Resident Evil i'd say is the best horror series, it's a bit unfortunate that iv'e heard loads of people say that they won't play RE5 because they think it's "racist".
I think fear is vastly overrated IMO but its still a fun game and I well buy part 2 I like every horror game mentioned so far but one game that really surprised me was siren: blood curse I got it on the psn not knowing anything about it and just looking for something to pass the time and it absolutely freaked me at a some parts the only other game I can think of that actually scared me is the first silent hill and I played it when I was little and siren reverted me back to a child state of mind for a few moments if you're a fan of horror games get siren: blood curse its really fun just don't go into it expecting something absolutely glorious just like every game it has flaws some people might find it stupid some people might love like me its definitely not the best horror game but its definitely worth looking into
I'd have to go with the Resident Evil Series when your out of ammo running away from the hunters, dogs etc on resi evil 1 your heart beats a mile a minute its great stuff.
I think resi evil 4 revived the series as it was growing stale and resi 5 looks terrifying from how the new trailer looks.
Favorites? The original Resident Evil, Resident Evil 4, Silent Hill 2, Silent Hill 4 - The Room (I loved the little floating head that flys by your bedroom window, the first time I saw it I was like what the hell was that? lol.) , Silent Hill - Homecoming, Dead Rising, and Kuon.
I want to play Left 4 Dead, Jericho, and Dead Space but haven't gotten around to it yet.