diff --git a/encfs/RawFileIO.cpp b/encfs/RawFileIO.cpp
index 5ec63f7..7c20310 100644
--- a/encfs/RawFileIO.cpp
+++ b/encfs/RawFileIO.cpp
@@ -75,6 +75,32 @@ RawFileIO::~RawFileIO() {
 
 Interface RawFileIO::interface() const { return RawFileIO_iface; }
 
+/*
+    Workaround for opening a file for write when permissions don't allow.
+    Since the kernel has already checked permissions, we can assume it is ok to
+    provide access.  So force it by changing permissions temporarily.  Should
+    be called with a lock around it so that there won't be a race condition
+    with calls to lstat picking up the wrong permissions.
+
+    This works around the problem described in https://github.com/vgough/encfs/issues/181
+    Without this, "umask 0777 ; echo foo > bar" fails.
+*/
+static int open_readonly_workaround(const char *path, int flags) {
+  int fd = -1;
+  struct stat stbuf;
+  memset(&stbuf, 0, sizeof(struct stat));
+  if (lstat(path, &stbuf) != -1) {
+    // make sure user has read/write permission..
+    chmod(path, stbuf.st_mode | 0600);
+    fd = ::open(path, flags);
+    chmod(path, stbuf.st_mode);
+  } else {
+    RLOG(INFO) << "can't stat file " << path;
+  }
+
+  return fd;
+}
+
 /*
     We shouldn't have to support all possible open flags, so untaint the flags
     argument by only taking ones we understand and accept.
@@ -107,6 +133,11 @@ int RawFileIO::open(int flags) {
 
     VLOG(1) << "open file with flags " << finalFlags << ", result = " << newFd;
 
+    if ((newFd == -1) && (errno == EACCES)) {
+      VLOG(1) << "using readonly workaround for open";
+      newFd = open_readonly_workaround(name.c_str(), finalFlags);
+    }
+
     if (newFd >= 0) {
       if (oldfd >= 0) {
         RLOG(ERROR) << "leaking FD?: oldfd = " << oldfd << ", fd = " << fd
diff --git a/encfs/main.cpp b/encfs/main.cpp
index d3cf573..d79ec79 100644
--- a/encfs/main.cpp
+++ b/encfs/main.cpp
@@ -405,17 +405,14 @@ static bool processArgs(int argc, char *argv[],
     PUSHARG("-o");
     PUSHARG("use_ino");
 
-    // "default_permissions" comes with a performance cost. Only enable
-    // it if makes sense.
-    for (int i = 0; i < out->fuseArgc; i++) {
-      if (out->fuseArgv[i] == NULL) {
-        continue;
-      } else if (strcmp(out->fuseArgv[i], "allow_other") == 0) {
-        PUSHARG("-o");
-        PUSHARG("default_permissions");
-        break;
-      }
-    }
+    // "default_permissions" comes with a performance cost, and only makes
+    // sense if "allow_other"" is used.
+    // But it works around the issues "open_readonly_workaround" causes,
+    // so enable it unconditionally.
+    // See https://github.com/vgough/encfs/issues/181 and
+    // https://github.com/vgough/encfs/issues/112 for more info.
+    PUSHARG("-o");
+    PUSHARG("default_permissions");
 
 #if defined(__APPLE__)
     // With OSXFuse, the 'local' flag selects a local filesystem mount icon in
diff --git a/tests/normal.t.pl b/tests/normal.t.pl
index 99e18b7..841c60a 100755
--- a/tests/normal.t.pl
+++ b/tests/normal.t.pl
@@ -2,7 +2,7 @@
 
 # Test EncFS normal and paranoid mode
 
-use Test::More tests => 102;
+use Test::More tests => 104;
 use File::Path;
 use File::Copy;
 use File::Temp;
@@ -46,6 +46,7 @@ sub runTests
     &renames;
     &internalModification;
     &grow;
+    &umask0777;
 
     &cleanup;
 }
@@ -324,3 +325,12 @@ sub cleanup
     ok( ! -d $workingDir, "working dir removed");
 }
 
+# Test that we can create and write to a a file even if umask is set to 0777
+# Regression test for bug https://github.com/vgough/encfs/issues/181
+sub umask0777
+{
+    my $old = umask(0777);
+    ok(open(my $fh, "+>$crypt/umask0777"), "open with umask 0777");
+    close($fh);
+    umask($old);
+}