Nov-2005		8.000%		OH - 95.00%		Paid Off - 360		01-Dec-2004
741008008 3			87,400.00		86,790.62			25-Nov-2005		8.900%		MS - 95.00%		Paid Off - 360		01-Dec-2004
761004049 1			131,750.00		130,267.62			28-Nov-2005		6.900%		MN - 85.00%		Paid Off - 360		01-Nov-2004
761004936 1			96,800.00		95,835.20			10-Nov-2005		7.100%		WI - 80.00%		Paid Off - 360		01-Dec-2004
761005526 1			90,000.00		89,278.38			09-Nov-2005		8.050%		IN - 69.23%		Paid Off - 360		01-Jan-2005
771002596 2			280,000.00		277,443.95			01-Nov-2005		7.550%		TX - 80.00%		Paid Off - 360		01-Dec-2004
771002916 3			87,200.00		86,714.12			15-Nov-2005		9.550%		TX - 80.00%		Paid Off - 360		01-Jan-2005
771003068 1			63,950.00		63,512.84			08-Nov-2005		8.550%		TX - 67.32%		Paid Off - 360		01-Jan-2005
781000794 2			237,500.00		234,670.58			03-Nov-2005		6.600%		NJ - 95.00%		Paid Off - 360		01-Nov-2004
781001188 2			154,800.00		153,212.26			01-Nov-2005		6.950%		NJ - 90.00%		Paid Off - 360		01-Dec-2004
791000208 1			102,000.00		101,427.02			04-Nov-2005		9.950%		KS - 85.00%		Paid Off - 360		01-Dec-2004
791000506 3			101,000.00		100,195.62			18-Nov-2005		8.240%		MO - 91.82%		Paid Off - 360		01-Dec-2004
831029462 1			125,250.00		124,077.42			01-Nov-2005		8.600%		OH - 75.00%		Paid Off - 360		01-Sep-2004
831030043 3			405,000.00		405,000.00			30-Nov-2005		7.200%		CA - 90.00%		Paid Off - 360		01-Nov-2004
841000854 3			54,000.00		53,689.58			01-Nov-2005		9.850%		MI - 75.00%		Paid Off - 360		01-Dec-2004
841001564 1			110,000.00		109,248.05			17-Nov-2005		8.550%		MI - 57.29%		Paid Off - 360		01-Jan-2005
1000049995 2			300,000.00		296,309.02			01-Dec-2005		5.990%		CA - 69.77%		Paid Off - 360		01-Dec-2004
1000053373 2			145,000.00		143,490.27			13-Dec-2005		7.000%		CA - 57.31%		Paid Off - 360		01-Dec-2004
1000055923 3			380,000.00		380,000.00			17-Nov-2005		7.950%		CA - 95.00%		Paid Off - 360		01-Dec-2004
1000060016 3			80,000.00		79,445.54			30-Nov-2005		9.500%		CA - 20.00%		Paid Off - 360		01-Dec-2004
1000073761 1			238,500.00		238,499.96			02-Dec-2005		7.990%		CA - 90.00%		Paid Off - 360		01-Dec-2004
1000083180 1			84,500.00		83,450.16			18-Nov-2005		5.990%		FL - 65.00%		Paid Off - 360		01-Dec-2004


TOTAL			71,481,992.53		70,728,941.08



Page 31 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



									Group 3		Group 2		Group 1		Total


Current




Number of Loans Liquidated								2		3		0		5
Collateral Principal Realized Loss/(Gain) Amount								26,115.35		145,843.62		-250.17		171,708.80
Collateral Interest Realized Loss/(Gain) Amount								0.00		0.00		0.00		0.00
Net Liquidation Proceeds								137,317.60		329,447.96		250.17		467,015.73

Cumulative




Number of Loans Liquidated								3		6		3		12
Collateral Realized Loss/(Gain) Amount								25,172.86		443,635.74		51,520.66		520,329.26
Net Liquidation Proceeds								254,733.87		661,065.90		408,171.70		1,323,971.47










Page 32 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution


DEFAULT SPEEDS



									Group 3		Group 2		Group 1		Total



MDR								0.04%		0.13%		0.00%		0.05%
3 Months Avg MDR								0.02%		0.10%		0.02%		0.04%
12 Months Avg MDR								0.01%		0.03%		0.01%		0.02%
Avg MDR Since Cut-off								0.01%		0.03%		0.01%		0.02%


CDR								0.45%		1.53%		0.00%		0.64%
3 Months Avg CDR								0.25%		1.14%		0.26%		0.53%
12 Months Avg CDR								0.08%		0.38%		0.14%		0.19%
Avg CDR Since Cut-off								0.08%		0.38%		0.14%		0.19%


SDA								1.67%		5.76%		0.00%		2.40%
3 Months Avg SDA Approximation								1.01%		4.67%		1.06%		2.16%
12 Months Avg SDA Approximation								0.44%		2.07%		0.75%		1.04%
Avg SDA Since Cut-off Approximation								0.44%		2.07%		0.75%		1.04%


Loss Severity Approximation for Current Period								15.98%		30.69%		0.00%		26.88%
3 Months Avg Loss Severity Approximation								5.06%		31.70%		0.95%		26.61%
12 Months Avg Loss Severity Approximation								1.69%		10.57%		2.95%		11.50%
Avg Loss Severity Approximation Since Cut-off								1.69%		10.57%		2.95%		11.50%












Page 33 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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 34 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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)

38259467 2
			9.275%		MI - 80.00%		360		112,802.01				23,498.20		0.00

38260363 2			9.259%		MI - 70.00%		360		100,089.57				1,298.73		0.00
38260435 2			7.500%		GA - 80.00%		360		262,400.00				121,046.69		0.00
38256226 3			8.250%		TX - 80.00%		360		81,745.00				12,647.02		0.00
38260211 3			8.250%		TX - 80.00%		360		81,687.95				13,468.33		0.00
38279997 3					GA - 79.46%		360				Revision		-250.17


TOTAL									638,724.53			171,708.80		0.00



Page 35 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 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								1,123,402,567.82
						Prior period Senior Enhancement Percentage								24.5700%



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 36 of 37
Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

December 27, 2005 Distribution
Other Related Information
ADDITIONAL INFORMATION

								Group 3		Group 2		Group 1		Total
Current Scheduled Payments														8,161,303.95
Current Scheduled Payments 1 Month Prior														8,591,267.37
Current Scheduled Payments 2 Month Prior														8,971,501.94
Current Scheduled Payments 3 Month Prior														9,359,994.26
Current Scheduled Payments 4 Month Prior														9,724,598.59
Current Scheduled Payments 5 Month Prior														10,097,222.63
Current Scheduled Payments 6 Month Prior														10,382,745.56
Current Scheduled Payments 7 Month Prior														10,627,011.35
Current Scheduled Payments 8 Month Prior														10,868,495.06
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 37 of 37

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