**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K**

| x | ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

**December      31**
**2005**

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

**333-115371-03**

**POPULAR      ABS, INC.**

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**(as      depositor under a certain Pooling and Servicing Agreement dated as of**
**December      31, 2004**
**,      **

**providing      for the issuance of Mortgage Pass-Through Certificates, Series      2005-1)**

|  **Delaware**                                                                                     |   |  **52-2029487**                                              |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization)            |   | (I.R.S.                EmployerIdentification                No.) |
|                                                                                                   |   |                                                              |
| **103                Springer Building, 3411 Silverside Road,****Wilmington,                Delaware** |   |  **19803**                                                   |
| (Address                of principal executive offices)                                                |   | (Zip                Code)                                         |

**(302)      478-6160**

**None**

**None**

**  **
**  **

***      The closing date for the transaction was January 28, 2005.**

**Not      applicable**

**Not      applicable**

**Not      applicable**

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**PART      I**

**ITEM      1. BUSINESS**

**ITEM      1A. RISK FACTORS**

**ITEM      1B. UNRESOLVED STAFF COMMENTS**

**ITEM      2. PROPERTIES**

|  **Location**                                                            |   |  **Type                of Property** |   |  **Loan                Number** |   | **Stated****Principal                Balance** |   |  **Acquisition                Date** |
|-------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------------------------------------|--------|------------------------------------------------|--------|-------------------------------------------|
| 124                Lester Ave.Carthage,                TN 37030               |   | Residential                               |   | 168912                               |   | $93,969.37                                     |   | 9/7/05                                    |
| 296                Beatrice AvenueGladstone,                OR 97027          |   | Residential                               |   | 9886701                              |   | $160,447.35                                    |   | 10/27/05                                  |
| 717                Broad AvenueGreensboro,                NC 27406            |   | Residential                               |   | 7001456                              |   | $57,386.43                                     |   | 12/12/05                                  |
| 903                S 31st                StreetOmaha,                NE 68105 |   | Residential                               |   | 7006742                              |   | $89,933.20                                     |   | 12/7/05                                   |

**ITEM      3. LEGAL PROCEEDINGS**

** **

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

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**PART      II**

**ITEM      5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER      MATTERS**

| (a) | No                established public trading market for the Certificates                exists. |
|-----|-------------------------------------------------------------------------------------------------|

| (b) | As                of December 31, 2005, the number of holders of record of the publicly                offered Certificates was 70. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Omitted                pursuant to the No-Action Letter. |
|-----|----------------------------------------------------------|

**ITEM      6. SELECTED CONSOLIDATED FINANCIAL DATA**

**ITEM      7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET      RISK**

**ITEM      8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**ITEM      9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE.**

**ITEM      9A. CONTROLS AND PROCEDURES**

**ITEM      9B. OTHER INFORMATION**

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**PART      III**

**ITEM      10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT**

**ITEM      11. EXECUTIVE COMPENSATION**

**ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCK HOLDER MATTERS**

| (a) | Not                applicable. |
|-----|--------------------------------|

| (b) | Not                applicable. |
|-----|--------------------------------|

| (c) | Not                applicable. |
|-----|--------------------------------|

**ITEM      13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

| (a) | Not                applicable. |
|-----|--------------------------------|

| (b) | Not                applicable. |
|-----|--------------------------------|

| (c) | None. |
|-----|-------|

| (d) | None. |
|-----|-------|

**ITEM      14. PRINCIPAL ACCOUNTING FEES AND SERVICES.**

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**PART      IV**

**ITEM      15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM      8-K**

| (a) | Exhibits |
|-----|----------|

|   | 31.1 | Certification                pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 99.1 | Annual                Independent Accountants’ Servicing Report concerning servicing activities                under the Pooling and Servicing Agreement for the Servicer’s fiscal year                ended November 30, 2005, in accordance with the No-Action Letter. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 99.2 | Annual                Statement of Compliance under the Pooling and Servicing Agreement                for the                Servicer’s fiscal year ended November 30, 2005, in accordance with the                No-Action Letter. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 99.3 | Aggregate                Statement of Principal and Interest Distributions to Certificateholders. |
|--------|------|---------------------------------------------------------------------------------------------------|

| (b) | See                  Item 15(a) above. |
|-----|----------------------------------------|

| (c) | Omitted                pursuant to the No-Action Letter. |
|-----|----------------------------------------------------------|

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**SIGNATURES**

|                                         |                                                                         |                                                |
|----------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------|
|                                         | POPULAR                ABS, INC.,on                behalf of the Trust       |
|                                    |                                                                    |                                           |
| Date: March              13, 2006  | By:                                                                | /s/ James              H.              Jenkins |
|                                         | James              H. Jenkins, Executive Vice President and              CFO |
|                                         |                                                                         |

| (a)(1) | No                  annual report is provided to the Certificateholders other than                  with                  respect to aggregate principal and interest                  distributions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)(2) | No                    proxy statement, form of proxy or other proxy soliciting material                    has been                    sent to any Certificateholder with respect to any annual or other                    meeting                    of Certificateholders. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**INDEX      TO EXHIBITS**

| 31.1   | Certification                  pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as                  adopted                  pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.1   | Annual                Independent Accountants’ Servicing Report concerning servicing activities                under the Pooling and Servicing Agreement for the Servicer’s fiscal year                ended November 30, 2005, in accordance with the No-Action Letter.  |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.2   | Annual                Statement of Compliance under the Pooling and Servicing Agreement                for the                Servicer’s fiscal year ended November 30, 2005, in accordance with the                No-Action Letter. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.3   | Aggregate                  Statement of Principal and Interest Distributions to                  Certificateholders. |
|------------------|----------------------------------------------------------------------------------------------------------------------|

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