Okay Lydia died when I was in a Falmer Ruin (Mzulft) and I seen her die or so I thought because later when I came out I never received money from The Jarl with his sympathies and when I went to the Hall Of The Dead (whiterun) she wasn't there. I need help because she had some of my gold and item. The reason I never took them of her is because she fell of this huge drop and I couldn't find her body after that.

If you are on the pc type this in the console

prid a2c94
moveto player

Try waiting a few days. If you get a message that she left your service then she is alive and is waiting for you in Dragonsreach, or Breezehome if you own it.

If she's not there then she's dead.

Might not help. A friend of mine lost Lydia himself, after a week of real time playing, he finally found the command to teleport to people, and teleported to Lydia only to find her locked up in a jail cell of Whiterun. He has no idea how she got there, and to this day she still lives in that same cell. Stripped of all gear but rags for a crime she committed.

I'm on PS3 i really have to start saying that
I'll see if she's there

Wow, who knew she was a bad girl?

Ive never received a letter of condolence after losing a housecarl. Should I have?

Perhaps that's a burden nobody wants to carry.