

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


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



                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-113543-28                        13-3939229
          (Commission File Number)        (I.R.S. Employer Identification No.)


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


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


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


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

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

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

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

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


     Item 8.01 Other Events.

     This current report on Form 8-K relates to the monthly distribution reported to the holders of
     Morgan Stanley ABS Capital I Inc. Mortgage Pass-Through Certificates, Series 2005-HE2, which
     was made on March 1, 2005


     Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     Exhibit No. Description

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


                                  SIGNATURES


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



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



          Date:  Aug 26, 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
              August 25, 2005.



Morgan Stanley ABS Capital I Inc. 2005-HE2

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

				External Parties						Table of Contents

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

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

										6. REO Report					16

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

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



				Underwriter(s)
				Morgan Stanley


										Total Number of Pages					36


				Dates						Contacts

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

										Address:
										1761 East St. Andrew Place, Santa Ana, CA 92705
				Distribution Date:			August 25, 2005
										Factor Information:			(800) 735-7777
				Record Date:			July 29, 2005
										Main Phone Number:			(714) 247-6000

							August 24, 2005


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






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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Certificate Payment Report
Current Period Distribution - REMIC II
					Prior												Current
	Class		Original		Principal						Total		Realized		Deferred		Principal

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


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

A-1ss	SR	$	326,085,000.00		288,158,660.79		910,661.41		11,480,479.16		12,391,140.57		0.00		0.00		276,678,181.63

A-1mz	SR	$	81,522,000.00		72,040,327.98		230,769.18		2,870,146.20		3,100,915.38		0.00		0.00		69,170,181.78
A-2ss	SR	$	366,742,000.00		317,280,172.51		1,005,425.61		15,560,532.83		16,565,958.44		0.00		0.00		301,719,639.68
A-2mz	SR	$	40,750,000.00		35,254,121.51		112,627.13		1,728,985.81		1,841,612.94		0.00		0.00		33,525,135.70
A-3a	SR	$	240,000,000.00		181,300,524.59		554,225.63		18,013,542.67		18,567,768.30		0.00		0.00		163,286,981.92
A-3b	SR	$	191,902,000.00		191,902,000.00		608,116.12		0.00		608,116.12		0.00		0.00		191,902,000.00
A-3mz	SR	$	47,990,000.00		41,467,715.26		132,477.83		2,001,541.81		2,134,019.64		0.00		0.00		39,466,173.45
M-1	SUB	$	49,257,000.00		49,256,999.99		163,724.79		0.00		163,724.79		0.00		0.00		49,256,999.99
M-2	SUB	$	44,490,000.00		44,490,000.00		149,412.25		0.00		149,412.25		0.00		0.00		44,490,000.00
M-3	SUB	$	28,601,000.00		28,601,000.00		97,036.84		0.00		97,036.84		0.00		0.00		28,601,000.00
M-4	SUB	$	26,218,000.00		26,218,000.00		92,338.34		0.00		92,338.34		0.00		0.00		26,218,000.00
M-5	SUB	$	25,423,000.00		25,423,000.00		90,633.00		0.00		90,633.00		0.00		0.00		25,423,000.00
M-6	SUB	$	22,245,000.00		22,245,000.00		80,261.20		0.00		80,261.20		0.00		0.00		22,245,000.00
B-1	SUB	$	19,067,000.00		19,067,000.00		76,511.63		0.00		76,511.63		0.00		0.00		19,067,000.00
B-2	SUB	$	15,890,000.00		15,890,000.00		65,131.34		0.00		65,131.34		0.00		0.00		15,890,000.00
B-3	SUB	$	15,890,000.00		15,890,000.00		73,341.18		0.00		73,341.18		0.00		0.00		15,890,000.00
X	NOF	$	46,874,277.00		46,873,915.16		3,569,987.21		0.00		3,569,987.21		0.00		0.00		46,873,915.16
P	NOF	$	0.00		0.00		1,017,041.07		0.00		1,017,041.07		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		1,421,358,437.79		9,029,721.76		51,655,228.48		60,684,950.24		0.00		0.00		1,369,703,209.31






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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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

	Period		Period						(with Notional)		Principal						Total	Principal

Class	Starting		Ending		Method		Cusip		Balance		Balance		Interest		Principal		Distribution	Balance

									(1)		(1)		(2)		(3)		(4)=(2)+(3)	(5)
A-1ss	07/25/05		08/24/05		A-Act/360		61744CMU7		326,085,000.00		883.691862		2.792712		35.207014		37.999726	848.484848
A-1mz	07/25/05		08/24/05		A-Act/360		61744CMV5		81,522,000.00		883.691862		2.830760		35.207014		38.037774	848.484848
A-2ss	07/25/05		08/24/05		A-Act/360		61744CMW3		366,742,000.00		865.131816		2.741507		42.429100		45.170606	822.702717
A-2mz	07/25/05		08/24/05		A-Act/360		61744CMX1		40,750,000.00		865.131816		2.763856		42.429100		45.192956	822.702717
A-3a	07/25/05		08/24/05		A-Act/360		61744CMY9		240,000,000.00		755.418852		2.309273		75.056428		77.365701	680.362425
A-3b	07/25/05		08/24/05		A-Act/360		61744CMZ6		191,902,000.00		1,000.000000		3.168889		0.000000		3.168889	1,000.000000
A-3mz	07/25/05		08/24/05		A-Act/360		61744CNA0		47,990,000.00		864.090753		2.760530		41.707477		44.468007	822.383277
M-1	07/25/05		08/24/05		A-Act/360		61744CNB8		49,257,000.00		1,000.000000		3.323889		0.000000		3.323889	1,000.000000
M-2	07/25/05		08/24/05		A-Act/360		61744CNC6		44,490,000.00		1,000.000000		3.358333		0.000000		3.358333	1,000.000000
M-3	07/25/05		08/24/05		A-Act/360		61744CND4		28,601,000.00		1,000.000000		3.392778		0.000000		3.392778	1,000.000000
M-4	07/25/05		08/24/05		A-Act/360		61744CNE2		26,218,000.00		1,000.000000		3.521944		0.000000		3.521944	1,000.000000
M-5	07/25/05		08/24/05		A-Act/360		61744CNF9		25,423,000.00		1,000.000000		3.565000		0.000000		3.565000	1,000.000000
M-6	07/25/05		08/24/05		A-Act/360		61744CNG7		22,245,000.00		1,000.000000		3.608056		0.000000		3.608056	1,000.000000
B-1	07/25/05		08/24/05		A-Act/360		61744CNH5		19,067,000.00		1,000.000000		4.012778		0.000000		4.012778	1,000.000000
B-2	07/25/05		08/24/05		A-Act/360		61744CNJ1		15,890,000.00		1,000.000000		4.098889		0.000000		4.098889	1,000.000000
B-3	07/25/05		08/24/05		A-Act/360		61744CNK8		15,890,000.00		1,000.000000		4.615556		0.000000		4.615556	1,000.000000
X	07/25/05		08/24/05		A-Act/360				46,874,277.00		999.992281		76.160902		0.000000		76.160902	999.992281
P	07/25/05		08/24/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000
R	07/25/05		08/24/05		A-Act/360				0.00		0.000000		0.000000		0.000000		0.000000	0.000000




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

Distribution to Date - REMIC II
																	Current


	Original				Unscheduled		Scheduled		Total		Total		Realized		Deferred		Principal

Class	Face Value		Interest		Principal		Principal		Principal		Distribution		Loss		Interest		Balance
	(1)		(2)		(3)		(4)		(5)=(3)+(4)		(6)=(2)+(5)		(7)		(8)		(9)=(1)-(5)-(7)+(8)
A-1ss	326,085,000.00		4,235,009.01		48,071,832.95		1,334,985.42		49,406,818.37		53,641,827.38		0.00		0.00		276,678,181.63
A-1mz	81,522,000.00		1,074,542.69		12,018,068.80		333,749.43		12,351,818.22		13,426,360.91		0.00		0.00		69,170,181.78
A-2ss	366,742,000.00		4,749,848.35		63,309,380.24		1,712,980.08		65,022,360.32		69,772,208.67		0.00		0.00		301,719,639.68
A-2mz	40,750,000.00		532,480.26		7,034,529.03		190,335.27		7,224,864.30		7,757,344.56		0.00		0.00		33,525,135.70
A-3a	240,000,000.00		2,823,781.30		74,701,750.13		2,011,267.95		76,713,018.08		79,536,799.38		0.00		0.00		163,286,981.92
A-3b	191,902,000.00		2,661,534.90		0.00		0.00		0.00		2,661,534.90		0.00		0.00		191,902,000.00
A-3mz	47,990,000.00		627,694.49		8,300,348.19		223,478.36		8,523,826.55		9,151,521.04		0.00		0.00		39,466,173.45
M-1	49,257,000.00		719,607.33		0.01		0.00		0.01		719,607.34		0.00		0.00		49,256,999.99
M-2	44,490,000.00		657,281.22		0.00		0.00		0.00		657,281.22		0.00		0.00		44,490,000.00
M-3	28,601,000.00		427,245.43		0.00		0.00		0.00		427,245.43		0.00		0.00		28,601,000.00
M-4	26,218,000.00		407,815.63		0.00		0.00		0.00		407,815.63		0.00		0.00		26,218,000.00
M-5	25,423,000.00		400,675.41		0.00		0.00		0.00		400,675.41		0.00		0.00		25,423,000.00
M-6	22,245,000.00		355,161.60		0.00		0.00		0.00		355,161.60		0.00		0.00		22,245,000.00
B-1	19,067,000.00		341,263.62		0.00		0.00		0.00		341,263.62		0.00		0.00		19,067,000.00
B-2	15,890,000.00		290,933.82		0.00		0.00		0.00		290,933.82		0.00		0.00		15,890,000.00
B-3	15,890,000.00		330,129.16		0.00		0.00		0.00		330,129.16		0.00		0.00		15,890,000.00
X	46,874,277.00		22,050,722.95		349.64		12.20		361.84		22,051,084.79		0.00		0.00		46,873,915.16
P	0.00		4,110,025.03		0.00		0.00		0.00		4,110,025.03		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		46,795,752.20		213,436,258.99		5,806,808.71		219,243,067.69		266,038,819.89		0.00		0.00		1,369,703,209.31



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


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

Class	Rate		Balance		Interest		Interest SF		Interest		Adjustment		Interest		Interest		Interest
					(1)		(2)		(3)		(4)		(5)=(1)-(2)+(3)+(4)		(6)		(7)=(5)-(6)
A-1ss	3.67000%		288,158,660.79		910,661.41		0.00		0.00		0.00		910,661.41		910,661.41		0.00
A-1mz	3.72000%		72,040,327.98		230,769.18		0.00		0.00		0.00		230,769.18		230,769.18		0.00
A-2ss	3.68000%		317,280,172.51		1,005,425.61		0.00		0.00		0.00		1,005,425.61		1,005,425.61		0.00
A-2mz	3.71000%		35,254,121.51		112,627.13		0.00		0.00		0.00		112,627.13		112,627.13		0.00
A-3a	3.55000%		181,300,524.59		554,225.63		0.00		0.00		0.00		554,225.63		554,225.63		0.00
A-3b	3.68000%		191,902,000.00		608,116.12		0.00		0.00		0.00		608,116.12		608,116.12		0.00
A-3mz	3.71000%		41,467,715.26		132,477.83		0.00		0.00		0.00		132,477.83		132,477.83		0.00
M-1	3.86000%		49,256,999.99		163,724.79		0.00		0.00		0.00		163,724.79		163,724.79		0.00
M-2	3.90000%		44,490,000.00		149,412.25		0.00		0.00		0.00		149,412.25		149,412.25		0.00
M-3	3.94000%		28,601,000.00		97,036.84		0.00		0.00		0.00		97,036.84		97,036.84		0.00
M-4	4.09000%		26,218,000.00		92,338.34		0.00		0.00		0.00		92,338.34		92,338.34		0.00
M-5	4.14000%		25,423,000.00		90,633.00		0.00		0.00		0.00		90,633.00		90,633.00		0.00
M-6	4.19000%		22,245,000.00		80,261.20		0.00		0.00		0.00		80,261.20		80,261.20		0.00
B-1	4.66000%		19,067,000.00		76,511.63		0.00		0.00		0.00		76,511.63		76,511.63		0.00
B-2	4.76000%		15,890,000.00		65,131.34		0.00		0.00		0.00		65,131.34		65,131.34		0.00
B-3	5.36000%		15,890,000.00		73,341.18		0.00		0.00		0.00		73,341.18		73,341.18		0.00
X	88.44560%		46,873,915.16		0.00		0.00		0.00		0.00		0.00		3,569,987.21		0.00
P	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		1,017,041.07		0.00
R	0.00000%		0.00		0.00		0.00		0.00		0.00		0.00		0.00		0.00


Total			1,421,358,437.79		4,442,693.48		0.00		0.00		0.00		4,442,693.48		9,029,721.76		0.00



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Collection Account Report
SUMMARY

								Group 3		Group 2		Group 1		Total
Principal Collections								20,015,084.48		17,289,518.64		14,350,625.36		51,655,228.48
Principal Withrawals								0.00		0.00		0.00		0.00
Principal Other Accounts								0.00		0.00		0.00		0.00
TOTAL NET PRINCIPAL								20,015,084.48		17,289,518.64		14,350,625.36		51,655,228.48
Interest Collections								3,010,831.38		2,531,419.12		2,564,060.17		8,106,310.66
Interest Withdrawals								-0.00		-0.00		-0.00		-0.00
Interest Other Accounts								0.00		0.00		1,017,041.07		1,017,041.07
Interest Fees								-32,298.45		-29,429.33		-24,974.05		-93,629.98
TOTAL NET INTEREST								2,978,532.92		2,501,989.79		3,556,127.19		9,029,721.75
TOTAL AVAILABLE FUNDS FOR DISTRIBUTION								22,993,617.40		19,791,508.43		17,906,752.55		60,684,950.23



PRINCIPAL - COLLECTIONS

									Group 3		Group 2		Group 1		Total
Scheduled Principal Received									401,124.41		351,789.48		356,917.65		1,109,831.54
Prepayments In Full									19,543,857.51		16,921,815.62		13,955,933.37		50,421,606.50
Curtailments									70,102.56		15,913.54		37,774.34		123,790.44
Liquidations									0.00		0.00		0.00		0.00
Insurance Principal									0.00		0.00		0.00		0.00
Repurchased Principal Amounts									0.00		0.00		0.00		0.00
Other Principal									0.00		0.00		0.00		0.00
Total Realized Loss Of Principal									-0.00		-0.00		-0.00		-0.00
Delinquent Principal									-353,635.07		-308,067.51		-318,566.52		-980,269.10
Advanced Principal									353,635.07		308,067.51		318,566.52		980,269.10
TOTAL PRINCIPAL COLLECTED									20,015,084.48		17,289,518.64		14,350,625.36		51,655,228.48


PRINCIPAL - WITHDRAWALS

SPACE INTENTIONALLY LEFT BLANK



PRINCIPAL - OTHER ACCOUNTS

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





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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

INTEREST - COLLECTIONS

								Group 3		Group 2		Group 1		Total
Scheduled Interest								3,197,493.67		2,688,432.62		2,728,840.76		8,614,767.05
Liquidation Interest								0.00		0.00		0.00		0.00
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								-42,953.00		-38,315.62		-30,770.77		-112,039.39
Compensating Interest								42,953.00		38,315.62		30,770.77		112,039.39
Delinquent Interest								-2,737,519.72		-2,272,448.39		-2,382,250.13		-7,392,218.24
Interest Advanced								2,550,857.42		2,115,434.89		2,217,469.54		6,883,761.85
TOTAL INTEREST COLLECTED								3,010,831.38		2,531,419.12		2,564,060.17		8,106,310.66


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		1,017,041.07		1,017,041.07
TOTAL INTEREST OTHER ACCOUNTS								0.00		0.00		1,017,041.07		1,017,041.07



INTEREST - FEES

								Group 3		Group 2		Group 1		Total
Current Servicing Fees								31,513.02		28,761.76		24,295.01		84,569.79
Current Trustee Fees								785.43		667.57		679.03		2,132.04
Current Custodian Fees														6,928.16
TOTAL INTEREST OTHER FEES								32,298.45		29,429.33		24,974.05		93,629.98




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Credit Enhancement Report
ACCOUNTS

SPACE INTENTIONALLY LEFT BLANK



INSURANCE

SPACE INTENTIONALLY LEFT BLANK



STRUCTURAL FEATURES

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




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Collateral Report


COLLATERAL



									Group 3		Group 2		Group 1		Total



Loan Count:


Original								3,369		2,867		3,482		9,718
Prior								3,082		2,586		3,199		8,867
Prefunding								0		0		0		0
Scheduled Paid Offs								-0		-0		-0		-0
Full Voluntary Prepayments								-92		-86		-88		-266
Repurchases								-0		-0		-0		-0
Liquidations								-0		-0		-0		-0
Current								2,990		2,500		3,111		8,601
Principal Balance:


Original								588,824,042.09		499,990,160.81		500,130,978.76		1,588,945,181.66
Prior								523,620,773.23		445,047,854.73		452,689,809.83		1,421,358,437.79
Prefunding								0.00		0.00		0.00		0.00
Scheduled Principal								-401,124.41		-351,789.48		-356,917.65		-1,109,831.54
Partial Prepayments								-70,102.56		-15,913.54		-37,774.34		-123,790.44
Full Voluntary Prepayments								-19,543,857.51		-16,921,815.62		-13,955,933.37		-50,421,606.50
Repurchases								-0.00		-0.00		-0.00		-0.00
Liquidations								-0.00		-0.00		-0.00		-0.00
Current								503,605,688.75		427,758,336.09		438,339,184.47		1,369,703,209.31





PREFUNDING

SPACE INTENTIONALLY LEFT BLANK






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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Coupon Original								7.35029%		7.28066%		7.25938%		7.29976%
Weighted Average Coupon Prior								7.33126%		7.26092%		7.24147%		7.28081%
Weighted Average Coupon Current								7.32781%		7.24903%		7.23379%		7.27320%
Weighted Average Months to Maturity Original								351		350		350		350
Weighted Average Months to Maturity Prior								347		347		347		347
Weighted Average Months to Maturity Current								346		345		346		346
Weighted Avg Remaining Amortization Term Original								351		350		350		350
Weighted Avg Remaining Amortization Term Prior								347		347		347		347
Weighted Avg Remaining Amortization Term Current								346		345		346		346
Weighted Average Seasoning Original								5.37		5.24		5.32		5.31
Weighted Average Seasoning Prior								8.37		8.24		8.32		8.31
Weighted Average Seasoning Current								9.37		9.24		9.32		9.31









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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

ARM CHARACTERISTICS

								Group 3		Group 2		Group 1		Total
Weighted Average Margin Original								6.14265%		5.69932%		6.10156%		5.99015%
Weighted Average Margin Prior								6.14197%		5.69999%		6.09952%		5.99011%
Weighted Average Margin Current								6.15387%		5.69183%		6.10082%		5.99291%
Weighted Average Max Rate Original								13.52419%		13.80343%		13.45496%		13.58859%
Weighted Average Max Rate Prior								13.49780%		13.78164%		13.43391%		13.56485%
Weighted Average Max Rate Current								13.49380%		13.78079%		13.42414%		13.55907%
Weighted Average Min Rate Original								7.28857%		7.30824%		7.23762%		7.27777%
Weighted Average Min Rate Prior								7.27199%		7.29046%		7.22158%		7.26089%
Weighted Average Min Rate Current								7.27130%		7.28412%		7.21433%		7.25600%
Weighted Average Cap Up Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Up Prior								1.12779%		1.25553%		1.11019%		1.16169%
Weighted Average Cap Up Current								1.12432%		1.25634%		1.10836%		1.15978%
Weighted Average Cap Down Original								1.13507%		1.26202%		1.11232%		1.16725%
Weighted Average Cap Down Prior								1.12779%		1.25553%		1.11019%		1.16169%
Weighted Average Cap Down Current								1.12432%		1.25634%		1.10836%		1.15978%




SERVICING FEES & ADVANCES

									Group 3		Group 2		Group 1		Total




Current Servicing Fees								31,513.02		28,761.76		24,295.01		84,569.79
Delinquent Servicing Fees								186,662.30		156,656.64		164,305.52		507,624.46
TOTAL SERVICING FEES								218,175.32		185,418.41		188,600.55		592,194.28


Compensating Interest								-42,953.00		-38,315.62		-30,770.77		-112,039.39
Delinquent Servicing Fees								-186,662.30		-156,656.64		-164,305.52		-507,624.46
COLLECTED SERVICING FEES								-11,439.97		-9,553.86		-6,475.74		-27,469.57


Aggregate Advances with respect to this Distribution								2,904,492.49		2,423,502.39		2,536,036.06		7,864,030.95





ADDITIONAL COLLATERAL INFORMATION
								Group 3		Group 2		Group 1		Total
Net Prepayment Interest Shortfall								0.00		0.00		0.00		0.00
Libor For Current Period														3.4600%




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Delinquency Report

	TOTAL
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				26,166,484.54		7,995,044.66		3,252,601.13		37,414,130.33
			% Balance				1.91%		0.58%		0.24%		2.73%
			# Loans				170		54		19		243
			% # Loans				1.98%		0.63%		0.22%		2.83%
	FORECLOSURE		Balance		0.00		406,496.85		3,625,082.35		10,707,098.05		14,738,677.25
			% Balance		0.00%		0.03%		0.26%		0.78%		1.08%
			# Loans		0		2		23		74		99
			% # Loans		0.00%		0.02%		0.27%		0.86%		1.15%
	BANKRUPTCY		Balance		3,066,473.44		265,043.53		123,190.90		1,630,406.95		5,085,114.82
			% Balance		0.22%		0.02%		0.01%		0.12%		0.37%
			# Loans		25		3		1		11		40
			% # Loans		0.29%		0.03%		0.01%		0.13%		0.47%
	REO		Balance		0.00		0.00		0.00		604,181.63		604,181.63
			% Balance		0.00%		0.00%		0.00%		0.04%		0.04%
			# Loans		0		0		0		4		4
			% # Loans		0.00%		0.00%		0.00%		0.05%		0.05%
	TOTAL		Balance		3,066,473.44		26,838,024.92		11,743,317.91		16,194,287.76		57,842,104.03
			% Balance		0.22%		1.96%		0.86%		1.18%		4.22%
			# Loans		25		175		78		108		386
			% # Loans		0.29%		2.03%		0.91%		1.26%		4.49%









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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution


	GROUP 1
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				10,021,637.34		3,422,601.91		1,390,952.73		14,835,191.98
			% Balance				2.29%		0.78%		0.32%		3.38%
			# Loans				74		25		9		108
			% # Loans				2.38%		0.80%		0.29%		3.47%
	FORECLOSURE		Balance		0.00		406,496.85		770,706.73		3,563,672.19		4,740,875.77
			% Balance		0.00%		0.09%		0.18%		0.81%		1.08%
			# Loans		0		2		7		29		38
			% # Loans		0.00%		0.06%		0.23%		0.93%		1.22%
	BANKRUPTCY		Balance		1,496,040.67		212,599.22		123,190.90		631,224.43		2,463,055.22
			% Balance		0.34%		0.05%		0.03%		0.14%		0.56%
			# Loans		14		2		1		4		21
			% # Loans		0.45%		0.06%		0.03%		0.13%		0.68%
	REO		Balance		0.00		0.00		0.00		0.00		0.00
			% Balance		0.00%		0.00%		0.00%		0.00%		0.00%
			# Loans		0		0		0		0		0
			% # Loans		0.00%		0.00%		0.00%		0.00%		0.00%
	TOTAL		Balance		1,496,040.67		10,640,733.41		4,316,499.54		5,585,849.35		22,039,122.97
			% Balance		0.34%		2.43%		0.98%		1.27%		5.03%
			# Loans		14		78		33		42		167
			% # Loans		0.45%		2.51%		1.06%		1.35%		5.37%










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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

	GROUP 2
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				7,041,941.30		2,739,744.16		1,249,920.03		11,031,605.49
			% Balance				1.65%		0.64%		0.29%		2.58%
			# Loans				40		17		7		64
			% # Loans				1.60%		0.68%		0.28%		2.56%
	FORECLOSURE		Balance		0.00		0.00		1,432,353.54		2,207,835.65		3,640,189.19
			% Balance		0.00%		0.00%		0.33%		0.52%		0.85%
			# Loans		0		0		9		14		23
			% # Loans		0.00%		0.00%		0.36%		0.56%		0.92%
	BANKRUPTCY		Balance		1,022,628.44		0.00		0.00		395,684.56		1,418,313.00
			% Balance		0.24%		0.00%		0.00%		0.09%		0.33%
			# Loans		5		0		0		3		8
			% # Loans		0.20%		0.00%		0.00%		0.12%		0.32%
	REO		Balance		0.00		0.00		0.00		350,769.58		350,769.58
			% Balance		0.00%		0.00%		0.00%		0.08%		0.08%
			# Loans		0		0		0		2		2
			% # Loans		0.00%		0.00%		0.00%		0.08%		0.08%
	TOTAL		Balance		1,022,628.44		7,041,941.30		4,172,097.70		4,204,209.82		16,440,877.26
			% Balance		0.24%		1.65%		0.98%		0.98%		3.84%
			# Loans		5		40		26		26		97
			% # Loans		0.20%		1.60%		1.04%		1.04%		3.88%










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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

	GROUP 3
					< 1 PAYMENT		1 PAYMENT		2 PAYMENTS		3+ PAYMENTS		TOTAL
	DELINQUENT		Balance				9,102,905.90		1,832,698.59		611,728.37		11,547,332.86
			% Balance				1.81%		0.36%		0.12%		2.29%
			# Loans				56		12		3		71
			% # Loans				1.87%		0.40%		0.10%		2.37%
	FORECLOSURE		Balance		0.00		0.00		1,422,022.08		4,935,590.21		6,357,612.29
			% Balance		0.00%		0.00%		0.28%		0.98%		1.26%
			# Loans		0		0		7		31		38
			% # Loans		0.00%		0.00%		0.23%		1.04%		1.27%
	BANKRUPTCY		Balance		547,804.33		52,444.31		0.00		603,497.96		1,203,746.60
			% Balance		0.11%		0.01%		0.00%		0.12%		0.24%
			# Loans		6		1		0		4		11
			% # Loans		0.20%		0.03%		0.00%		0.13%		0.37%
	REO		Balance		0.00		0.00		0.00		253,412.05		253,412.05
			% Balance		0.00%		0.00%		0.00%		0.05%		0.05%
			# Loans		0		0		0		2		2
			% # Loans		0.00%		0.00%		0.00%		0.07%		0.07%
	TOTAL		Balance		547,804.33		9,155,350.21		3,254,720.67		#######		19,362,103.80
			% Balance		0.11%		1.82%		0.65%		1.27%		3.84%
			# Loans		6		57		19		40		122
			% # Loans		0.20%		1.91%		0.64%		1.34%		4.08%









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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
REO Report
Loan Number			Original		Stated				Current		State &

														First
&			Principal		Principal		Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance		Date		Rate		Origination		Term		Date
408095243 2
			113,600.00		112,993.31		01-Dec-2004		9.275%		MI - 80.00%		360		01-Nov-2004

409282501 2			240,000.00		237,776.27		01-Feb-2005		6.500%		MI - 80.00%		360		01-Nov-2004
409090820 3			80,100.00		79,592.40		01-Feb-2005		8.699%		GA - 90.00%		360		01-Nov-2004
409238109 3			175,000.00		173,819.65		01-Jan-2005		8.125%		GA - 100.00%		360		01-Nov-2004


TOTAL			608,700.00		604,181.63


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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Foreclosure Report
Loan Number			Original		Stated				Current		State &

														First
&			Principal		Principal		Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance		Date		Rate		Origination		Term		Date
1784467 1
			81,950.00		81,508.57		01-Apr-2005		8.700%		MI - 55.00%		360		01-Dec-2004

1824614 1			164,000.00		164,000.00		01-Feb-2005		7.400%		OR - 80.00%		360		01-Nov-2004
1824669 1			41,000.00		40,549.07		01-Jan-2005		11.700%		OR - 20.00%		240		01-Nov-2004
1869230 1			186,300.02		186,300.02		01-Feb-2005		7.900%		MN - 90.00%		360		01-Dec-2004
1906972 1			130,000.00		129,185.20		01-Apr-2005		7.950%		GA - 63.41%		360		01-Dec-2004
1922971 1			304,000.00		304,000.00		01-Jan-2005		6.950%		TX - 80.00%		360		01-Dec-2004
11071846 1			63,200.00		62,731.94		01-Mar-2005		7.100%		FL - 80.00%		360		01-Dec-2004
41062517 1			124,100.00		123,470.04		01-Mar-2005		8.990%		IL - 85.00%		360		01-Dec-2004
81051881 1			120,250.00		119,699.37		01-Mar-2005		9.490%		VA - 65.00%		360		01-Dec-2004
121035728 1			54,000.00		53,725.85		01-Mar-2005		8.990%		MN - 51.43%		360		01-Dec-2004
141043046 1			125,000.00		124,333.52		01-Mar-2005		8.150%		NY - 78.13%		360		01-Jan-2005
271016636 1			91,000.00		90,370.63		01-Apr-2005		7.450%		MN - 70.00%		360		01-Dec-2004
321021030 1			171,000.00		169,707.38		01-Mar-2005		7.550%		CO - 95.00%		360		01-Nov-2004
381017301 1			159,800.00		158,581.50		01-Mar-2005		6.950%		MA - 85.00%		360		01-Dec-2004
409024311 1			165,000.00		164,319.25		01-Jan-2005		9.990%		OK - 75.00%		360		01-Dec-2004
409088880 1			91,800.00		91,298.76		01-Apr-2005		10.200%		IL - 90.00%		360		01-Nov-2004
409306542 1			135,120.00		134,435.44		01-Jan-2005		9.000%		IL - 80.00%		360		01-Dec-2004
521020018 1			121,600.00		120,681.69		01-Apr-2005		7.000%		MO - 95.00%		360		01-Dec-2004
551003609 1			103,500.00		102,936.87		01-Apr-2005		8.650%		OK - 90.00%		360		01-Dec-2004
651006267 1			52,000.00		51,725.60		01-Feb-2005		8.800%		SC - 80.00%		360		01-Dec-2004
671001535 1			170,000.00		168,704.52		01-Mar-2005		7.350%		CA - 73.91%		360		01-Dec-2004
731007520 1			306,000.00		304,098.25		01-May-2005		7.990%		GA - 85.00%		360		01-Dec-2004
741008269 1			70,200.00		69,654.27		01-Mar-2005		6.850%		OH - 90.00%		360		01-Dec-2004
841001310 1			63,000.00		62,674.20		01-Mar-2005		8.900%		MI - 70.00%		360		01-Dec-2004
841001404 1			127,500.00		126,617.85		01-Mar-2005		7.500%		MI - 82.79%		360		01-Dec-2004
2010040924910 1			89,352.00		88,591.08		06-Mar-2005		7.015%		NC - 79.78%		360		01-Nov-2004
2010040925830 1			103,959.20		103,028.87		28-Feb-2005		7.190%		NC - 79.97%		360		01-Oct-2004
2010040928730 1			87,280.00		86,309.46		29-Mar-2005		6.090%		TN - 79.71%		360		01-Oct-2004
2010041035260 1			64,000.00		63,655.48		18-Jan-2005		9.240%		TN - 71.91%		360		01-Nov-2004
2020041069410 1			96,000.00		95,166.74		22-Mar-2005		6.840%		OH - 80.00%		360		01-Nov-2004
2080040917890 1			157,250.00		156,047.23		01-Mar-2005		7.490%		MI - 85.00%		360		01-Nov-2004
2080041023890 1			58,000.00		57,496.53		27-Mar-2005		6.840%		MI - 78.38%		360		01-Nov-2004
2100040952890 1			156,000.00		154,725.01		01-Apr-2005		6.590%		CO - 80.00%		360		01-Dec-2004
2100041055320 1			276,250.00		274,064.79		01-Jan-2005		6.760%		CO - 84.48%		360		01-Dec-2004
2260041077300 1			104,000.00		103,409.45		01-Feb-2005		8.440%		OR - 80.00%		360		01-Dec-2004
2280041087850 1			103,000.00		102,398.60		27-May-2005		8.840%		IA - 79.84%		360		01-Nov-2004
2330040979390 1			127,500.00		126,732.54		15-Mar-2005		8.690%		TN - 85.00%		360		01-Nov-2004
2360041038780 1			124,800.00		123,940.20		01-Mar-2005		7.470%		FL - 80.00%		360		01-Dec-2004
1833055 2			33,600.00		33,115.54		01-Apr-2005		10.250%		MT - 20.00%		240		01-Nov-2004
1853431 2			30,800.00		30,476.22		01-Mar-2005		11.200%		CO - 20.00%		240		01-Dec-2004
1854247 2			210,000.00		209,060.06		01-Feb-2005		9.600%		CA - 70.00%		360		01-Dec-2004
1866578 2			165,600.00		165,600.00		01-Jan-2005		5.850%		CA - 80.00%		360		01-Nov-2004
1888789 2			299,625.00		297,250.34		01-Mar-2005		6.750%		IL - 85.00%		360		01-Dec-2004
1908451 2			272,000.00		270,744.06		01-Apr-2005		9.450%		OH - 85.00%		360		01-Dec-2004
161037575 2			248,250.00		246,263.51		01-Apr-2005		6.700%		MA - 75.00%		360		01-Dec-2004
211024589 2			171,000.00		170,122.48		01-Apr-2005		8.340%		NC - 90.00%		360		01-Jan-2005
231055996 2			180,000.00		178,679.78		01-Jan-2005		7.150%		PA - 80.00%		360		01-Dec-2004
321021417 2			264,000.00		262,170.49		01-Mar-2005		7.440%		CO - 80.00%		360		01-Dec-2004
401267574 2			140,000.00		137,737.40		01-Apr-2005		6.125%		CT - 80.00%		360		01-May-2004


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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

Loan Number			Original		Stated				Current		State &

														First
&			Principal		Principal		Paid to		Note		LTV at		Original		Payment

Loan Group			Balance		Balance		Date		Rate		Origination		Term		Date
407169343 2
			262,400.00		262,400.00		01-Dec-2004		7.500%		GA - 80.00%		360		01-Nov-2004

407305627 2			125,896.00		124,687.04		01-Mar-2005		6.825%		SC - 80.00%		360		01-Oct-2004
408198628 2			82,875.00		82,329.50		01-Mar-2005		7.750%		CA - 85.00%		360		01-Dec-2004
408199019 2			100,000.00		99,115.46		01-Mar-2005		7.250%		WA - 80.00%		360		01-Oct-2004
409102564 2			123,250.00		122,354.36		01-Apr-2005		7.750%		RI - 79.52%		360		01-Nov-2004
409157478 2			160,080.00		158,916.69		01-Mar-2005		7.750%		DE - 80.00%		360		01-Nov-2004
409272433 2			116,000.00		115,073.68		01-Apr-2005		7.270%		AZ - 80.00%		360		01-Nov-2004
410018004 2			233,750.00		232,263.63		01-Apr-2005		7.875%		CA - 85.00%		360		01-Dec-2004
410048914 2			85,000.00		84,524.06		01-Mar-2005		8.509%		MI - 83.33%		360		01-Dec-2004
410142788 2			99,200.00		98,469.38		01-Feb-2005		7.129%		IN - 80.00%		360		01-Dec-2004
410186824 2			105,750.00		104,678.88		01-Apr-2005		7.500%		OH - 90.00%		360		01-Dec-2004
651005867 2			155,000.00		154,156.63		01-Mar-2005		8.650%		RI - 67.39%		360		01-Dec-2004
1809138 3			361,250.00		359,511.52		01-Dec-2004		9.250%		NY - 85.00%		360		01-Dec-2004
1896814 3			420,000.00		416,978.87		01-Mar-2005		7.250%		CA - 84.00%		360		01-Dec-2004
161036275 3			130,400.00		129,273.71		01-Mar-2005		6.300%		NH - 80.00%		360		01-Dec-2004
271017680 3			99,655.00		99,005.38		01-Mar-2005		7.750%		MN - 95.00%		360		01-Dec-2004
403162936 3			360,000.00		359,792.33		01-Apr-2005		6.875%		CA - 80.00%		360		01-May-2004
405040770 3			105,000.00		102,764.56		01-Feb-2005		6.500%		FL - 76.09%		360		01-Sep-2004
408039613 3			127,500.00		126,362.91		01-Apr-2005		6.699%		WA - 85.00%		360		01-Nov-2004
408117950 3			218,000.00		216,233.49		01-Apr-2005		7.200%		CA - 80.00%		360		01-Nov-2004
409091142 3			86,700.00		86,129.71		01-Mar-2005		8.250%		TN - 85.00%		360		01-Nov-2004
409202428 3			82,400.00		81,857.94		01-Mar-2005		8.250%		TX - 80.00%		360		01-Nov-2004
409202498 3			82,400.00		81,913.83		01-Apr-2005		8.250%		TX - 80.00%		360		01-Nov-2004
661002666 3			78,600.00		77,946.43		01-Mar-2005		6.500%		CA - 71.45%		360		01-Dec-2004
741008097 3			72,000.00		71,451.00		01-Mar-2005		6.950%		OH - 75.00%		360		01-Dec-2004
831027453 3			50,000.00		48,396.23		01-Mar-2005		9.350%		CA - 6.67%		180		01-Sep-2004
841001425 3			109,250.00		108,625.25		01-Apr-2005		7.800%		MI - 95.00%		360		01-Jan-2005
2010041040700 3			104,000.00		102,497.82		26-Feb-2005		6.990%		NC - 84.90%		360		01-Nov-2004
2010041045940 3			272,700.00		270,530.87		29-Mar-2005		7.290%		VA - 90.00%		360		01-Nov-2004
2020041071640 3			92,200.00		91,731.92		01-Mar-2005		8.990%		OH - 74.35%		360		01-Dec-2004
2030040924510 3			78,000.00		77,404.54		06-Dec-2004		7.500%		DE - 55.71%		360		01-Nov-2004
2030040927170 3			71,400.00		70,864.50		09-Feb-2005		7.590%		DE - 85.00%		360		01-Nov-2004
2030041032780 3			117,000.00		116,189.34		20-Feb-2005		7.990%		PA - 90.00%		360		01-Nov-2004
2030041034310 3			368,000.00		365,596.30		08-Apr-2005		7.740%		DE - 80.00%		360		01-Dec-2004
2050040996290 3			98,100.00		97,327.23		03-Mar-2005		7.340%		IN - 90.00%		360		01-Nov-2004
2050041003300 3			72,165.00		71,739.13		21-Mar-2005		8.790%		IN - 84.90%		360		01-Nov-2004
2050041004600 3			90,000.00		89,440.58		01-Mar-2005		7.990%		OH - 100.00%		360		01-Dec-2004
2050041005090 3			109,020.00		108,396.36		19-Feb-2005		8.940%		OH - 79.00%		360		01-Nov-2004
2050041012150 3			60,550.00		60,082.29		28-Dec-2004		7.440%		IN - 70.00%		360		01-Nov-2004
2060041086130 3			299,000.00		296,844.36		22-Feb-2005		7.790%		FL - 74.75%		360		01-Nov-2004
2060041086880 3			298,400.00		295,979.68		14-Mar-2005		7.190%		FL - 80.00%		360		01-Nov-2004
2070040946040 3			170,000.00		168,581.16		01-Dec-2004		7.440%		WI - 85.00%		360		01-Nov-2004
2070041052930 3			164,610.00		163,497.97		01-Apr-2005		7.590%		IL - 89.46%		360		01-Dec-2004
2070041054210 3			468,000.00		465,090.30		01-Jan-2005		7.990%		IL - 80.00%		360		01-Dec-2004
2090040904510 3			225,250.00		223,689.31		18-Mar-2005		7.990%		NY - 85.00%		360		01-Nov-2004
2090040904690 3			320,000.00		317,841.73		13-Feb-2005		8.125%		MA - 80.00%		360		01-Nov-2004
2090041006190 3			207,920.00		206,298.16		18-Mar-2005		7.390%		MA - 79.97%		360		01-Nov-2004
2250040905520 3			84,600.00		84,250.43		05-Nov-2004		9.990%		FL - 90.00%		360		01-Nov-2004
2280040980520 3			117,000.00		113,222.86		01-Feb-2005		7.040%		SD - 87.97%		180		01-Nov-2004
2280040980980 3			135,200.00		134,272.29		04-Feb-2005		8.040%		SD - 80.00%		360		01-Nov-2004


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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution


TOTAL			14,839,057.22		14,738,677.25


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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Prepayment Report

VOLUNTARY PREPAYMENTS


									Group 3		Group 2		Group 1		Total




Current


Number of Paid in Full Loans								92		86		88		266
Number of Repurchased Loans								0		0		0		0
Total Number of Loans Prepaid in Full								92		86		88		266
Curtailments Amount								70,102.56		15,913.54		37,774.34		123,790.44
Paid in Full Balance								19,543,857.51		16,921,815.62		13,955,933.37		50,421,606.50
Repurchased Loans Balance								0.00		0.00		0.00		0.00
Total Prepayment Amount								19,613,960.07		16,937,729.16		13,993,707.71		50,545,396.94

Cumulative


Number of Paid in Full Loans								377		366		369		1,112
Number of Repurchased Loans								2		1		0		3
Total Number of Loans Prepaid in Full								379		367		369		1,115
Paid in Full Balance								82,199,468.93		70,199,791.52		59,529,438.80		211,928,699.25
Repurchased Loans Balance								502,879.82		65,328.97		0.00		568,208.79
Curtailments Amount								409,495.88		118,415.91		224,466.56		752,378.35
Total Prepayment Amount								83,111,844.63		70,383,536.40		59,753,905.36		213,249,286.39










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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

VOLUNTARY PREPAYMENTS RATES


									Group 3		Group 2		Group 1		Total



SMM								3.75%		3.81%		3.09%		3.56%
3 Months Avg SMM								3.60%		3.49%		2.73%		3.29%
12 Months Avg SMM								3.01%		3.00%		2.53%		2.85%
Avg SMM Since Cut-off								3.01%		3.00%		2.53%		2.85%


CPR								36.78%		37.25%		31.42%		35.26%
3 Months Avg CPR								35.62%		34.68%		28.28%		33.07%
12 Months Avg CPR								30.66%		30.59%		26.45%		29.33%
Avg CPR Since Cut-off								30.66%		30.59%		26.45%		29.33%


PSA								1,963.21%		2,015.90%		1,686.10%		1,893.80%
3 Months Avg PSA Approximation								2,128.55%		2,104.89%		1,699.58%		1,989.58%
12 Months Avg PSA Approximation								2,080.63%		2,112.89%		1,806.26%		2,005.26%
Avg PSA Since Cut-off Approximation								2,080.64%		2,112.89%		1,806.26%		2,005.27%










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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution






PREPAYMENT CALCULATION METHODOLOGY

Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases + Liquidations )/(Beg Principal Balance - Sched Principal) Conditional Prepayment Rate (CPR): 1-((1-SMM)^12) PSA Standard Prepayment Model: CPR/(0.002min(30,WAS)) Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn)(1-SMMn+1)...(1-SMMm)]^(1/months in period n,m) Conditional Prepayment Rate (CPR): 1-((1-SMM)^12) Average PSA Approximation over period between the nth month and mth month: AvgCPRn,m/(0.002*Avg WASn,m)) Average WASn,m: (min(30,WASn)+min(30,WASn+1)+...+min(30,WASm)/(number of months in the period n,m) Weighted Average Seasoning (WAS) Dates correspond to distribution dates. Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments, liquidations, and repurchases.













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

Mortgage Pass-Through Certificates

2005-HE2

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

1537654 1			35,632.00		35,250.54			08-Aug-2005		10.500%		AZ - 20.00%		Paid Off - 240		01-Dec-2004


1559871 1			290,000.00		287,312.96			18-Jul-2005		6.499%		CA - 79.45%		Paid Off - 360		01-Oct-2004

1776151 1			46,000.00		45,516.61			15-Aug-2005		12.050%		FL - 20.00%		Paid Off - 240		01-Oct-2004

1791895 1			45,200.00		44,237.88			19-Jul-2005		10.600%		FL - 20.00%		Paid Off - 180		01-Nov-2004

1826811 3			82,400.00		82,084.81			26-Jul-2005		10.350%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1827961 3			81,000.00		80,714.91			01-Aug-2005		11.450%		DC - 20.00%		Paid Off - 360		01-Nov-2004

1829508 3			76,741.00		76,474.32			01-Aug-2005		10.800%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1836634 1			71,900.00		71,650.12			11-Aug-2005		10.800%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1841507 1			62,400.00		62,129.22			27-Jul-2005		9.750%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1854832 2			44,000.00		43,834.19			28-Jul-2005		11.100%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1857148 1			208,000.00		206,727.06			29-Jul-2005		8.600%		AZ - 100.00%		Paid Off - 360		01-Dec-2004

1857836 2			283,100.00		281,790.26			10-Aug-2005		8.850%		FL - 95.00%		Paid Off - 360		01-Dec-2004

1860003 1			292,000.00		291,999.34			03-Aug-2005		6.350%		CA - 80.00%		Paid Off - 360		01-Nov-2004

1860248 2			160,000.00		158,803.39			12-Aug-2005		7.050%		NJ - 80.00%		Paid Off - 360		01-Nov-2004

1861617 3			95,000.00		94,662.75			04-Aug-2005		10.700%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1863037 2			30,000.00		29,620.54			05-Aug-2005		9.750%		AZ - 20.00%		Paid Off - 240		01-Nov-2004

1865400 1			48,000.00		47,562.98			19-Jul-2005		12.300%		NV - 20.00%		Paid Off - 240		01-Nov-2004

1866476 1			276,250.00		276,186.95			21-Jul-2005		6.625%		CA - 85.00%		Paid Off - 300		01-Dec-2004

1866746 1			208,000.00		206,061.80			21-Jul-2005		5.250%		NJ - 65.00%		Paid Off - 360		01-Dec-2004

1867158 2			51,200.00		51,010.30			26-Jul-2005		10.500%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1869465 2			299,250.00		296,882.68			28-Jul-2005		6.990%		CA - 95.00%		Paid Off - 360		01-Nov-2004

1870962 3			67,000.00		66,067.10			21-Jul-2005		9.500%		CA - 13.54%		Paid Off - 360		01-Nov-2004

1872207 1			290,000.00		288,000.48			03-Aug-2005		6.850%		NJ - 57.77%		Paid Off - 360		01-Dec-2004

1873031 3			412,000.00		411,987.92			19-Jul-2005		5.700%		CA - 80.00%		Paid Off - 360		01-Nov-2004

1874110 1			236,000.00		236,000.00			04-Aug-2005		6.200%		CA - 80.00%		Paid Off - 360		01-Nov-2004

1874629 2			180,000.00		178,470.98			26-Jul-2005		5.750%		NV - 78.95%		Paid Off - 360		01-Dec-2004

1874850 1			276,250.00		276,212.21			04-Aug-2005		5.800%		CA - 85.00%		Paid Off - 360		01-Nov-2004

1880710 3			97,000.00		95,927.55			10-Aug-2005		9.850%		MI - 20.00%		Paid Off - 240		01-Dec-2004

1881782 3			577,500.00		572,878.26			01-Aug-2005		6.700%		CA - 70.00%		Paid Off - 360		01-Nov-2004

1885550 1			60,000.00		58,684.70			15-Aug-2005		8.900%		GA - 30.00%		Paid Off - 180		01-Dec-2004

1890475 1			346,750.00		345,278.28			27-Jul-2005		7.350%		CA - 95.00%		Paid Off - 360		01-Dec-2004

1892844 3			480,000.00		477,615.18			04-Aug-2005		8.500%		CA - 60.00%		Paid Off - 360		01-Dec-2004

1893638 2			245,000.00		243,966.78			04-Aug-2005		9.300%		CA - 69.01%		Paid Off - 360		01-Dec-2004

1896170 2			137,000.00		135,963.88			15-Aug-2005		6.600%		WI - 64.02%		Paid Off - 360		01-Dec-2004

1896275 2			260,000.00		259,635.94			28-Jul-2005		5.475%		CA - 80.00%		Paid Off - 360		01-Nov-2004

1896283 1			65,000.00		64,702.66			28-Jul-2005		10.050%		CA - 20.00%		Paid Off - 360		01-Nov-2004

1898449 2			127,500.00		127,500.00			08-Aug-2005		6.750%		MN - 85.00%		Paid Off - 300		01-Dec-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

1899913 2			176,000.00		176,000.00			19-Jul-2005		6.990%		CO - 79.28%		Paid Off - 360		01-Dec-2004


1906981 2			75,600.00		75,178.31			11-Aug-2005		7.925%		MI - 84.94%		Paid Off - 360		01-Dec-2004

1907411 2			102,400.00		101,896.37			11-Aug-2005		8.550%		TX - 80.00%		Paid Off - 360		01-Dec-2004

1907415 2			245,000.00		243,407.41			18-Jul-2005		7.150%		NY - 75.38%		Paid Off - 360		01-Dec-2004

1907781 2			267,900.00		266,071.20			04-Aug-2005		6.900%		CA - 95.00%		Paid Off - 360		01-Dec-2004

1909354 2			383,400.00		381,118.72			04-Aug-2005		7.600%		CA - 90.00%		Paid Off - 360		01-Dec-2004

1911306 3			423,000.00		422,999.97			27-Jul-2005		8.050%		CA - 90.00%		Paid Off - 360		01-Dec-2004

1914604 1			262,500.00		260,632.45			22-Jul-2005		6.750%		CA - 75.00%		Paid Off - 360		01-Dec-2004

1918754 1			141,950.00		141,018.25			22-Jul-2005		7.100%		FL - 85.00%		Paid Off - 360		01-Dec-2004

1922782 1			176,500.00		174,848.61			26-Jul-2005		5.550%		CA - 73.54%		Paid Off - 360		01-Dec-2004

1923686 3			437,000.00		437,000.00			02-Aug-2005		6.900%		MA - 82.77%		Paid Off - 360		01-Dec-2004

11071327 2			270,000.00		268,139.54			19-Jul-2005		6.850%		CA - 58.06%		Paid Off - 360		01-Dec-2004

11071463 3			146,000.00		145,405.25			07-Jul-2005		10.050%		NV - 22.74%		Paid Off - 360		01-Nov-2004

11071489 2			189,520.00		188,251.57			27-Jul-2005		7.000%		VA - 80.00%		Paid Off - 360		01-Dec-2004

11071553 2			240,000.00		238,387.19			08-Jul-2005		7.250%		CA - 80.00%		Paid Off - 360		01-Dec-2004

11071741 2			152,000.00		151,181.33			13-Jul-2005		8.100%		MI - 83.52%		Paid Off - 360		01-Dec-2004

11071762 3			531,500.00		531,500.00			15-Jul-2005		7.400%		CA - 74.96%		Paid Off - 360		01-Dec-2004

21060395 1			346,000.00		343,210.36			01-Jul-2005		7.150%		CA - 79.54%		Paid Off - 360		01-Dec-2004

21060414 3			119,000.00		118,180.01			28-Jul-2005		6.850%		CA - 63.64%		Paid Off - 360		01-Dec-2004

21060452 1			110,000.00		109,263.22			01-Jul-2005		7.350%		CA - 75.34%		Paid Off - 360		01-Dec-2004

31029683 2			299,700.00		297,647.37			05-Jul-2005		7.500%		CA - 90.00%		Paid Off - 360		01-Nov-2004

31029942 2			200,000.00		198,737.58			21-Jul-2005		7.300%		CA - 80.00%		Paid Off - 360		01-Dec-2004

31030205 3			241,500.00		240,156.92			21-Jul-2005		7.250%		CA - 70.00%		Paid Off - 360		01-Jan-2005

41062590 2			156,000.00		155,075.70			21-Jul-2005		7.950%		IL - 65.00%		Paid Off - 360		01-Dec-2004

41062603 3			355,400.00		352,998.12			19-Jul-2005		6.950%		IL - 64.62%		Paid Off - 360		01-Dec-2004

41062620 3			246,500.00		245,388.75			27-Jul-2005		9.000%		IL - 85.00%		Paid Off - 360		01-Dec-2004

41062712 3			140,250.00		139,381.97			21-Jul-2005		7.400%		IL - 85.00%		Paid Off - 360		01-Dec-2004

61054025 3			50,000.00		40,219.76			28-Jul-2005		6.800%		OH - 36.79%		Paid Off - 360		01-Oct-2004

61055197 1			132,000.00		131,116.52			26-Jul-2005		7.000%		OH - 80.00%		Paid Off - 360		01-Dec-2004

71062798 2			159,200.00		158,165.15			29-Jul-2005		7.150%		FL - 80.00%		Paid Off - 360		01-Dec-2004

71062902 3			110,400.00		109,792.14			29-Jul-2005		7.990%		FL - 80.00%		Paid Off - 360		01-Dec-2004

81051600 2			182,750.00		181,785.33			13-Jul-2005		8.200%		VA - 81.58%		Paid Off - 360		01-Dec-2004

81051610 3			220,000.00		218,971.76			21-Jul-2005		8.800%		VA - 73.33%		Paid Off - 360		01-Dec-2004

81051649 3			234,000.00		232,764.76			14-Jul-2005		8.200%		MD - 90.00%		Paid Off - 360		01-Dec-2004

81051675 1			115,235.00		114,701.86			12-Jul-2005		8.850%		VA - 95.00%		Paid Off - 360		01-Dec-2004

81051753 2			262,020.00		260,548.65			18-Jul-2005		7.200%		VA - 43.67%		Paid Off - 360		01-Jan-2005

81051862 1			66,400.00		66,034.40			06-Jul-2005		7.990%		VA - 40.00%		Paid Off - 360		01-Dec-2004

101044085 1			93,480.00		92,922.97			01-Jul-2005		8.200%		TX - 79.90%		Paid Off - 360		01-Nov-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

121035844 2			221,825.00		220,505.15			27-Jul-2005		7.600%		MN - 95.00%		Paid Off - 360		01-Dec-2004


131029115 3			102,505.00		101,988.17			08-Jul-2005		8.450%		OH - 95.00%		Paid Off - 360		01-Dec-2004

141041999 3			199,500.00		198,155.31			14-Jul-2005		8.500%		NY - 70.00%		Paid Off - 360		01-Dec-2004

141042628 1			144,000.00		143,339.21			12-Jul-2005		8.890%		MA - 75.00%		Paid Off - 360		01-Dec-2004

141042646 1			125,000.00		124,171.49			08-Jul-2005		7.050%		NY - 39.06%		Paid Off - 360		01-Dec-2004

161036697 1			319,500.00		317,596.09			27-Jul-2005		8.200%		MA - 90.00%		Paid Off - 360		01-Nov-2004

161036963 3			108,000.00		106,965.40			06-Jul-2005		5.850%		MA - 80.00%		Paid Off - 360		01-Nov-2004

161037280 2			222,300.00		220,610.65			12-Jul-2005		6.340%		MA - 90.00%		Paid Off - 360		01-Dec-2004

161037416 3			360,000.00		357,421.85			07-Jul-2005		6.650%		MA - 79.12%		Paid Off - 360		01-Dec-2004

171022346 2			137,992.00		137,992.00			20-Jul-2005		7.250%		NV - 79.88%		Paid Off - 360		01-Dec-2004

171022394 2			185,500.00		184,181.74			06-Jul-2005		7.000%		NV - 70.00%		Paid Off - 360		01-Dec-2004

171022705 3			204,000.00		202,924.17			22-Jul-2005		8.400%		AZ - 85.00%		Paid Off - 360		01-Dec-2004

191020713 2			229,222.00		227,405.30			01-Jul-2005		6.750%		WA - 89.89%		Paid Off - 360		01-Nov-2004

191020953 2			157,600.00		156,433.49			01-Jul-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Dec-2004

191021188 1			157,636.00		156,621.35			05-Jul-2005		7.200%		CA - 94.96%		Paid Off - 360		01-Dec-2004

211023295 2			276,250.00		274,357.09			28-Jul-2005		7.500%		VA - 85.00%		Paid Off - 360		01-Nov-2004

211023390 2			218,320.00		218,320.00			25-Jul-2005		5.990%		MD - 80.00%		Paid Off - 360		01-Dec-2004

211023737 1			86,250.00		85,861.51			06-Jul-2005		8.990%		VA - 75.00%		Paid Off - 360		01-Dec-2004

211023979 2			182,000.00		180,917.08			28-Jul-2005		7.600%		VA - 70.00%		Paid Off - 360		01-Dec-2004

231056596 2			152,000.00		151,307.33			19-Jul-2005		8.250%		NJ - 43.43%		Paid Off - 360		01-Jan-2005

231057714 1			119,000.00		118,443.78			28-Jul-2005		8.800%		CT - 69.19%		Paid Off - 360		01-Dec-2004

231058061 3			139,200.00		138,302.98			06-Jul-2005		6.490%		CT - 80.00%		Paid Off - 360		01-Jan-2005

251033540 3			276,255.00		274,267.88			26-Jul-2005		7.250%		CA - 87.70%		Paid Off - 360		01-Nov-2004

251033614 2			236,700.00		234,858.67			30-Jul-2005		6.850%		CA - 90.00%		Paid Off - 360		01-Nov-2004

251033952 1			70,000.00		69,755.46			06-Jul-2005		10.200%		CA - 20.00%		Paid Off - 360		01-Dec-2004

261048685 1			95,250.00		94,736.93			18-Jul-2005		8.700%		OH - 75.00%		Paid Off - 360		01-Nov-2004

261049139 1			87,750.00		87,190.66			14-Jul-2005		7.250%		FL - 75.00%		Paid Off - 360		01-Dec-2004

271015879 1			143,000.00		141,477.19			21-Jul-2005		7.950%		VA - 57.20%		Paid Off - 360		01-Nov-2004

271016759 2			222,000.00		220,652.72			28-Jul-2005		7.500%		NY - 70.48%		Paid Off - 360		01-Dec-2004

271017640 3			120,000.00		119,610.75			11-Jul-2005		10.550%		CT - 17.75%		Paid Off - 360		01-Dec-2004

271017786 1			171,000.00		170,995.96			28-Jul-2005		6.800%		AZ - 95.00%		Paid Off - 360		01-Dec-2004

311023831 3			481,500.00		478,430.74			05-Jul-2005		7.250%		NJ - 90.00%		Paid Off - 360		01-Dec-2004

311024190 3			238,000.00		236,910.15			05-Jul-2005		8.900%		NJ - 85.00%		Paid Off - 360		01-Dec-2004

311024831 1			124,000.00		123,309.10			30-Jul-2005		7.240%		NJ - 80.00%		Paid Off - 360		01-Jan-2005

311024922 2			152,000.00		151,156.23			26-Jul-2005		7.950%		NJ - 80.00%		Paid Off - 360		01-Dec-2004

331030663 3			825,000.00		819,792.43			28-Jul-2005		7.300%		NY - 73.99%		Paid Off - 360		01-Dec-2004

331030940 3			420,750.00		420,750.00			21-Jul-2005		6.700%		NY - 85.00%		Paid Off - 360		01-Dec-2004

331031168 2			262,500.00		261,114.31			01-Jul-2005		8.200%		NJ - 75.00%		Paid Off - 360		01-Dec-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

331031420 2			245,000.00		243,651.04			13-Jul-2005		7.990%		NY - 66.85%		Paid Off - 360		01-Dec-2004


341020729 2			200,165.00		199,146.60			29-Jul-2005		7.700%		NC - 95.00%		Paid Off - 360		01-Jan-2005

361021870 1			105,200.00		104,738.47			12-Jul-2005		8.450%		MI - 80.00%		Paid Off - 360		01-Jan-2005

371021920 3			82,790.00		82,359.72			12-Jul-2005		8.750%		FL - 85.00%		Paid Off - 360		01-Jan-2005

371022033 1			123,200.00		122,387.36			27-Jul-2005		7.075%		FL - 70.00%		Paid Off - 360		01-Dec-2004

371022076 2			256,500.00		255,719.28			21-Jul-2005		10.200%		FL - 90.00%		Paid Off - 360		01-Jan-2005

381016662 2			157,700.00		156,569.76			29-Jul-2005		7.950%		MA - 95.00%		Paid Off - 360		01-Nov-2004

391009181 2			200,000.00		198,661.44			08-Jul-2005		7.000%		LA - 47.62%		Paid Off - 360		01-Dec-2004

406100446 3			289,000.00		286,683.21			21-Jul-2005		7.250%		CA - 85.00%		Paid Off - 360		01-Oct-2004

407013771 2			153,000.00		152,348.00			12-Jul-2005		9.250%		IL - 85.00%		Paid Off - 360		01-Dec-2004

407089658 2			255,000.00		251,065.47			28-Jul-2005		7.920%		NM - 85.00%		Paid Off - 360		01-Sep-2004

407169168 1			187,500.00		185,628.10			26-Jul-2005		7.990%		NY - 75.00%		Paid Off - 360		01-Oct-2004

407305731 3			204,000.00		202,844.89			14-Jul-2005		8.990%		CA - 80.00%		Paid Off - 360		01-Oct-2004

407306087 1			79,750.00		79,298.38			18-Jul-2005		8.990%		PA - 100.00%		Paid Off - 360		01-Oct-2004

408106720 1			152,000.00		151,096.17			14-Jul-2005		8.750%		CA - 80.00%		Paid Off - 360		01-Oct-2004

408106802 2			56,525.00		56,190.90			19-Jul-2005		7.750%		AL - 85.00%		Paid Off - 360		01-Dec-2004

408242558 2			161,600.00		160,611.24			11-Jul-2005		8.625%		MD - 80.00%		Paid Off - 360		01-Oct-2004

408254931 2			157,250.00		155,793.26			01-Jul-2005		6.500%		CA - 85.00%		Paid Off - 360		01-Oct-2004

408255157 1			322,200.00		320,195.90			01-Jul-2005		7.375%		MA - 90.00%		Paid Off - 360		01-Dec-2004

409011899 2			188,000.00		186,776.37			05-Jul-2005		7.758%		NJ - 80.00%		Paid Off - 360		01-Nov-2004

409035256 2			327,920.00		325,369.57			28-Jul-2005		6.850%		VA - 80.00%		Paid Off - 360		01-Nov-2004

409076974 3			88,000.00		87,596.32			13-Jul-2005		9.490%		ME - 80.00%		Paid Off - 360		01-Nov-2004

409102386 3			374,000.00		371,621.80			15-Jul-2005		7.875%		CA - 85.00%		Paid Off - 360		01-Nov-2004

409102511 2			101,700.00		101,067.95			27-Jul-2005		7.990%		PA - 90.00%		Paid Off - 360		01-Nov-2004

409103064 3			157,575.20		157,568.59			29-Jul-2005		7.490%		AZ - 80.00%		Paid Off - 360		01-Dec-2004

409133745 2			188,000.00		186,712.38			01-Jul-2005		7.500%		MD - 80.00%		Paid Off - 360		01-Nov-2004

409145795 3			143,200.00		142,412.92			08-Jul-2005		7.999%		OH - 80.00%		Paid Off - 360		01-Dec-2004

409146482 2			123,360.00		122,426.60			27-Jul-2005		6.990%		AZ - 80.00%		Paid Off - 360		01-Nov-2004

409157868 3			301,750.00		298,991.24			12-Jul-2005		5.999%		CA - 85.00%		Paid Off - 360		01-Nov-2004

409157898 1			158,000.00		157,382.81			01-Jul-2005		10.250%		FL - 83.16%		Paid Off - 360		01-Nov-2004

409158770 3			236,000.00		234,134.68			01-Jul-2005		7.375%		NJ - 80.00%		Paid Off - 360		01-Nov-2004

409160459 2			292,000.00		292,000.00			06-Jul-2005		6.500%		CA - 80.00%		Paid Off - 360		01-Nov-2004

409203844 3			210,600.00		209,440.40			08-Jul-2005		7.990%		MD - 90.00%		Paid Off - 360		01-Dec-2004

409214551 2			227,900.00		226,175.57			08-Jul-2005		6.990%		VA - 80.00%		Paid Off - 360		01-Nov-2004

409272327 3			180,000.00		178,907.60			19-Jul-2005		7.500%		FL - 90.00%		Paid Off - 360		01-Dec-2004

409282533 2			220,000.00		218,454.46			07-Jul-2005		6.750%		CT - 80.00%		Paid Off - 360		01-Dec-2004

409282657 3			50,000.00		49,699.44			28-Jul-2005		7.550%		OK - 68.49%		Paid Off - 360		01-Dec-2004

409294305 2			139,500.00		138,800.65			29-Jul-2005		8.500%		IL - 90.00%		Paid Off - 360		01-Dec-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

409294454 2			235,000.00		233,676.03			20-Jul-2005		7.875%		NY - 73.44%		Paid Off - 360		01-Dec-2004


410052165 3			116,000.00		115,245.92			08-Jul-2005		7.150%		CA - 82.86%		Paid Off - 360		01-Dec-2004

410117664 2			212,000.00		210,655.16			19-Jul-2005		7.275%		VA - 80.00%		Paid Off - 360		01-Dec-2004

410129595 2			279,200.00		279,199.56			20-Jul-2005		6.875%		CA - 80.00%		Paid Off - 360		01-Dec-2004

410131551 2			124,800.00		122,029.44			20-Jul-2005		8.750%		AL - 87.27%		Paid Off - 180		01-Dec-2004

410154483 2			182,000.00		180,891.87			06-Jul-2005		7.490%		MO - 65.00%		Paid Off - 360		01-Dec-2004

410155203 1			178,500.00		177,548.18			20-Jul-2005		8.150%		VA - 85.00%		Paid Off - 360		01-Dec-2004

410186480 1			235,125.00		233,858.62			07-Jul-2005		8.100%		MD - 90.00%		Paid Off - 360		01-Dec-2004

410186633 1			136,000.00		135,198.77			13-Jul-2005		7.650%		MD - 80.00%		Paid Off - 360		01-Dec-2004

410198640 2			255,000.00		253,680.44			19-Jul-2005		8.299%		MD - 85.00%		Paid Off - 360		01-Dec-2004

410201195 2			258,000.00		256,358.24			07-Jul-2005		7.259%		MI - 100.00%		Paid Off - 360		01-Dec-2004

410224686 1			169,600.00		168,667.88			29-Jul-2005		7.999%		VA - 80.00%		Paid Off - 360		01-Dec-2004

521020718 1			332,500.00		330,274.58			25-Jul-2005		7.000%		IN - 93.69%		Paid Off - 360		01-Dec-2004

561000961 1			230,000.00		228,810.16			28-Jul-2005		8.300%		FL - 77.97%		Paid Off - 360		01-Dec-2004

611012287 1			60,000.00		59,643.05			11-Jul-2005		7.600%		NY - 80.00%		Paid Off - 360		01-Dec-2004

611012562 1			162,900.00		161,744.53			29-Jul-2005		6.700%		NY - 90.00%		Paid Off - 360		01-Dec-2004

611013087 2			245,000.00		243,637.64			19-Jul-2005		7.250%		NY - 67.12%		Paid Off - 360		01-Jan-2005

611013306 3			391,500.00		389,488.30			21-Jul-2005		7.650%		NY - 90.00%		Paid Off - 360		01-Jan-2005

621005151 1			64,999.00		64,668.29			21-Jul-2005		7.700%		FL - 59.63%		Paid Off - 360		01-Jan-2005

631004710 3			112,500.00		111,670.76			26-Jul-2005		6.500%		CA - 75.00%		Paid Off - 360		01-Dec-2004

631004731 3			585,000.00		581,519.24			15-Jul-2005		7.600%		CA - 90.00%		Paid Off - 360		01-Dec-2004

651006155 2			175,750.00		174,732.94			28-Jul-2005		7.740%		WI - 94.24%		Paid Off - 360		01-Dec-2004

661002348 3			86,000.00		85,344.19			22-Jul-2005		6.950%		NV - 55.84%		Paid Off - 360		01-Nov-2004

661002501 2			198,000.00		196,786.52			11-Jul-2005		7.450%		CA - 70.71%		Paid Off - 360		01-Dec-2004

661002547 3			425,000.00		422,471.26			29-Jul-2005		7.600%		CA - 69.11%		Paid Off - 360		01-Dec-2004

671001620 2			127,600.00		127,600.00			11-Jul-2005		6.600%		CA - 80.00%		Paid Off - 360		01-Dec-2004

671001717 2			217,750.00		216,588.97			27-Jul-2005		8.150%		CA - 65.00%		Paid Off - 360		01-Dec-2004

671001781 2			169,900.00		168,742.86			01-Jul-2005		6.200%		CA - 94.44%		Paid Off - 360		01-Jan-2005

681002288 1			107,950.00		107,131.23			21-Jul-2005		6.350%		ME - 83.68%		Paid Off - 360		01-Dec-2004

681002304 1			124,000.00		123,209.57			05-Jul-2005		7.250%		ME - 80.00%		Paid Off - 360		01-Dec-2004

681002487 1			96,000.00		93,639.22			28-Jul-2005		7.550%		VT - 71.11%		Paid Off - 180		01-Dec-2004

681002570 2			169,100.00		168,225.19			15-Jul-2005		8.300%		ME - 95.00%		Paid Off - 360		01-Dec-2004

681002651 3			135,200.00		134,231.72			13-Jul-2005		6.650%		NH - 80.00%		Paid Off - 360		01-Dec-2004

681002818 1			128,000.00		127,422.61			22-Jul-2005		8.300%		ME - 80.00%		Paid Off - 360		01-Jan-2005

691000770 2			175,000.00		174,100.78			21-Jul-2005		7.650%		MD - 70.00%		Paid Off - 360		01-Jan-2005

691001103 2			257,000.00		255,758.49			22-Jul-2005		9.250%		MD - 73.43%		Paid Off - 360		01-Nov-2004

691001403 2			184,000.00		182,744.40			21-Jul-2005		6.900%		MD - 80.00%		Paid Off - 360		01-Dec-2004

711004754 2			245,000.00		243,640.26			22-Jul-2005		7.950%		MA - 79.03%		Paid Off - 360		01-Dec-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

721004834 2			234,500.00		234,500.00			22-Jul-2005		6.000%		CA - 63.38%		Paid Off - 360		01-Dec-2004


721005012 1			156,000.00		154,953.89			26-Jul-2005		6.990%		NV - 80.00%		Paid Off - 360		01-Dec-2004

731007362 1			100,000.00		99,456.02			26-Jul-2005		8.050%		VA - 57.14%		Paid Off - 360		01-Dec-2004

741007700 1			102,750.00		102,223.79			15-Jul-2005		8.350%		PA - 75.00%		Paid Off - 360		01-Dec-2004

761005442 2			207,100.00		205,839.92			01-Jul-2005		7.495%		IL - 95.00%		Paid Off - 360		01-Dec-2004

781001089 3			303,750.00		302,077.64			28-Jul-2005		7.990%		NJ - 75.00%		Paid Off - 360		01-Dec-2004

781001186 2			252,000.00		250,313.37			18-Jul-2005		7.000%		NJ - 90.00%		Paid Off - 360		01-Dec-2004

831030019 1			125,300.00		124,560.79			15-Jul-2005		8.250%		CA - 70.00%		Paid Off - 360		01-Nov-2004

831030020 3			262,500.00		260,982.28			30-Jul-2005		8.350%		CA - 75.00%		Paid Off - 360		01-Nov-2004

831030021 2			216,000.00		214,894.00			01-Jul-2005		8.950%		CA - 90.00%		Paid Off - 360		01-Nov-2004

841001608 1			85,000.00		84,589.93			18-Jul-2005		8.000%		MI - 85.00%		Paid Off - 360		01-Jan-2005

841001635 1			108,800.00		108,152.19			12-Jul-2005		6.900%		MI - 80.00%		Paid Off - 360		01-Jan-2005

1000031897 3			520,000.00		520,000.00			11-Aug-2005		7.250%		CA - 77.27%		Paid Off - 360		01-Nov-2004

1000036348 3			416,500.00		413,896.64			10-Aug-2005		7.350%		VA - 85.00%		Paid Off - 360		01-Dec-2004

1000044115 1			259,300.00		259,216.00			01-Aug-2005		7.775%		FL - 94.98%		Paid Off - 360		01-Dec-2004

1000054737 1			228,000.00		226,471.02			10-Aug-2005		6.990%		CA - 95.00%		Paid Off - 360		01-Dec-2004

1000055362 3			189,200.00		187,737.36			18-Jul-2005		6.250%		CA - 80.00%		Paid Off - 360		01-Dec-2004

1000055406 2			47,300.00		46,756.87			18-Jul-2005		9.550%		CA - 20.00%		Paid Off - 240		01-Dec-2004

1000062130 2			317,050.00		315,087.57			29-Jul-2005		7.400%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1000064860 2			#######		239,463.73			09-Aug-2005		7.250%		CA - 74.38%		Paid Off - 360		01-Dec-2004

1000068367 3			361,250.00		357,244.48			22-Jul-2005		7.000%		CA - 85.00%		Paid Off - 360		01-Dec-2004

1000072824 2			109,800.00		109,488.71			12-Aug-2005		6.750%		WA - 90.00%		Paid Off - 300		01-Dec-2004

2010040786510 1			155,000.00		154,053.93			11-Jul-2005		9.550%		VA - 100.00%		Paid Off - 360		01-Aug-2004

2010040923380 1			200,000.00		199,005.25			28-Jul-2005		9.090%		VA - 68.97%		Paid Off - 360		01-Nov-2004

2010040926110 1			132,000.00		131,057.73			21-Jul-2005		7.840%		NC - 88.00%		Paid Off - 360		01-Oct-2004

2010040926340 1			189,000.00		187,582.46			26-Jul-2005		7.590%		NC - 90.00%		Paid Off - 360		01-Oct-2004

2010041031910 1			92,200.00		89,526.85			18-Jul-2005		8.350%		NC - 79.48%		Paid Off - 180		01-Nov-2004

2010041032460 1			153,000.00		152,199.70			01-Jul-2005		8.940%		VA - 75.00%		Paid Off - 360		01-Dec-2004

2010041032730 1			105,600.00		104,761.45			12-Jul-2005		6.740%		VA - 72.83%		Paid Off - 360		01-Nov-2004

2010041042820 3			71,200.00		70,661.26			26-Jul-2005		6.990%		NC - 65.32%		Paid Off - 360		01-Nov-2004

2020040858830 1			72,675.00		72,255.92			06-Jul-2005		9.490%		NY - 82.59%		Paid Off - 360		01-Nov-2004

2020040965050 3			123,250.00		122,785.48			28-Jul-2005		9.840%		FL - 85.00%		Paid Off - 360		01-Dec-2004

2020040966120 1			133,000.00		132,324.75			28-Jul-2005		8.990%		OH - 66.50%		Paid Off - 360		01-Nov-2004

2030040928550 3			63,000.00		62,660.61			21-Jul-2005		8.700%		PA - 80.77%		Paid Off - 360		01-Nov-2004

2030040929090 3			165,750.00		164,495.82			21-Jul-2005		6.990%		MD - 85.00%		Paid Off - 360		01-Nov-2004

2030041029600 3			160,225.00		159,228.33			12-Jul-2005		7.990%		PA - 80.11%		Paid Off - 360		01-Nov-2004

2030041030490 3			155,200.00		154,301.83			28-Jul-2005		7.740%		PA - 80.00%		Paid Off - 360		01-Dec-2004

2030041031470 3			100,000.00		99,341.56			20-Jul-2005		7.700%		NJ - 52.08%		Paid Off - 360		01-Nov-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

2050040901630 3			86,000.00		85,349.22			01-Jul-2005		6.990%		OH - 21.34%		Paid Off - 360		01-Nov-2004


2050040902220 3			80,800.00		80,245.45			08-Jul-2005		7.490%		KY - 80.00%		Paid Off - 360		01-Nov-2004

2050041004750 3			110,700.00		109,984.01			05-Jul-2005		7.790%		IN - 90.00%		Paid Off - 360		01-Nov-2004

2050041005570 3			80,000.00		79,486.69			26-Jul-2005		7.840%		IN - 80.00%		Paid Off - 360		01-Nov-2004

2060040984110 3			104,000.00		102,893.29			08-Jul-2005		7.990%		FL - 80.00%		Paid Off - 360		01-Nov-2004

2060041087210 1			142,800.00		141,694.08			22-Jul-2005		6.390%		FL - 80.68%		Paid Off - 360		01-Dec-2004

2060041088390 3			124,200.00		123,516.18			27-Jul-2005		7.990%		FL - 90.00%		Paid Off - 360		01-Dec-2004

2070040938920 1			233,600.00		232,129.79			27-Jul-2005		7.315%		KS - 77.87%		Paid Off - 360		01-Dec-2004

2070040939820 3			131,000.00		130,013.19			01-Jul-2005		7.590%		IL - 77.06%		Paid Off - 360		01-Oct-2004

2070040942510 3			206,100.00		204,987.76			13-Jul-2005		8.090%		IL - 85.88%		Paid Off - 360		01-Dec-2004

2070041049370 3			76,000.00		75,304.19			13-Jul-2005		7.440%		MO - 77.55%		Paid Off - 360		01-Dec-2004

2070041055600 3			168,800.00		168,041.14			26-Jul-2005		8.990%		IL - 80.00%		Paid Off - 360		01-Dec-2004

2080040918730 3			51,000.00		50,745.00			19-Jul-2005		8.470%		MI - 72.86%		Paid Off - 360		01-Dec-2004

2090041005450 1			280,000.00		277,310.96			26-Jul-2005		5.840%		MA - 60.87%		Paid Off - 360		01-Nov-2004

2200041034560 3			310,000.00		307,921.12			18-Jul-2005		6.990%		CA - 82.67%		Paid Off - 360		01-Dec-2004

2210040760320 3			96,050.00		95,431.09			15-Jul-2005		8.850%		MI - 85.00%		Paid Off - 360		01-Sep-2004

2210040971840 3			182,000.00		180,622.91			07-Jul-2005		6.990%		MO - 88.78%		Paid Off - 360		01-Nov-2004

2210041073070 3			100,000.00		98,986.93			05-Jul-2005		8.240%		MO - 50.00%		Paid Off - 360		01-Nov-2004

2210041073570 3			198,000.00		196,829.55			15-Jul-2005		8.240%		IL - 90.00%		Paid Off - 360		01-Nov-2004

2220040978020 3			136,000.00		134,891.46			25-Jul-2005		7.165%		VA - 80.00%		Paid Off - 360		01-Oct-2004

2220041082260 3			134,300.00		133,440.04			18-Jul-2005		7.840%		MD - 85.00%		Paid Off - 360		01-Nov-2004

2230040941070 1			90,000.00		89,366.45			14-Jul-2005		6.740%		WA - 52.94%		Paid Off - 360		01-Dec-2004

2250041010120 1			219,600.00		217,856.15			27-Jul-2005		6.740%		FL - 90.00%		Paid Off - 360		01-Nov-2004

2260040963070 1			220,000.00		217,843.50			22-Jul-2005		5.650%		AZ - 77.19%		Paid Off - 360		01-Nov-2004

2260041075070 1			167,250.00		166,014.82			15-Jul-2005		6.490%		AZ - 75.00%		Paid Off - 360		01-Dec-2004

2260041075730 3			150,000.00		148,946.23			25-Jul-2005		6.750%		AZ - 83.33%		Paid Off - 360		01-Dec-2004

2260041078220 3			123,200.00		122,374.39			13-Jul-2005		6.990%		AZ - 80.00%		Paid Off - 360		01-Dec-2004

2290040500650 1			193,000.00		190,589.06			11-Jul-2005		6.350%		CA - 67.72%		Paid Off - 360		01-Jul-2004

2290040940650 3			240,000.00		237,896.24			14-Jul-2005		6.840%		CA - 65.75%		Paid Off - 360		01-Dec-2004

2290041044740 1			197,000.00		195,843.97			22-Jul-2005		7.670%		CA - 82.08%		Paid Off - 360		01-Dec-2004

2290041046690 1			190,000.00		188,779.52			01-Jul-2005		7.510%		CA - 67.86%		Paid Off - 360		01-Dec-2004

2300040635880 1			255,000.00		251,465.67			20-Jul-2005		5.400%		CA - 69.86%		Paid Off - 360		01-Aug-2004

2300040944050 1			186,000.00		184,643.12			12-Jul-2005		6.690%		CA - 66.43%		Paid Off - 360		01-Dec-2004

2350041062700 3			240,000.00		238,112.40			18-Jul-2005		6.790%		NJ - 84.21%		Paid Off - 360		01-Nov-2004

2350041063630 1			178,000.00		176,699.57			07-Jul-2005		6.690%		NJ - 82.79%		Paid Off - 360		01-Dec-2004

2360040935470 3			175,000.00		173,884.48			14-Jul-2005		7.250%		CA - 77.78%		Paid Off - 360		01-Dec-2004

2360040935530 3			287,850.00		285,671.93			12-Jul-2005		6.990%		CA - 92.85%		Paid Off - 360		01-Nov-2004

2360040936160 3			225,000.00		223,547.76			28-Jul-2005		7.800%		CA - 90.00%		Paid Off - 360		01-Nov-2004



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution

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


&		Loan	Principal		Prepayment			Prepayment		Note		LTV at		&		Payment

Loan Group		Status	Balance		Amount			Date		Rate		Origination		Original Term		Date

2360040937290 3			89,000.00		88,397.33			18-Jul-2005		6.940%		CA - 63.57%		Paid Off - 360		01-Dec-2004




TOTAL			50,730,692.20		50,421,606.50



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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Realized Loss Report

COLLATERAL REALIZED LOSSES



									Group 3		Group 2		Group 1		Total


Current




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

Cumulative




Number of Loans Liquidated								0		0		2		2
Collateral Realized Loss/(Gain) Amount								0.00		0.00		43,976.09		43,976.09
Net Liquidation Proceeds								0.00		0.00		141,901.17		141,901.17










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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution


DEFAULT SPEEDS



									Group 3		Group 2		Group 1		Total



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


CDR								0.00%		0.00%		0.00%		0.00%
3 Months Avg CDR								0.00%		0.00%		0.16%		0.05%
12 Months Avg CDR								0.00%		0.00%		0.10%		0.03%
Avg CDR Since Cut-off								0.00%		0.00%		0.10%		0.03%


SDA								0.00%		0.00%		0.00%		0.00%
3 Months Avg SDA Approximation								0.00%		0.00%		0.96%		0.30%
12 Months Avg SDA Approximation								0.00%		0.00%		0.65%		0.21%
Avg SDA Since Cut-off Approximation								0.00%		0.00%		0.65%		0.21%


Loss Severity Approximation for Current Period								0.00%		0.00%		0.00%		0.00%
3 Months Avg Loss Severity Approximation								0.00%		0.00%		7.89%		7.89%
12 Months Avg Loss Severity Approximation								0.00%		0.00%		4.73%		4.73%
Avg Loss Severity Approximation Since Cut-off								0.00%		0.00%		4.73%		4.73%












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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution





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



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

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

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

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

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

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

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




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Realized Loss Detail Report
Loan Number			Current		State &				Prior		Realized				Cumulative

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

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





TOTAL



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

Mortgage Pass-Through Certificates

2005-HE2

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

								Group 3		Group 2		Group 1		Total
						Trigger Event in effect (0=No , 1=Yes)								0
						Stepdown Date has occurred (0 = No, 1=Yes)								0
						3 months rolling 60+ days includes 60+ bkcs and all flcs								0.00
						Ending Balance								1,369,703,209.31
						Prior period Senior Enhancement Percentage								20.6800%



ADJUSTABLE RATE CERTIFICATE INFORMATION

SPACE INTENTIONALLY LEFT BLANK



ADDITIONAL INFORMATION

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




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

Mortgage Pass-Through Certificates

2005-HE2

August 25, 2005 Distribution
Other Related Information
ADDITIONAL INFORMATION

								Group 3		Group 2		Group 1		Total
Current Scheduled Payments														9,724,598.59
Current Scheduled Payments 1 Month Prior														10,097,222.63
Current Scheduled Payments 2 Month Prior														10,382,745.56
Current Scheduled Payments 3 Month Prior														10,627,011.35
Current Scheduled Payments 4 Month Prior														10,868,495.06
Current Scheduled Payments 5 Month Prior														0.00
Current Scheduled Payments 6 Month Prior														0.00
Current Scheduled Payments 7 Month Prior														0.00
Current Scheduled Payments 8 Month Prior														0.00
Current Scheduled Payments 9 Month Prior														0.00
Current Scheduled Payments 10 Month Prior														0.00
Current Scheduled Payments 11 Month Prior														0.00





Sched. Payments for 60+Day Delinquent Loans								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 1 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 2 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 3 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 4 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 5 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 6 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 7 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 8 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 9 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 10 Month Prior								0.00		0.00		0.00		0.00
Sched. Pmts - 60+Day Delinquent Loans, 11 Month Prior								0.00		0.00		0.00		0.00




Page 36 of 36

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