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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.
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