2 pair on flop but flush card hits on turn

[XHitman014]

Villian is very loose PF but doesn't seem "too" bad post flop. He's running like 45/25/1.8.

Full Tilt Poker - No Limit Hold'em Cash Game - $0.50/$1 Blinds - 6 Players - (LegoPoker Hand History Converter)

SB: $299.75
Hero (BB): $170.70
UTG: $59.65
MP: $98.50
CO: $83.80
BTN: $123.75

Preflop: Hero is dealt 8[img]/images/graemlins/spade.gif[/img] 7[img]/images/graemlins/diamond.gif[/img] (6 Players)
UTG calls $1.00, MP folds, CO calls $1.00, BTN folds, SB calls $0.50, Hero checks

Flop: ($4) 3[img]/images/graemlins/heart.gif[/img] 7[img]/images/graemlins/heart.gif[/img] 8[img]/images/graemlins/diamond.gif[/img] (4 Players)
<font color="red">SB bets $3.00</font>, <font color="red">Hero raises to $13.00</font>, UTG folds, CO calls $13.00, SB folds

Turn: ($33) J[img]/images/graemlins/heart.gif[/img] (2 Players)
Hero checks, <font color="red">CO bets $25.00</font>, Hero ...

A little deeper I b/f but not sure what to do here...