I think I have found what is wrong with my lilies. Botrytis! I emailed the people at Plantlilies.com and she confirmed (as best she could through pics) and shared some tips with me. Here is some of her information on her website Control Lily Botrystis. So I am gonna try some of her tips but I probably won't see if it truly works until next summer when they grow and bloom again, since the damage is already done this year. They are so beautiful I hope this is my solution!