Hand for review - K8s in middle position

Absolute Poker 0.50/1 Hold'em (6 handed) converter

Preflop: Hero is CO with 8[img]/images/graemlins/club.gif[/img], K[img]/images/graemlins/club.gif[/img].
<font color="#666666">2 folds</font>, <font color="#CC3333">Hero raises</font>, Button calls, <font color="#666666">2 folds</font>.

Flop: (5.50 SB) 5[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/club.gif[/img], Q[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Hero bets</font>, Button calls.

Turn: (3.75 BB) K[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Hero bets</font>, <font color="#CC3333">Button raises</font>, Hero calls.

River: (7.75 BB) J[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">Button bets</font>, Hero calls.

Final Pot: 9.75 BB

The villan here is very loose passive....60.7/3.4/0.7

I am thinking that the river call was very bad, but could I have even folded this hand on the turn?

Thoughts and comments are appreciated!

Margon