Snuff
 

Torture horror and found footage horror have become extremely popular in recent years. I feel like this is attributed to the films ability to lead us into suspending our disbelief. Found footage seems real because it's shot in a way that makes us feel like we're watching something that really happened. Torture horror does the same by giving us situations that could possibly happen.
Typically, when there are 2 things that are really good or popular and have something in common, someone will eventually experiment with putting the two together. I call it the sandwich effect, but I'm sure there's a term already coined for it. In this case, we have torture, and found footage. The common denominator here is horror.
So why haven't we been given a combination of the 2? Something like Hostel or SAW, shot like found footage. Or maybe an anthology of snuff as a spin on serial killer films.
We have had films that played with it, such as Vacancy, and any torture horror where the victims are on cameras. But why haven't we had a film where what we see is just what is being captured on camera. Meadowoods
came really close, but it wasn't so much about the death and selling the message that "This could happen," as much as trying to get into our heads and make us wonder if they are really going to go through with it and what is going to go wrong. Cannibal Holocaust certainly had the gruesome feeling to it, but the setting didn't really put over the idea that it could happen to anyone.
Perhaps it has been done and I just haven't seen it. If so, please leave a recommendation. If not, please discuss why you think it hasn't been done, and if you think it will ever be done.
I think the combination of the 2 film styles would b the ultimate way to elevate our disbelief and create fear and mania with the audience.

Well, of course tghere's the film "Snuff."

August Underground? I have all 3 films but i've only watched the first. And the Poughkeepsie tapes are pretty realistic.

Can you give me a run down of the plot, do you recommend it?

http://en.wikipedia.org/wiki/Snuff_(film)

Good god no man.It is one hell of a travesty.Avoid at all costs.

The Poughkeepsie Tapes is the closest thing I've seen to found footage meets torture. Most of the found footage is abduction and killing, but some is torture.

Man Bites Dog might be more artistic and satirical than you're looking for, but it has one home invasion scene that is fairly torturous.

If you don't care about plot, the Guinea Pig series might do. I've only seen the first two.

I've only seen parts of August Underground, but it's fairly believable found footage serial killing. Not exactly what your looking for, but might be of interest. I believe the latest film (Mordem?) is not found footage.