[Henke]

Villian is mostly a loose/passive and chases his overs. It seems that when he does hit, he bets though. Now should I have folded turn?

No, but then the river fold is fine.

I ran into a couple situations with these hands and this player. i'd bet with top pair or better and when a scare card comes he usually bets.

This contradicts your statement above. If he ususally bets when a scare card comes, that means he's probably bluffing most of the time (or is really lucky to always hit). Then I would call down (raising the turn would only give him the opportunity to give up the hand cheaply).