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Love The Descent. Easily one of my favorite recent horror films.
That's a good one. Saw that one in theaters three times XD
I'm a huge fan of Blair Witch Project and thought I should've mentioned it in my initial answer. However, for being such a fan of it, I haven't seen as much found-footage films as one would expect. I haven't seen any of the Paranormal Activity ones.
If you liked the Blair Witch Project, I highly recommend the movies I mentioned above. They feel like natural extensions and improvements on the genre that the blair witch started.